Deck 5: A: Demand

Question 1

In Problem 1, if Charlie's utility function were X⁵_AX_B, if apples cost 50 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

A) 5X_B = 5X_A.
B) X_B = 5X_A.
C) X_B = X_A.
D) X_A = 5X_B.
E) 50X_A + 10X_B = M.

Answer 1

A

Question 2

In Problem 1, if Charlie's utility function were X⁶_AX_B, if apples cost 90 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

A) X_A = 6X_B.
B) X_B = 6X_A.
C) X_B = X_A.
D) 6X_B = 9X_A.
E) 90X_A + 10X_B = M.

Answer 2

D

Question 3

In Problem 13, where x is whips and y is leather jackets, if Kinko's utility function were U(x, y) = min{ 8x, 4x + 16y}, then if the price of whips were $20 and the price of leather jackets were $60, Kinko would demand

A) 6 times as many whips as leather jackets.
B) 5 times as many leather jackets as whips.
C) 3 times as many leather jackets as whips.
D) 4 times as many whips as leather jackets.
E) only leather jackets.

Answer 3

D

Question 4

In Problem 1, if Charlie's utility function were X³_AX_B, if apples cost 60 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

A) 3X_B = 6X_A.
B) X_B = 3X_A.
C) X_B = X_A.
D) X_A = 3X_B.
E) 60X_A + 10X_B = M.

Question 5

In Problem 1, if Charlie's utility function were X⁵_AX_B, if apples cost 70 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

A) 5X_B = 7X_A.
B) X_B = X_A.
C) X_A = 5X_B.
D) X_B = 5X_A.
E) 70X_A + 10X_B = M.

Question 6

Ambrose's brother Anthony has an income of $95 and a utility function U(x₁, x₂) . The price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

A) 22
B) 30
C) 15
D) 16
E) There is not enough information to determine the answer.

Question 7

Ambrose's brother Augustine has an income of $105 and a utility function U(x₁, x₂) . The price of good 1 (nuts) is $5 and the price of good 2 (berries) is $1. How many units of nuts will Augustine demand?

A) 12
B) 16
C) 14
D) 26
E) 30

Question 8

In Problem 1, if Charlie's utility function were X⁶_AX_B, if apples cost 40 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

A) X_B = X_A.
B) 6X_B = 4X_A.
C) X_B = 6X_A.
D) X_A = 6X_B.
E) 40X_A + 10X_B = M.

Question 9

Ambrose's brother Anthony has an income of $205 and a utility function U(x₁, x₂) . The price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

A) 36
B) 42
C) 50
D) 25
E) There is not enough information to determine the answer.

Question 10

In Problem 1, if Charlie's utility function were X⁵_AX_B, the price of apples were p_A, the price of bananas were p_B, and his income were m, then Charlie's demand for apples would be

A) .
B) .
C) 0.20p_Am.
D) .
E) .

Question 11

Ambrose's brother Francis has an income of $60 and a utility function U(x₁, x₂) = . The price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

A) 10
B) 80
C) 4
D) 40
E) There is not enough information to determine the answer.

Question 12

Ambrose's brother Bartholomew has an income of $133 and a utility function U(x₁, x₂) . The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will Bartholomew demand?

A) 45
B) 59
C) 47
D) 49
E) 96

Question 13

Ambrose's brother Anthony has an income of $75 and a utility function U(x₁, x₂) . The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will Anthony demand?

A) 35
B) 21
C) 23
D) 25
E) 48

Question 14

Ambrose's brother Francis has an income of $170 and a utility function U(x₁, x₂) = . The price of good 1(nuts) is $5 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

A) 31
B) 25
C) 45
D) 90
E) There is not enough information to determine the answer.

Question 15

In Problem 13, where x is whips and y is leather jackets, if Kinko's utility function were U(x, y) = min{ 7x, 3x + 12y}, then if the price of whips were $20 and the price of leather jackets were $60, Kinko would demand

A) 4 times as many leather jackets as whips.
B) 3 times as many whips as leather jackets.
C) 5 times as many whips as leather jackets.
D) 2 times as many leather jackets as whips.
E) only leather jackets.

Question 16

In Problem 13, where x is whips and y is leather jackets, if Kinko's utility function were U(x, y) = min{ 6x, 3x + 9y}, then if the price of whips were $20 and the price of leather jackets were $40, Kinko would demand

A) 2 times as many leather jackets as whips.
B) 3 times as many whips as leather jackets.
C) 4 times as many leather jackets as whips.
D) 5 times as many whips as leather jackets.
E) only leather jackets.

Question 17

Ambrose's brother Bartholomew has an income of $114 and a utility function U(x₁, x₂) = . The price of good 1 (nuts) is $4 and the price of good 2 (berries) is $1. How many units of nuts will Bartholomew demand?

A) 26
B) 14
C) 16
D) 12
E) 30

Question 18

In Problem 13, where x is whips and y is leather jackets, if Kinko's utility function were U(x, y) = min{ 7x, 5x + 10y}, then if the price of whips were $20 and the price of leather jackets were $20, Kinko would demand

A) 6 times as many leather jackets as whips.
B) 4 times as many leather jackets as whips.
C) 7 times as many whips as leather jackets.
D) 5 times as many whips as leather jackets.
E) only leather jackets.

Question 19

Ambrose's brother Augustine has an income of $52 and a utility function U(x₁, x₂) . The price of good 1(nuts) is $3 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

A) 25
B) 9
C) 50
D) 15
E) There is not enough information to determine the answer.

Question 20

Ambrose's brother Bartholomew has an income of $109 and a utility function U(x₁, x₂) = . The price of good 1 (nuts) is $4 and the price of good 2 (berries) is $1. How many units of nuts will Bartholomew demand?

A) 12
B) 26
C) 14
D) 16
E) 30

Question 21

In Problem 13, where x is whips and y is leather jackets, if Kinko's utility function were U(x, y) = min{ 5x, 3x + 6y}, then if the price of whips were $20 and the price of leather jackets were $20, Kinko would demand

A) 3 times as many whips as leather jackets.
B) 4 times as many leather jackets as whips.
C) 2 times as many leather jackets as whips.
D) 5 times as many whips as leather jackets.
E) only leather jackets.

Question 22

In Problem 7, suppose that it takes 2 square feet to grow a cockleshell and 5 square feet to grow a silver bell in Mary's garden. If her space had initially been 90 square feet and were increased to 120 square feet,

A) she would only increase her planting of silver bells.
B) she would plant more silver bells and more cockleshells.
C) she would only increase her planting of cockleshells.
D) cockleshells would be an inferior good.
E) she would increase her planting of cockleshells and decrease her planting of silver bells.