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ECON-1010-A-Introduction to Microeconomics
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Samir consumes apples and bananas and his choice is in consumer equilibrium. If the marginal utility from his last apple is 10, the marginal utility from his last banana is 5, and the price of an apple is $0.50, what is the price of a banana?
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Danny has $12 to spend on two goods: pies and pop. The price of a pie is $4, and the price of a can of pop is $2. What is Danny's utility-maximizing choice?
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Sergio spends his income on beer and bubble gum, and he makes the utility-maximizing choice. If the price of beer is greater than the price of bubble gum, which of the following events occur?
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| Table 8.1.2 |
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Billy buys candy and popcorn. When candy is $0.50 a bag and popcorn is $1 per bag, Billy is at consumer equilibrium. If the price of candy rises to $1 a bag, how does marginal utility theory predict that Billy's buying plans will change?
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| Table 8.1.1 |
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Which of the following variables determine consumer equilibrium?We need to know only the
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If Sean thinks that the choice between going to Olive Garden or Red Lobster is simply too confusing, a behavioural economist will explain that Sean is showing which of the following effects?
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Billy Jean loves to read and she has decided that she will buy all of her books at the bookstore at the outlet mall. One day she is in Chapters and sees a book from the Globe and Mail Best Sellers list that she wants to read and she decides to buy it. Buying the book means that she will not be able to take her friend out for coffee this week. Which of the following concept is an example of Billy Jean's decision?
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Lucy spends all her income on magazines and apps. Both are normal goods. When Lucy's income decreases, and the prices of magazines and apps do not change, which of the following events does marginal utility theory predict?
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