Economics for Today

Irvin B. Tucker

Chapter 6 Consumer Choice Theory - all with Video Answers

Educators

Chapter Questions

01:51

Problem 1

As an individual consumes more of a given good, the marginal utility of that good to the consumer
a. rises at an increasing rate.
b. rises at a decreasing rate.
c. falls.
d. rises.

Daniel Cisneros

Numerade Educator

01:50

Problem 2

The amount of added utility that a consumer gains from the consumption of one more unit of a good is called
a. incremental utility.
b. total utility.
c. diminishing utility.
d. marginal utility.

Nick Derr

Numerade Educator

01:11

A certain consumer buys only food and compact discs. If the quantity of food bought increases, while that of compact discs remains the same, the marginal utility of food will
a. fall relative to the marginal utility of compact discs.
b. rise relative to the marginal utility of compact discs.
c. rise, but not as fast as the marginal utility of compact discs rises.
d. fall, but not as fast as the marginal utility of compact discs falls.

Anand Jangid

Numerade Educator

06:12

Problem 4

Rational consumers will continue to consume two goods until the
a. marginal utility per dollar's worth of the two goods is the same for the last dollar spent on each good.
b. marginal utility is the same for each good for the last dollar spent on each good.
c. prices of the two goods are equal for the last dollar spent on each good.
d. prices of the two goods are unequal.

Chris Trentman

Numerade Educator

01:27

Problem 5

Assume that a person's consumption of just the right amounts of pork and chicken is in equilibrium. We can conclude that the
a. marginal utility of pork must equal the marginal utility of chicken.
b. price of pork must equal the price of chicken.
c. ratio of marginal cost to price must be the same in both the pork and the chicken markets.
d. ratio of marginal utility to price must be the same for pork and chicken.

Kian Manafi

Numerade Educator

03:12

Problem 6

Assume an individual consumes only milk and doughnuts and has arranged consumption so that the last glass of milk yields 12 utils and the last doughnut 6 utils. If the price of milk is $\$ 1$ per glass and the price of a doughnut is $\$ .50,$ we can conclude that the
a. consumer should consume less milk and more doughnuts.
b. price of milk is too high relative to doughnuts.
c. consumer should consume more milk and fewer doughnuts.
d. consumer is in equilibrium.

Erwin Antoni

Numerade Educator

00:00

Problem 7

Suppose an individual consumes pizza and cola. To reach consumer equilibrium, the individual must consume pizza and cola so that the
a. price paid for the two goods is the same.
b. marginal utility of the two goods is equal.
c. ratio of marginal utility to price is the same for both goods.
d. ratio of the marginal utility of cola to the marginal utility of pizza is 1

Oluwadamilola Ameobi

Numerade Educator