Economics Chapter 19

Which industry here is unlikely to exhibit price discrimination?

Supermarkets

In the news article titled "Men vs Women"...what determinant of demand is most likely involved?

Tastes

Refer to Table 19.3. If Michael has $28 to spend, why will three colas and four pretzels not be optimal?

This combination is not affordable

The point where the budget constraint and an indifference curve are tangent

represents the optimal consumption point

Total utility is maximized when

Marginal utility is zero

Refer to Figure 19.2. The total utility of two apples is

11 utils

Refer to table 19.3. If Michael has $40 to spend on cola and pretzels, what is his maximum utility possible?

174

Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is:

5 utils

Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?

A budget constraint

Refer to Table 19.3. If Michael has $48 to spend on cola and pretzels, what combination should he purchase in order to maximize his utility?

Four colas and four pretzels

The benefit that consumers get when they buy goods at the equilibrium price but were willing to pay more is called

customer surplus

The slope of the budget constraint, when a consumer has reached optimal consumption of two goods, is equal to the:

marginal rate of substitution

If a good had a zero price (i.e. the good was free), a rational person would consume

the good until the marginal utility of the last unit was zero

In table 19.2, diminishing marginal utility occurs:

with all units after the first