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Table 8.3.1

Short Description: A table shows data for total utility from windsurfing and snorkeling. Long Description: The column headings from left to right are hours per month, total utility from windsurfing, and total utility from snorkeling. The row entries are as follows. Row 1. 1, 60, 20. Row 2. 2, 110, 38. Row 3. 3, 150, 53. Row 4. 4, 180, 64. Row 5. 5, 200, 70.

Refer to Table 8.3.1, which sets out Devon's total utility from windsurfing and snorkeling activities. If windsurfing is $10 per hour, snorkeling is $5 per hour, and Devon has $55 to spend, how long will he choose to windsurf and to snorkel?

Devon makes the choice that gives him a consumer equilibrium, which is
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How does utility describe a consumer's preferences?

Utility is
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When Kathryn is at her consumer equilibrium, what combination of goods is she buying?

She is buying
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Max has $35 a day to spend, and he can spend as much time as he likes on his leisure pursuits. Windsurfing equipment rents for $10 an hour, and snorkeling equipment rents for $5 an hour. If Max equalizes the marginal utility per hour from windsurfing and from snorkeling, which of the following situations arises?
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What is key assumption about marginal utility?
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If the marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop, which of the following events will maximize the consumer's utility?

The consumer will buy
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Lucky buys hats for $20, but Lucky will not sell one of her hats for less than $35. How would a behavioural economist describe Lucky's decision?
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