Question 3     The equilibrium condition which maximizes the satisfaction of a consumer is given by:             P X = P Y             MU X = MU Y             MU X / Q X = MU Y / Q Y             None of the suggested options             MU X / P X = MU Y / P Y

26. The set of all the alternatives a consumer can afford is shown by a) an indeffirence curve b) a budget line c) a supply curve d) a tradeoff

Question 22: Kathy gets utility from three things: the number of flowers in her local park (F), reading books in this park (R), and eating sushi (S). Four utility functions that might describe Kathy's preferences are shown below. In each case, discuss whether reading in the park (R) is non-essential and whether reading (R) and the number of flowers in the park (F) are weak complements. [medium] (a) U(F, R, S) = 2FR+S (b) U(F, R, S) = /2FR+S (c) U(F, R, S) = (V2FR)S (d) U(F, R, S) = v2F + RS

A 5 percent decrease in the price of avocados leads to a 20 percent increase in the quantity of salsa demanded. It appears that:   Question 26 options:   Salsa and avocados have a secret relationship that no one (except for the bananas) knows about.   salsa is a complement good to avocados.   salsa is a substitute good to avocados.   there is no relationship between demand for salsa and demand for avocados.