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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.

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 1.3P
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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
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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