Question 1

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-As a consumer eats additional pieces of pizza, total utility will _____.

Accepted Answer

According to the law of diminishing marginal utility, as a consumer eats additional pieces of pizza, the marginal utility will eventually decrease. However, total utility may continue to increase until a point of satiation or dissatisfaction is reached. Therefore, the correct answer is C, that total utility will keep increasing until dissatisfaction sets in. The given information about the demand for noodles is not relevant to this question.

Question 2

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-To economists, feelings such as peace, serenity, religious devotion, and self-esteem are captured in the concept known as _____.

Accepted Answer

The concept that captures feelings such as peace, serenity, religious devotion, and self-esteem is called utility. Utility refers to the satisfaction or happiness that a consumer derives from consuming a good or service. In this scenario, the demand equation includes variables such as income and price of substitute goods, which are indicative of the consumer's utility.

Question 3

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-_____ is a measure of the total satisfaction derived from consuming a quantity of some good or service.

Accepted Answer

Total utility is the measure of the total satisfaction derived from consuming a quantity of some good or service.

Question 4

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-The prices that people are willing to pay for goods and services mostly depend on:

Accepted Answer

The prices that people are willing to pay for goods and services mostly depend on the marginal utility derived from the goods and services. In this scenario, the demand equation is based on the price of noodles, income, and the marginal utility of sauce (P_x). Therefore, the marginal utility derived from the sauce affects the price that people are willing to pay for the noodles.

Question 5

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Suppose you go out with your friend for coffee and donuts at the local donut store. The first donut you eat tastes incredibly good. The second one also tastes pretty good. The third donut seems just okay. With the fourth donut you are turning somewhat green. The fifth donut makes you sick. Your friend, an economist, describes your experience as the principle of:

Accepted Answer

The principle being described in this scenario is the law of diminishing marginal utility, which states that as consumption of a good or service increases, the marginal utility or satisfaction derived from each additional unit decreases. This is evident in the scenario as the first two donuts provided a high level of satisfaction, but the satisfaction decreased with each subsequent donut until it made the person sick. Therefore, the best choice is E, because it accurately describes the principle being demonstrated.

Question 6

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Marginal utility is _____.

Accepted Answer

Marginal utility refers to the extra utility gained from consuming one additional unit of a good or service. It is not always greater than total utility, but it is always positive since consuming an additional unit of a good or service always adds some level of satisfaction or usefulness. Therefore, the correct answer is (C).

Question 7

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-_____ is the change in total utility that occurs because one more unit of a good is consumed or acquired.

Accepted Answer

Marginal utility is the change in total utility that occurs because one more unit of a good is consumed or acquired. The other options are not relevant to the given question.

Question 8

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-If a consumer purchases more of a product, then most likely the marginal utility of _____.

Accepted Answer

This is a basic principle of economics known as the law of diminishing marginal utility. As a consumer purchases more of a product, the satisfaction (or utility) that they receive from each additional unit of that product decreases.

Question 9

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-When attempting to explain why a consumer purchases a Ford automobile instead of a Honda automobile, or a Compaq computer instead of an IBM computer, an economist would assert:

Accepted Answer

Economists believe that consumers make rational choices based on their preferences and budget constraints in order to maximize their utility, which is the satisfaction they derive from consuming goods and services. Therefore, the economist would assert that the consumer is making a decision based on what gives him or her maximum utility.

Question 10

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Total utility is determined by:

Accepted Answer

Total utility is determined by summing the marginal utilities for each successive unit of a product consumed. None of the other options are correct.

Question 11

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____.

Accepted Answer

The additional satisfaction that a consumer receives from one more unit of a good or service is known as marginal utility.

Question 12

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____.

Accepted Answer

When the marginal utility of a product is diminishing relative to the marginal utility of other products, it indicates that the consumer has been purchasing relatively more of the product, leading to a decrease in its additional satisfaction compared to others.

Question 13

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-When economists describe the theory of consumer choice, they

Accepted Answer

The theory of consumer choice asserts that consumers make decisions based on which goods and services can give them the greatest utility within their limited incomes. This means that consumers will choose to allocate their limited resources to the goods or services that give them the most satisfaction or utility. In this scenario, the demand for noodles is influenced by the consumer's income and the price of substitute goods. Therefore, the theory of consumer choice can be used to explain how the consumer's decision-making process is affected by changes in these variables.

Question 14

The table given below depicts the total utility derived from the consumption of a good.Table 7.1
 
-According to Table 7.1, the total utility from consuming all 5 units is _____ utils.

Accepted Answer

The total utility from consuming all 5 units is 55 utils. This is calculated by adding up the utility from each unit, which is given in the table as 11, 12, 13, 14, and 15.

Question 15

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-When the marginal utility derived from a good is negative, total utility is _____.

Accepted Answer

When the marginal utility derived from a good is negative, the total utility is decreasing. This is because the negative marginal utility indicates that each additional unit of the good consumed reduces the total satisfaction or utility derived from the goods. Therefore, the best option would be to consume fewer units of the good to maximize total utility.

Question 16

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Due to the law of diminishing marginal utility, _____.

Accepted Answer

The law of diminishing marginal utility states that as more units of a product are consumed, the satisfaction gained from each additional unit will eventually decrease. Therefore, the first unit of a product offers more satisfaction than the last unit of the same product.

Question 17

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Utility is most closely defined as _____.

Accepted Answer

Utility refers to the satisfaction or happiness that a consumer derives from consuming a particular good or service. Therefore, option D is the correct choice.

Question 18

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-The law of diminishing marginal utility states that:

Accepted Answer

The law of diminishing marginal utility states that as more of a good or service is consumed, the marginal utility derived from it decreases. This means that as a consumer consumes more noodles, the satisfaction derived from consuming each additional unit will decrease.

Question 19

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-_____ is the lack of satisfaction yielded after consuming too much of the same product.

Accepted Answer

The term "disutility" refers to the lack of satisfaction or negative utility that arises from consuming too much of the same product. Therefore, the answer is B. As for the best choice, it is not provided in the given information.

Question 20

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. Assume that P = $8, I = 200, and PS1U1B1xS1U1B0 = $10.
-Total utility is maximized when _____.

Accepted Answer

Total utility is maximized when the marginal utility per dollar spent is equal across all goods, ensuring that the consumer is allocating their budget in the most efficient way possible to maximize satisfaction.

Quiz 7: Demand: Consumer Choice

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -As a consumer eats additional pieces of pizza, total utility will _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -To economists, feelings such as peace, serenity, religious devotion, and self-esteem are captured in the concept known as _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -_____ is a measure of the total satisfaction derived from consuming a quantity of some good or service.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -The prices that people are willing to pay for goods and services mostly depend on:

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -Marginal utility is _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -_____ is the change in total utility that occurs because one more unit of a good is consumed or acquired.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -If a consumer purchases more of a product, then most likely the marginal utility of _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -Total utility is determined by:

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -When economists describe the theory of consumer choice, they

The table given below depicts the total utility derived from the consumption of a good.Table 7.1 -According to Table 7.1, the total utility from consuming all 5 units is _____ utils.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -When the marginal utility derived from a good is negative, total utility is _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -Due to the law of diminishing marginal utility, _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -Utility is most closely defined as _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -The law of diminishing marginal utility states that:

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -_____ is the lack of satisfaction yielded after consuming too much of the same product.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10. -Total utility is maximized when _____.

Quiz 7: Demand: Consumer Choice

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -As a consumer eats additional pieces of pizza, total utility will _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -To economists, feelings such as peace, serenity, religious devotion, and self-esteem are captured in the concept known as _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -_____ is a measure of the total satisfaction derived from consuming a quantity of some good or service.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -The prices that people are willing to pay for goods and services mostly depend on:

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -Marginal utility is _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -_____ is the change in total utility that occurs because one more unit of a good is consumed or acquired.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -If a consumer purchases more of a product, then most likely the marginal utility of _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -Total utility is determined by:

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -If the marginal utility of a product is diminishing relative to the marginal utility of other products, then _____.

Scenario 5.1 The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2Px. Assume that P = $8, I = 200, and Px = $10. -When economists describe the theory of consumer choice, they