2.SupposeaconsumerisconsumingamarketbasketwhereMUY =15,MUX =10,PY =$2,andPX =$1.Which ofthefollowingstatementsisTRUE? a.Theconsumerismaximizingutility. b.Theconsumercouldincreaseutilitybygivingup2unitsofgoodXfor1unitofgoodY. c.Theconsumercouldincreaseutilitybygivingup1unitofgoodYfor2unitsofgoodX. d.TheconsumerisreceivingmoremarginalutilityperdollarfromgoodYthanfromgoodX

Answer is C

4. (Figure: Price and Quantity of Vocal Lessons I) Suppose Lizzie and Miranda are the only two customers in the market for voice lessons. Lizzie's demand is OM = 40 - 4P, and Miranda's demand is Ov = 75 - 5P. Which panel represents the market demand for vocal lessons? (a) (b) Price per $15 Price per $15 vocal lesson vocal lesson 10 10 5 5 0 20 60 100 115 140 0 20 60 100 115 140 Quantity of Quantity of vocal lessons vocal lessons (c) (d) Price per $15 - Price per $15 - vocal lesson vocal lesson 10 10 5 5 . D 0 10 30 50 70 0 10 30 50 70 Quantity of Quantity of vocal lessons vocal lessons a. panel (a) b. panel (b) c. panel (d) d. panel (c)6. (Figure: Coffee and Energy Drinks I) Coffee 10 - (cups) 9 U2 1 2 3 4 5 6 7 8 9 10 Energy drinks (cans) Suppose the consumer has $10 to spend on energy drinks and coffee. Which of the following figures represents the consumer's demand curve for energy drinks? (a) (b) Price Price $5 $5 - - D Quantity of 1 2 3 4 5 6 7 8 9 10 Quantity of 1 2 3 4 5 6 7 8 9 10 energy drinks energy drinks (c) (d) Price Price $5 $5 -NOW A - NOW A 0 Quantity of Quantity of 1 2 3 4 5 6 7 8 9 10 energy drinks 1 2 3 4 5 6 7 8 9 10 energy drinks a. panel (d) b. panel (c) c. panel (a) d. panel (b)Use the following to answer questions 16-18: Figure 7-1 Output Total Product curve ABC DE Quantity of Labor 16. In Figure 7-1, average product reaches a maximum at point A) A. B) B. C) D) D