Kirk consumes normal goods. If Kirk's income increases and the prices of all goods remain unchanged, his marginal utility from each good will _______ and his total utility will _______.

increase; increase
decrease; decrease
decrease; increase
increase; decrease

Peter likes bagels and pop and spends £10 a week on them. The price of a bagel is £2 and the price of pop is £1 a can. Peter buys 3 bagels and 4 cans of pop. The price of pop increases to £2 a can and now Peter will most likely buy __________ bagels and __________ cans of pop.

3; 2
2; 3
4; 1
5; 0

Patty spends £10 a week on bagels and pop. The price of a bagel is £2 and the price of pop is £1 a can. Patty buys 2 bagels and 6 cans of pop. Her marginal utility from bagels is 20 units. Now the price of a bagel rises to £3 and the price of a can of pop rises to £1.50. Patty now buys __________ bagels and her marginal utility from bagels ____. She buys _________cans of pop and her marginal utility from pop _______.

2; is 20 units; 6; is 10 units
fewer than 2; is 20 units; fewer than 6; is 10 units
fewer than 2; increases; fewer than 6; increases
fewer than 2; decreases; fewer than 6; decreases

Molly buys only paperbacks and donuts and maximizes her utility. When the price of a paperback is £5 and the price of a donut is £1, her marginal utility from paperbacks is 40 units. Her marginal utility from donuts is _______ and her total utility _______.

200 units; 240 units
40 units; 80 units
8 units; cannot be determined from the information given
20 units; 60 units

The figure shows Barbara's budget line. Barbara consumes only milkshakes and juice. When Barbara maximizes her utility, the ratio of _______ utility from milkshakes to _______ utility from juice is ______.

total; total; 1/2
marginal; marginal; 1/2
marginal; marginal; 2
total; total; 2

Tom spends all his income on comics and cola and maximizes his total utility. If the price of a comic is £4 and the price of a can of cola is £1, then the ratio of the ________ is 4.

marginal utility from cola to the marginal utility from comics
marginal utility from comics to the marginal utility from cola
total utility from comics to the total utility from cola
comics to cola

Betty consumes only milkshakes and sandwiches and maximizes her total utility. Suppose that the price of a milkshake doubles and at the same time Betty's income increases such that she can continue to buy the same number of milkshakes. Betty buys _____________ sandwiches and her marginal utility from sandwiches _________.

the same number; remains the same
more; increases
fewer; decreases
more; decreases

Andy spends £30 a week on movies and magazines. The price of a movie is £8, the price of a magazine is £2, and Andy sees 3 movies a week and buys 3 magazines. The price of a magazine increases to £4 and Andy's brother gives him £6 a week so that he can still see 3 movies a week and buy 3 magazines. In this situation, Andy will see _________ movies a week and buy _________ magazines.

fewer than 3; more than 3
more than 3; fewer than 3
3; 3
fewer than 3; fewer than 3

Sam consumes only sandwiches and pop and maximizes his total utility. Suppose that the price of a sandwich falls. At the new consumer equilibrium, Sam substitutes ___________ for ___________. Sam's marginal utility from pop _________ and his marginal utility per dollar spent on sandwiches ____________.

pop; sandwiches; stays the same; stays the same
pop; sandwiches; decreases; increases
sandwiches; pop; increases; decreases
sandwiches; pop; increases; increases

We can explain the paradox of value as follows: The consumer surplus from water, which is cheap, is __________ than the consumer surplus from gold, which is expensive; the total utility from gold is _________ than the total utility from water; and the marginal utility per dollar spent on water __________ the marginal utility per dollar spent on gold.

greater; greater; greater than
greater; less; equals
smaller; less; equals
less; greater; greater than

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