Homework: Chapter 13 Homework

Every​ day, GinoGino buys 11 cup of teacup of tea and 11 samosasamosa for lunch. The price of a cup of teacup of tea is ​$0.750.75 and the price of a samosasamosa is ​$3.003.00. Gino'sGino's choice of lunch maximizes hishis total​ utility, and hehe spends only ​$3.753.75 on lunch. Gino'sGino's marginal utility from teatea is​ ______. A. 0.750.75 B. 0.2500.250 times hishis marginal utility from samosassamosas C. 1 divided by ÷0.750.75 D. ​$3.753.75 divided by ÷​$0.750.75 E. 4.004.00 times hishis marginal utility from samosas

0.2500.250 times hishis marginal utility from samosassamosas

Each week KirkKirk has ​$2020 to spend on latteslattes and e dash bookse-books. The price of a lattelatte is ​$5.005.00 and the price of an e dash bookan e-book is ​$10.0010.00. The relative price of a lattelatte is​ ______. A. 0.500.50 lattelatte B. 2.002.00 latteslattes C. 0.500.50 e dash booke-book D. 2.002.00 e dash bookse-books E. ​$0.50

0.500.50 e dash booke-book

The price of a pound of bananasa pound of bananas is ​$0.650.65 and the price of a pound of pastaa pound of pasta is ​$0.810.81​, so the relative price of a pound of bananasa pound of bananas is​ _______. A. ​$0.650.65 B. 1.251.25 pounds of bananaspounds of bananas C. 0.800.80 pounds of pastapounds of pasta D. ​$0.81

0.800.80 pounds of pastapounds of pasta

When the price of an​ e-book is​ $10, Marc's quantity demanded of​ e-books is nothing a month. When the price of an​ e-book is​ $5, Marc's quantity demanded of​ e-books is nothing a month.

1 3

At his consumption​ point, Marc's marginal rate of substitution is

2

The table shows​ Jerry's total utility from lottery ticketslottery tickets and candy barscandy bars. The price of a lottery ticketlottery ticket is ​$22​, the price of a candy barcandy bar is ​$44​, and Jerry has ​$1212 a week to spend. When Jerry maximizes his total​ utility, what quantities of lottery ticketslottery tickets and candy barscandy bars does he buy in a​ week? Jerry maximizes his total utility when he buys nothing lottery ticketslottery tickets and nothing candy barscandy bars a week.

2 2

The graph shows Andre'sAndre's budget line when the price of a cup of coffeecup of coffee is ​$2.002.00​, the price of a can of sodacan of soda is ​$1.001.00​, and hehe has ​$12.0012.00 a week to spend on coffeecoffee and sodasoda. Then the price of a cup of coffeecup of coffee rises to ​$3.003.00. Draw Andre'sAndre's budget line after the price rise. Label it. If AndreAndre buys 66 cans of sodacans of soda​, the maximum number of cups of coffeecups of coffee hehe can buy after the price rises is nothing a week. The new relative price of a cup of coffeecup of coffee is nothing ▼ cans of soda dollars . ​>>> Answer to 1 decimal place. When the price of a cup of coffeecup of coffee rises to ​$3.003.00​, the relative price of a can of sodacan of soda increases. A. True B. False

2 3 False

The opportunity cost of a e dash booke-book is​ ______. A. ​$2.002.00 B. 0.500.50 e dash booke-book C. 2.002.00 e dash bookse-books D. 0.500.50 lattelatte E. 2.002.00 lattes

2.002.00 lattes

Wendy'sWendy's lottery ticketlottery ticket and candy barcandy bar budget is ​$2020 a week. The price of a lottery ticketlottery ticket is ​$22 and the price of a candy barcandy bar is ​$55. The relative price of a candy barcandy bar is​ ______. A. 2.502.50 candy barscandy bars per lottery ticketlottery ticket B. 0.400.40 lottery ticketlottery ticket per candy barcandy bar C. 2.502.50 lottery ticketslottery tickets per candy barcandy bar D. 0.400.40 candy barcandy bar per lottery ticketlottery ticket E. ​$2.50

2.502.50 lottery ticketslottery tickets per candy barcandy bar

TimTim buys 33 smoothiessmoothies and 22 music CDsmusic CDs a week when hehe has ​$2828 to​ spend, the price of a CDCD is ​$88​, and the price of a smoothiesmoothie is ​$44. The relative price of a music CDmusic CD is​ ______. If the price of a music CDmusic CD falls to ​$4.004.00​, Tim'sTim's consumption possibilities​ ______. A. ​$88​; expand B. 0.500.50 music CDsmusic CDs​; shrink C. 22 smoothiessmoothies​; expand D. 22 music CDsmusic CDs​; expand E. 0.500.50 smoothiessmoothies​; shrink

22 smoothiessmoothies​; expand

The table shows​ Jerry's total utility from bus ticketsbus tickets and moviesmovies. The price of a bus ticketbus ticket is ​$33​, the price of a moviemovie is ​$33​, and Jerry has ​$2424 a week to spend. Calculate​ Jerry's marginal utility from the firstfirst bus ticketbus ticket and marginal utility per dollar when he buys 11 bus ticketbus ticket. Calculate​ Jerry's marginal utility from the thirdthird moviemovie and marginal utility per dollar when he buys 33 moviesmovies. ​>>> Answer to 1 decimal place. ​Jerry's marginal utility from the firstfirst bus ticketbus ticket is nothing units. The marginal utility per dollar from bus ticketsbus tickets when Jerry buys 11 bus ticketbus ticket is nothing units per dollar. ​Jerry's marginal utility from the thirdthird moviemovie is nothing units. The marginal utility per dollar from moviesmovies when Jerry buys 33 moviesmovies is nothing units per dollar.

360 120 240 80

The total utility obtained from three packs of potato chips is 36 units and the total utility obtained from two packs is 32 units. The marginal utility from the third pack is​ _____ unit(s). A. 1 B. 32 C. 12 D. 4

4

If the price of a bag of corn is​ $3 and the price of gum is 60 cents per​ pack, the relative price of a bag of corn is​ _____. A. 5 packs of gum per bag of corn B. 5 bags of corn per pack of gum C. 3 packs of gum per bag of corn D. 1 bag of corn per pack of gum

5 packs of gum per bag of corn

In a​ year, MarcoMarco buys 10 sweaters at ​$50 each and pays ​$40 for​ 10,000 gallons of tap water. MarcoMarco is maximizing total utility. If Marco'sMarco's marginal utility from water is 0.4 unit per​ gallon, hishis marginal utility from a sweatera sweater is nothing units. is maximizing hishis ​utility, so Marginal utility from a bouquet of flowersa bouquet of flowers divided by ÷Price of a bouquet of flowersa bouquet of flowers ​= Marginal utility from a gallon of water divided by ÷Price of a gallon of water. Inserting the values gives Marginal utility from a bouquet of flowersa bouquet of flowers divided by ÷​$1515 ​= 0.40.4 divided by ÷​$0.0050.005. Now rearrange the equation to calculate the marginal utility from a bouquet of flowersa bouquet of flowers.

5000

The principle of diminishing marginal utility applies to​ Ben's consumption of cinnamon bunscinnamon buns. A. True B. False

True

SarahSarah has ​$24.0024.00 a week to spend on coffeecoffee and sodasoda. The price of a cup of coffeecup of coffee is ​$2.002.00 and the price of a can of sodacan of soda is ​$1.001.00. Draw Sarah'sSarah's budget line and label it. ​>>> Plot the quantity of sodasoda on the x​-axis. SarahSarah can afford to buy 1212 cans of sodacans of soda and 44 cups of coffeecups of coffee. A. True B. False SarahSarah can afford to buy 1616 cans of sodacans of soda and 66 cups of coffeecups of coffee. A. True B. False The relative price of a cup of coffeecup of coffee is nothing ▼ cans of soda dollars .

True False 2

Hiro'sHiro's bus ticketbus ticket and sandwichsandwich budget is ​$2020 a week. The price of a bus ticketbus ticket is ​$22 and the price of a sandwichsandwich is ​$55. Choose the correct statement. A. When HiroHiro buys 1010 bus ticketsbus tickets a week hehe cannot afford to buy a sandwichsandwich. B. When HiroHiro spends all hishis budget on sandwichessandwiches​, hehe buys 1010 sandwichessandwiches a week. C. HiroHiro needs a larger budget. D. HiroHiro can afford to buy 66 bus ticketsbus tickets and 33 sandwichessandwiches a week. E. HiroHiro cannot afford to buy 55 bus ticketsbus tickets and 22 sandwichessandwiches a week.

When HiroHiro buys 1010 bus ticketsbus tickets a week hehe cannot afford to buy a sandwichsandwich.

The paradox of value explains that a gallon of gasoline has​ ______ and a gallon of printer ink has​ ______ A. a high price and a high marginal​ utility; a low price and a low marginal utility B. a low price and a low marginal​ utility; a high price and a high marginal utility C. a low price and a high marginal​ utility; a high price and a low marginal utility D. a low total​ utility; a high total utility E. a high price and a low marginal​ utility; a low price and a high marginal utility

a low price and a low marginal​ utility; a high price and a high marginal utility

A budget line is a line that describes limits to consumption possibilities and that depends on a​ consumer's _____ and​ _____ of goods and services. A. ​budget; prices B. ​demand; prices C. ​budget; costs D. ​demand; supply

budget; prices

Sara buys bread and bananas and is maximizing her total utility. If the price of bananas​ rises, Sara will maximize her total utility by​ ______. A. increasing her budget so that she can buy the same quantities B. buying fewer bananas and possibly more bread C. buying less bread and possibly more bananas D. buying more bananas and less bread

buying fewer bananas and possibly more bread

Over the​ years, Americans have spent a smaller percentage of income on food and a larger percentage on cars. There is no paradox of value because​ _______. A. the income elasticity of demand for food is greater than the income elasticity of demand for cars B. food has a low price and a high marginal utility whereas cars have a low marginal utility and a high price C. food has a low price and a low total utility whereas cars have a high total utility and a high price D. the total utility from food and cars are equal E. food has a low price and a low marginal utility whereas cars have a high marginal utility and a high price

food has a low price and a low marginal utility whereas cars have a high marginal utility and a high price

The paradox of value arises when people​ _______. A. get the same marginal utility per dollar from cheap useful goods and useless expensive goods B. spend more on expensive useless goods than on cheap useful goods C. prefer to buy cheap goods rather than expensive goods D. buy so much of a useful good that its price falls

get the same marginal utility per dollar from cheap useful goods and useless expensive goods

Tom will maximize his total utility if he buys the quantities of pasta and milk at which​ ______. A. his marginal utility from the more expensive good is less than his marginal utility from the cheaper good B. he spends all of his budget and his marginal utility from each good is equal C. he spends all of his budget and his marginal utility per dollar for pasta and milk are equal D. his marginal utility from pasta equals his marginal utility from milk

he spends all of his budget and his marginal utility per dollar for pasta and milk are equal

The table shows​ Ben's utility from croissantscroissants. Ben will buy more than one croissantcroissant a day if​ ______. A. the marginal utility he receives from croissantscroissants is positive B. the price of a croissantcroissant rises C. the total utility he receives from croissantscroissants is positive D. his marginal utility per dollar from the first croissantcroissant is greater than the marginal utility per dollar from all the other goods he consumes E. his income falls

his marginal utility per dollar from the first croissantcroissant is greater than the marginal utility per dollar from all the other goods he consumes

Ben will buy no croissantscroissants if​ ______. A. the price of a croissantcroissant rises B. the price of a croissantcroissant falls C. the relative price of a croissantcroissant rises D. his marginal utility per dollar from the first croissantcroissant is less than his marginal utility per dollar from the other goods and services he buys E. the relative price of a croissantcroissant falls

his marginal utility per dollar from the first croissantcroissant is less than his marginal utility per dollar from the other goods and services he buys

When​ Joe's budget​ increases, he will spend the increase in his budget on​ _______. A. normal goods B. essential goods C. inferior goods D. more of all the goods he usually buys

normal goods

Exempting video from data caps is a way of lowering the price of watching a​ video, so a​ person's budget line will​ _______. A. shift inward and be parallel to the original budget line B. not change C. rotates inward D. shift outward and be parallel to the original budget line E. rotate outward

rotate outward

Khalid'sKhalid's burgerburger and magazinemagazine budget is ​$3030 a week. The price of a burgerburger is ​$22 and the price of a magazinemagazine is ​$55. Draw Khalid'sKhalid's budget line and label it. ​>>> Plot the quantity of magazinesmagazines on the x​-axis. Other things remaining the​ same, if the price of a burgerburgerfallsfalls​, Khalid'sKhalid's budget line​ ______. Other things remaining the​ same, if Khalid'sKhalid's budget for burgersburgers and magazinesmagazines increasesincreases​, hishis budget line​ ______. A. does not​ change; does not change B. rotates outwardrotates outward​; shifts outwardshifts outward C. rotates outwardrotates outward​; shifts inwardshifts inward D. rotates inwardrotates inward​; shifts inwardshifts inward E. rotates inwardrotates inward​; shifts outward

rotates outwardrotates outward​; shifts outwardshifts outward

Jane's budget line​ ______. A. rotates outward if her budget increases and the prices of both goods​ don't change B. rotates inward if the prices of both goods double and her budget​ doesn't change C. shifts inward with no change in its slope if the price of one good rises and her budget​ doesn't change D. shifts outward with no change in its slope if her budget increases and the prices of both goods​ don't change

shifts outward with no change in its slope if her budget increases and the prices of both goods​ don't change

Diminishing marginal utility is general tendency for marginal utility to decrease as​ _______. A. the price of the good increases B. preferences change C. the quantity consumed increases D. income increases

the quantity consumed increases

The principle of diminishing marginal utility is the general tendency for marginal utility to decrease as​ ______. A. the quantity of a good consumed decreases B. the quantity of a good consumed increases C. total utility decreases D. the price of a good rises E. the price of a good falls

the quantity of a good consumed increases

1. The graph shows a​ student's budget line in 2000. Assume that between 2000 and​ 2015, the prices of other goods and services and the​ student's budget did not change. Draw the​ student's budget line in 2015. Label it. 2. The change in the budget line occurred because​ _______. A. the relative price of a single song decreased B. the relative price of a single song increased C. the affordable combinations of single songs and other goods and services decreased D. the opportunity cost of a single song increased

the relative price of a single song decreased

A​ consumer's consumption choices are limited by​ _______. A. the​ consumer's income, the prices of the goods and services she​ buys, the goods and services available for​ sale, and her location B. the goods and services available for sale C. her income and her location D. the​ consumer's income and the prices of the goods and services she buys

the​ consumer's income and the prices of the goods and services she buys

A​ consumer's consumption possibilities depend on all of the following items except ​______. A. the quantities of the goods that the consumer can afford B. the​ consumer's preferences C. the​ consumer's budget D. the prices of the goods that the consumer wants to buy

the​ consumer's preferences

The ​utility-maximizing rule is the rule that leads to the greatest total utility from all the goods and services consumed. The rule is to allocate the entire available​ _____ and make the​ _____ equal for all goods. A. ​quantity; prices B. ​quantity; marginal utilities C. ​budget; prices D. ​budget; marginal utility per dollar

​budget; marginal utility per dollar

Utility is the benefit or satisfaction that a person gets from the​ _____ of a good or service. The total utility is the total benefit that a person gets from the​ _____ of a good or service. Total utility​ _____ as the quantity​ _____ increases. A. ​cost; ​cost; decreases; supplied B. ​supply; ​supply; increases; supplied C. ​consumption; ​consumption; increases; consumed D. ​price; ​price; increases; consumed

​consumption; ​consumption; increases; consumed

Diminishing marginal utility is the general tendency for marginal utility to​ _____ as the quantity of a good consumed​ _____. A. ​increase; increases B. ​decrease; increases C. ​decrease; decreases D. ​increase; decreases

​decrease; increases

Diminishing marginal rate of substitution is the general tendency for the marginal rate of substitution to​ _____ as the consumer moves down along the indifference​ curve, _____ consumption of the good measured on the​ x-axis and​ _____ consumption of the good measured along the​ y-axis. A. ​increase; decreasing; increasing B. ​decrease; increasing; decreasing C. ​decrease; decreasing; increasing D. ​increase; increasing; decreasing

​decrease; increasing; decreasing

When Verizon exempts​ ad-sponsored video from data​ caps, the marginal utility per dollar from videos will initially​ _______ the marginal utility per dollar from other​ data, so consumers will watch​ _______ . A. be less​ than; more videos and use less other data B. ​exceed; more videos and use less other data C. be less​ than; fewer videos and use more other data D. ​exceed; fewer videos and use more other data E. ​exceed; the same number of videos and use the same amount of data

​exceed; more videos and use less other data

Consider Donna who buys only two​ goods: gasoline and pasta. As the gasoline price​ falls, Donna's consumption possibilities​ ______, and the relative price of pasta​ ______. A. ​decrease; decreases B. ​decrease; increases C. ​increase; decreases D. ​increase; does not change E. ​increase; increases ​Donna's budget in terms of pasta ▼ increases does not change decreases .

​increase; increases does not change

Total utility​ ______ and marginal utility​ ______ as more of a good is consumed. A. ​diminishes; increases B. ​increases; diminishes C. ​diminishes; diminishes D. ​increases; increases

​increases; diminishes

Marginal utility theory shows us that a rare gem which we value highly has a​ _______ marginal utility and a​ _______ total utility. A. ​large; large B. ​small; small C. ​large; small D. ​small; large

​large; small

Marginal benefit is the​ ______ price that a consumer​ ______ for an extra unit of a good or service when​ ______ utility is maximized. A. ​minimum; must​ pay; total B. ​maximum; is willing to​ pay; marginal C. ​maximum; is willing to​ pay; total D. ​minimum; must​ pay; marginal

​maximum; is willing to​ pay; total