Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 6MCQ
To determine
Choose the correct answer from the following options: When Joe's budget increases, he will spend the increase in his budget on ____
- Normal Goods
- Inferior Goods
- More of all the goods he usually buys
- Essential Goods
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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?
26. If we observe that a consumer's budget constraint has shifted inward, we can assume that the
consumer will buy
a. more normal goods and fewer inferior goods
b. fewer normal goods and more inferior goods
C. more normal goods and more inferior goods
d. fewer normal goods and fewer inferior goods
Q43
Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie...
a.
Should buy more cheese and less bread to maximise her utility.
b.
Should buy more bread and more cheese in order to maximise her utility.
c.
Spends too much money on bread and cheese.
d.
Should buy more bread and less cheese in order to maximise her utility.
e.
Is buying currently the utility-maximising amount of bread and cheese.
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- A construction company has built 30 houses so far this year at a total cost to the company of RM7.5 million. If the company builds a 31st house, its total cost will increase to RM7.76 million. Which of the following statements is correct? А. For the first 30 houses, the average cost per house was RM250,000. В. If the company can experience a marginal benefit of RM275,000 by building the 31st house, then the company should build it. C. All of the above are correct. D. The marginal cost of the 31st house, if it is built, will be RM260,000.arrow_forwardGive 5 examples each of inferior goods and normal goodsarrow_forwardAbby's marginal utility per dollar spent on bananas is 15 and her marginal utility per dollar spent on oranges is 10, how should she spend her income? She should purchase fewer oranges and more bananas. She should purchase an equal amount of oranges and bananas. She should purchase more oranges 'and fewer bananas. She should purchase more bananas and oranges.arrow_forward
- Explain the term Shift in consumer preferencesarrow_forward(9) What determines the utility an individual receives from consuming a good? Select one: a. The individual’s own preferences. b. The demand and supply curves for that good. c. The producers conducting customer feedback surveys of that good and the feedback provided. (10) Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price? Select one: a. 23% b. 30% c. 21%arrow_forwardHiro's latte and paperback book budget is $20 a week. The price of a latte is $2 and the price of a paperback book is $5. Choose the statement that is correct. O A. When Hiro spends all his budget on paperback books, he must buy fewer than 4 paperback books a week. O B. When Hiro buys 10 lattes a week he cannot afford to buy a paperback book. O C. Hiro cannot afford to buy 5 lattes and 2 paperback books a week. O D. When Hiro buys 10 lattes, he can afford to buy 2 paperback books. Draw Hiro's budget line and label it. >>> Plot the quantity of paperback books on the x-axis. 11- 10- 9- 8- 7- 6- 5- 4- 3+ 2- 1- 0- Quantity (lattes per week) 0 2 3 4 5 6 7 8 9 10 11 Quantity (paperback books per week) >>> Draw only the objects specified in the question. 1arrow_forward
- 306. Consumer's surplus is the highest in the case of- (A) Necessities (B) Comforts (C) Luxuries (D) Conventional necessitiesarrow_forwardAlong an individual demand curve for food, which one of the following is not held constant? a.The consumer's income b.The consumer's level of utility c.The price of all other goods d.The consumer's utility functionarrow_forward35. If an increase in income causes the quantity demanded of a good to fall, then the goodis:(a) A normal good(b) An inferior good(c) A substitute good(d) A complement goodarrow_forward
- Give examples of goods with high utility and high prices, andgoods with low utility and low prices.arrow_forwardThe mathematical equation that presents the inverse relationship of price and quantity that a consumer is willing and able to buy at a given time, ceteris paribusSingle choice. a. Budget function b. Demand function c. Supply functionarrow_forwardA consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer purchases 3 units of good y, how many units of good x can the consumer purchase? Please round your answer to two decimal places. Answer: Previous page 2028 P Type here to search 01/12/2021arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning