1- If Isabelle's marginal utility for pizza is 10 and her marginal utility for salads is 2, then (a) Isabelle will choose to eat five times more salads than pizzas · (b) Isabelle will be ready to exchange five salads for a pizza. (c) Both of the above answers are correct. (d) None of the answers above is not correct.
1- If Isabelle's marginal utility for pizza is 10 and her marginal utility for salads is 2, then (a) Isabelle will choose to eat five times more salads than pizzas · (b) Isabelle will be ready to exchange five salads for a pizza. (c) Both of the above answers are correct. (d) None of the answers above is not correct.
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 1.3P
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Transcribed Image Text:1- If Isabelle's marginal utility for pizza is 10 and her
marginal utility for salads is 2, then
Isabelle will choose to eat five times more
(a)
salads than pizzas
. (b) Isabelle will be ready to exchange five salads for
a pizza.
(c) Both of the above answers are correct.
(d) None of the answers above is not correct.
2- Consider a consumer who consumes two goods,
good 1 and good2. We denote by p1 the price of the
good1 and by p2 the price of the good2. We denote by
Um1 the marginal utility of good 1 for the consumer and
by Um2 its marginal utility of good 2. The quantity of
good 1 that the consumer must give up in order to be
able to consume an additional unit of good 2 is equal to:
(a) -p1 / p2
(b) -p2 / p1
(c) -um1/ um2
-Um2 / Um1.
3-
Consider a consumer who consumes two goods, good 1
and good 2. We denote by q1 his consumption of good 1
and by q2 his consumption of good 2.
Graphically, we measure the quantity of good 1 on the
abscissa and the quantity of good 2 on the order.
Suppose the following two consumption baskets are on
the consumer's budget line: (q1 '; q2') = (9; 1) and (q1 ",
q2") = (4; 56).
What is the slope of the consumer's budget line?
4- Consider a consumer who consumes two goods,
good 1 and good 2. We denote by q1 his consumption of
good 1 and by q2 his consumption of good 2. His
preferences for good 1 and good 2 can be represented
by a utility function u (q1; q2) = Q1/ Q2 What axiom do
consumer preferences violate?
(a) Completeness.
(b) Transitivity.
(c) Monotonicity.
(d) Consumer preferences do not violate any of the
above three axioms
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