Consider an individual with preferences over two goods.   This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above

Suppose the marginal utility of a Coke is 15 utils, and its price is $1.50. The marginal utility of a pizza is 20 utils, and its price is $5. To achieve consumer equilibrium, you need to spend

If the price of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?   Blank 1 units of the A good. Blank 2 units of the B good. Blank 3 units of the C good.   The total utility of consuming five units of the B good is Blank 4 utils.   The total utility of consuming three untis of the A good is Blank 5 utils.

What is the answer?

Which of the following statements is true?     Total utility is the extra satisfaction from the consumption of a good or service.     Marginal utility is the amount of satisfaction received from all the units of a good or service consumed.     The law of diminishing marginal utility states that as more of a good or service is consumed total utility decreases.     Consumer equilibrium is a combination of goods and services consumed which maximizes total utility from a given budget.

The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer’s demand for good X at the same two prices of good X (the right panel). The price of good Y is $4.50. When the price of X increases from point S to point R along the demand curve, the substitution effect of the price increase is _____.     −8   −7.5   −6   −9   −10

A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 10 and the marginal utility of Y is 8. The unit price of X is $5 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should

The marginal utility of the last unit of apples consumed is 12, and the marginal utility of the last unit of bananas consumed is 9. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium? Multiple Choice $3 and $4 $4 and $3 $9 and $12 $15 and $10

a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese meals and use the utility maximization conditions to find the demand for Vietnamese food of the typical consumer (keep in mind that since utility is quasi-linear, you can find demand without information about the consumer’s weekly budget). b) Sum across consumers to find the weekly market demand for Vietnamese meals in NYC.

Q: A consumer’s preferences for food (F) and clothing (C) are given by U(F,C) = F0.2C0.8. The  price of food is $4, and the price of clothing is $8. The consumer has an income of $3600.  a) What is the utility maximizing choice of food and clothing?  b) How would the utility maximizing choice change if price of clothing increased to $14? c) Given the answers to the previous parts plot a linear approximation to the demand function  for clothing.