Suppose Ben has preferences over food and clothes, denoted F and C. His preferences are typical. Choose the false statement. O At his chosen bundle, MRSFC is equal to the relative price between food and clothes. O At his chosen bundle, MUP is equal to MUC. O If the price of food were to decrease, he will demand more food. If we gave him more clothes, his utility will increase.

Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M, S) = M2/3S1/3 and his income is m. The price of Chicken McNuggets is p, and the price of Szechuan sauce is 1. d. Use the equation from part (c) and the budget constraint from part (a) to find Rick’s demand for each of the two goods. e. Suppose m=100 and p=1. How much of each good does Rick consume? Draw a graph showing Rick’s budget constraint and indifference curve passing through his chosen consumption bundle. f. Suppose m=100 and p=2. How much of each good does Rick consume? On the same graph from part (e), show Rick’s budget constraint and indifference curve passing through his new chosen consumption bundle.

Jose has utility for UC Davis sporting events equal to U = S²B where S is the number of Soccer games and B is the number of baseball games. Baseball games cost $5 per game and Soccer games cost $10 per game. How many soccer games will Jose attend in his optimal bundle for ever baseball game? In other words, in his optimal bundle, S = xB. Second, if Jose has $90 to spend on sports, how many baseball games will he attend? In other words, Jose will attend baseball games in his optimal bundle. Third, if Jose's budget increases to $180, now how many baseball games will he attend? Jose will attend baseball games. Fourth, for Jose, is baseball a normal or inferior good? Enter the word "normal" or "inferior" here

Suppose Jeff has a perfect substitute preferences for watching movies (M) and TV (T) shows. Jeff's MRSTM is such that he is always indifferent between watching one movie and five TV shows independent of the amount of goods consumed. Which of the following statements is true? If Jeff had a choice between 1 movie and 1 TV show before bed, he would choose to watch the movie. If Jeff has already watched 3 movies and no TV shows, then he would prefer to watch a TV show next. He is indifferent between watching 1 TV show or 1 movie before bed. Jeff would prefer watching 2 TV shows and no movies over watching 2 Movies and no TV shows.