It is a measure of satisfaction the consumer derives from consumption of goods and services.
What is utility?
100
Utility experiences this for most ordinary goods as more is consumed.
What is diminishes or diminishing marginal utility?
100
An optimal level of consumption must use all of this.
What is income?
100
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It is the marginal utility when gym visits increases from 4 to 5 visits per week. CLICK HERE
What is 30?
100
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It is the indifference curve with the highest utility. CLICK HERE
What is Curve B?
200
It is the change in total utility generated by consuming one additional unit of that good or service.
What is marginal utility?
200
The optimal consumption bundle must lie on this.
What is the budget constraint?
200
The price of tacos are $1 and the price of hamburgers are $3 and you have $20 to spend. You have decided to purchase 3 hamburgers which means the maximum amount of tacos that you can purchase is this.
What is 11?
200
For most goods, the ____________effect resulting from a price change is stronger than the ____________ effect.
What is substitution and income?
200
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It is the point(s) on Indifference Curve C with the highest utility. CLICK HERE
What are points S, T, U or V or any of the points?
300
It requires that the costs of a consumer's consumption bundle be no more than the consumer's income.
What is a budget constraint?
300
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If the price of potatoes is $2 per pound and the price of clams are $4 per pound, an individual with this budget line must have this income. CLICK HERE
What is $20?
300
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The shift depicted in the graph could be caused by this. CLICK HERE
What is an increase in income or a reduction in the price of good X and Y?
300
Suppose you spend your entire $50 income on music downloads which cost $1 and smart phone apps which cost $2. If you put smart phone apps on the horizontal axis and music downloads on the vertical axis the opportunity cost of one download is ______________ smart phone apps.
What is 2 music downloads?
300
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It is what these indifference curves are examples of. CLICK HERE
What are complementary goods?
400
It is the change in the quantity of a good consumed that results from a change int he consumer's purchasing power due to a change in the price of the good.
What is the income effect?
400
Suppose that your total utility is 10 utils when you consume the 1st cup of coffee and 16 when you consume the second. Given this, you know that consumption of the 3rd cup of coffee will result in your total utility being less than this amount.
What is 22?
400
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The following graph is a demonstration of this. CLICK HERE
What is a price increase of good B?
400
Suppose the price of tacos rises while the price of hamburgers falls. As consumers adjust to this change, the marginal utility of tacos will ____________ while the marginal utility of hamburgers will ___________.
What is rise and fall?
400
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At point A we know this to be true about the marginal rate of substitution (MRS) CLICK HERE
What is equal to the price ratio of rooms to restaurant meals? Or, the price ratio of Px / Py.
500
It is a hypothetical inferior good for which the demand curve slopes upwards.
What is a Giffen good?
500
At the optimal consumption point, suppose the marginal utility of good X is 10 and the price of good X is $5. Also, suppose that the marginal utility of good Y is 22. Given the above information, this is a likely price for good Y.
What is $11?
500
It is equal to: I/py / I/px where I = Income and px = price of good x and py = the price of good y.
What is the slope of the budget line?
500
For a single good analysis, when total utility is maximized, you know this about the value of marginal utility at that level.
What is 0?
500
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(MUx / MUy) is __________ at point X as compared to point Y CLICK HERE