Question 1

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Accepted Answer

The correct combination that uses exactly his $20 budget is 2 sandwiches and 6 juice boxes. The calculation is 2 sandwiches * $4/sandwich + 6 juice boxes * $2/juice box = $8 + $12 = $20.

Question 2

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Accepted Answer

The correct combination is 3 sandwiches and 4 juice boxes. 3 sandwiches at $4 each totals $12, and 4 juice boxes at $2 each totals $8. Together, they sum to $20, exactly Podrick's budget.

Question 3

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Accepted Answer

The combination of 10 sandwiches costs $40, which exceeds Podrick's $20 budget.

Question 4

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Accepted Answer

The cost of 3 sandwiches is 3*$4 = $12, and the cost of 5 juice boxes is 5*$2 = $10. Adding these together gives $12 + $10 = $22, which is more than Podrick's $20 budget.

Question 5

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Accepted Answer

The cost of 3 sandwiches and 5 juice boxes is (3*$4) + (5*$2) = $12 + $10 = $22, which exceeds the $20 budget.

Question 6

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Accepted Answer

The answer of Podrick enjoys consuming sandwiches (S) and juice...

Question 7

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Accepted Answer

The answer of Podrick enjoys consuming sandwiches (S) and juice...

Question 8

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Accepted Answer

The cost for 2 sandwiches and 3 juice boxes is (2*$4) + (3*$2) = $8 + $6 = $14, which is less than $20.

Question 9

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Accepted Answer

To maximize utility, consumers allocate their budget in a way that the last dollar spent on each good provides the same marginal utility. Since the price of a sandwich ($4) is twice the price of a juice box ($2), the marginal utility of a sandwich must be twice the marginal utility of a juice box to ensure that the marginal utility per dollar spent is equal across both goods.

Question 10

Podrick enjoys consuming sandwiches (S) and juice boxes (J). Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Accepted Answer

The marginal utility per dollar spent should be equal for both goods. Since the price of a juice box is half that of a sandwich, the marginal utility of a juice box should be half of the marginal utility of a sandwich to maximize utility.

Question 11

Utility maximization is about:

Accepted Answer

Utility maximization refers to the economic principle of obtaining the highest level of satisfaction or benefit (utility) from the consumption of goods and services, given a consumer's budget constraints. This is colloquially known as getting the "most bang for your buck."

Question 12

If Alice's marginal utility per dollar spent is higher on magazines than on baseball tickets and she has spent all of her income, then which of the following is true?

Accepted Answer

Alice should buy more magazines and fewer baseball tickets because the marginal utility per dollar spent on magazines is higher than that on baseball tickets, indicating she can increase her total utility by reallocating her spending in favor of magazines.

Question 13

A consumer maximizes utility when:

Accepted Answer

A consumer maximizes utility when the marginal utility per dollar spent is equal across all goods. This ensures that the consumer is getting the most satisfaction possible from their budget, by allocating it in a way that the last dollar spent on each good provides the same amount of utility.

Question 14

The strategy that gives you as much happiness as possible is:

Accepted Answer

The strategy to maximize happiness is to allocate your budget to purchase goods that provide the highest marginal utility per dollar spent, ensuring the most efficient use of resources for maximum satisfaction.

Question 15

Which of the following is NOT necessary for a consumer to maximize his or her utility?

Accepted Answer

To maximize utility, a consumer does not need to spend the most money on the cheapest good. Instead, utility maximization is achieved when the consumer allocates their income so that the marginal utility per dollar spent is equal across all goods (B and D), and all income is spent (A).

Question 16

Ruxandra's marginal utility from eating her fourth steak in a month is 20 utils. Her marginal utility from eating her fifth salmon fillet is 30 utils. What should Ruxandra do if the current price of a steak is $10 and the price of a salmon fillet is $15?

Accepted Answer

The answer of Ruxandra's marginal utility from eating her fourth...

Question 17

Steven's marginal utility from his tenth movie rental is 1 util, and his marginal utility from his tenth cup of coffee is 4. If the price of a movie rental is $1 and the price of a cup of coffee is $2, what should Steven do?

Accepted Answer

Steven should increase the quantity of coffee that he consumes because the marginal utility per dollar spent on coffee (4 utils/$2 = 2 utils per dollar) is higher than the marginal utility per dollar spent on movie rentals (1 util/$1 = 1 util per dollar).

Question 18

Janet is currently purchasing five donuts and six crepes per week. Her marginal utility from the fifth donut is 72, and her marginal utility from the fifth crepe is 40. If donuts cost $8 and crepes cost $5, what should she do assuming that she still has some of her budget to spend?

Accepted Answer

Janet should buy more donuts because the marginal utility per dollar spent on donuts (72/8 = 9) is higher than that on crepes (40/5 = 8), indicating she gets more utility per dollar from donuts.

Question 19

Use the table Polly's Marginal Utility from Cheese and Sausage. If the current price of cheese is $10, the current price of sausage is $8, and Polly has a budget of $56, what combination of cheese and sausage maximizes her utility?
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Accepted Answer

The answer of Use the table Polly's Marginal Utility from...

Question 20

Use the table Polly's Marginal Utility from Cheese and Sausage. Polly has a budget of $56. If the current price of cheese is $10, the current price of sausage is $8, and she is currently consuming two units of cheese and four units of sausage, how should she change her consumption to increase her total utility?
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Accepted Answer

The answer of Use the table Polly's Marginal Utility from...

Quiz 7: Consumer Behavior

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Utility maximization is about:

If Alice's marginal utility per dollar spent is higher on magazines than on baseball tickets and she has spent all of her income, then which of the following is true?

A consumer maximizes utility when:

The strategy that gives you as much happiness as possible is:

Which of the following is NOT necessary for a consumer to maximize his or her utility?

Ruxandra's marginal utility from eating her fourth steak in a month is 20 utils. Her marginal utility from eating her fifth salmon fillet is 30 utils. What should Ruxandra do if the current price of a steak is $10 and the price of a salmon fillet is $15?

Steven's marginal utility from his tenth movie rental is 1 util, and his marginal utility from his tenth cup of coffee is 4. If the price of a movie rental is $1 and the price of a cup of coffee is $2, what should Steven do?

Janet is currently purchasing five donuts and six crepes per week. Her marginal utility from the fifth donut is 72, and her marginal utility from the fifth crepe is 40. If donuts cost $8 and crepes cost $5, what should she do assuming that she still has some of her budget to spend?

Use the table Polly's Marginal Utility from Cheese and Sausage. If the current price of cheese is $10, the current price of sausage is $8, and Polly has a budget of $56, what combination of cheese and sausage maximizes her utility?

Quiz 7: Consumer Behavior

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses exactly his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses more than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. Which of the following combinations uses less than his $20 budget?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Podrick enjoys consuming sandwiches (S) and juice boxes (J) . Suppose that Podrick has $20 in his budget, the price of a sandwich is $4, and the price of a juice box is $2. If Podrick spends all of his $20 budget and has maximized his utility, which of the following must be true?

Utility maximization is about:

If Alice's marginal utility per dollar spent is higher on magazines than on baseball tickets and she has spent all of her income, then which of the following is true?

A consumer maximizes utility when:

The strategy that gives you as much happiness as possible is:

Which of the following is NOT necessary for a consumer to maximize his or her utility?

Ruxandra's marginal utility from eating her fourth steak in a month is 20 utils. Her marginal utility from eating her fifth salmon fillet is 30 utils. What should Ruxandra do if the current price of a steak is $10 and the price of a salmon fillet is $15?

Steven's marginal utility from his tenth movie rental is 1 util, and his marginal utility from his tenth cup of coffee is 4. If the price of a movie rental is $1 and the price of a cup of coffee is $2, what should Steven do?

Janet is currently purchasing five donuts and six crepes per week. Her marginal utility from the fifth donut is 72, and her marginal utility from the fifth crepe is 40. If donuts cost $8 and crepes cost $5, what should she do assuming that she still has some of her budget to spend?

Use the table Polly's Marginal Utility from Cheese and Sausage. If the current price of cheese is $10, the current price of sausage is $8, and Polly has a budget of $56, what combination of cheese and sausage maximizes her utility? ​

Use the table Polly's Marginal Utility from Cheese and Sausage. If the current price of cheese is $10, the current price of sausage is $8, and Polly has a budget of $56, what combination of cheese and sausage maximizes her utility?