1.Suppose that U = U(P, M), where P and M are peanuts and marshmallows. The marginal utility of marshmallows, MU_M, is given by:

U(P, M) M.

U(P, M)/M.

P/M.

P + M.

2.Suppose that the demand and supply curves for green peas are given by Q^D = 10 - 8P and Q^S = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____.

is in equilibrium; remain unchanged

has excess demand of 3,000 pounds; rise

has excess demand of 5,000 pounds; rise

has excess supply of 1,000 pounds; fall