Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 13, Problem 1MCQ
To determine
Choose the correct answer out of the following options: The consumer's consumption possibilities depends on all of the following except ____
- The price of the goods that consumer wants to buy
- The consumer's budget
- The quantities of the goods that the consumer can afford
- The consumer's preferences
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1. Using the consumer choice theory, explain
how an individual decides what combinations of
different products to buy.
Which of the following defines marginal utility?
a.
the maximum amount of satisfaction from consuming a product
b.
the change in total utility divided by the price of a product
c.
the total satisfaction received from consuming as much of the product that is available for consumption
d.
the additional satisfaction received from consuming one more unit of a product
Quantity
of cola
600
400
300
Quantity
of pizza
200
A consumer has a total budget of $800 to spend on pizza and cola.
1) Find the price of pizza and that of cola at the initial budget line. What is the slope of the initial budget line.
2) If the prices of the two goods remain the same, what is the new budget of the consumer? How does the consumption of the consumer change? What is the new slope of his
budget line?
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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Similar questions
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- Using the consumer choice theory, explain how an individual decides what combination of different products to buy?arrow_forwardExplain how a rational consumer decides which goods to buy. Note: you must discuss the role of utility, utility maximization and budget in this process.arrow_forward21. Which of the following is NOT the goal of the consumer? a. maximize utility b. maximize satisfaction c. be on the highest indifference curve d. spend more income in the current time period than in the futurearrow_forward
- Sara is a teenage artist who has been making paintings based on watercolor, each painting sells for 150 bs and she makes them every week. Sara likes hamburgers and Coca Cola, the price of hamburgers is 20 bs and Coca Cola is 3 bs. Sara would like to consume 3 hamburgers and 6 cokes this week. 1. How useful is this consumer basket? 2. Is the 150 Bs enough to satisfy your tastes? If not enough, how much budget do you need? It asks 1. Graph of the indifference curve and the budget line. 2. curve of the new budget line.arrow_forwardAccording to the law of diminishing marginal utility: a. as you consume less of something, your total utility will decrease. b. as you consume less of something, your marginal utility from consuming that good will increase c. you should never consume more of something if your marginal utility is decreasing. d. If your total utility is increasing as you consume more of something, then your marginal utility must be increasing as well.arrow_forwardEcon 2arrow_forward
- What are the 4 forms of utility? And explain what each one is.arrow_forwardHow can one's choice of purchases/consumption be infuenced by utility or marginal utility?arrow_forwardQ15. Most decisions involve which involves comparing the benefits and costs of choosing a little more or a little less of a good. A. utility B. marginal analysis C. the budget constraint D. consumptionarrow_forward
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