the following combinations is on the consumer's budget line? Multiple Choice • 4A and 9B • 5A and 6B • 6A and 6B • 3A and 8B
Rosa received a corgi pillow as a raffle prize; she would have been willing to pay $20 to buy it herself. Based on the endowment effect, we would expect Rosa to be willing to sell the pillow Multiple Choice • for some amount less than $20. • only if she is offered more than $20. • for the $20 she would have been willing to pay for the pillow. • under no circumstances whatsoever.
The table shows an indifference schedule for several combinations of X and Y. Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5 In moving from combination a to b, the consumer Multiple Choice • gets 8 units of X for 2 units of Y. • gets 1 unit of X for 4 units of Y. • gives up 4 units of X for 2 units of Y. • gives up 4 units of X for 1 unit of Y.
Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3. To maximize utility, without spending more money, the consumer should Multiple Choice • purchase less of Y and more of Z. • purchase more of Y and less of Z. • purchase more of both Y and Z. • make no change in the quantities Y and Z.
