Pat's total utility after eating 99 Reese's Peanut Butter Cups was greater than his total utility after eating

100 Reese's Peanut Butter Cups. Therefore, Pat's marginal utility from the 100

th

peanut butter cup was:

A. positive, but less than one.

B.

positive, but less than his marginal utility for the 99

th

peanut butter cup.

C. zero.

D. negative.

3.As Lynn eats more pizza, we would typically expect her marginal utility from eating pizza to:

4. Assume that Dusty has $30 in income, the price of a loaf of bread is $1.50, and the price of a jar of peanut butter

is $3. Dusty can buy a maximum of ______ loaves of bread or a maximum of

______ jars of peanut butter.

.

5. For two goods, coffee and scones, suppose that MU(coffee)/P(coffee) = 4 and MU(scones)/P(scones) = 3. To

maximize your total utility from these two goods, you should purchase:

6. Consumer surplus measures:

A.

the increase in a buyer's total utility when the buyer purchases additional units of a good.

B. the difference between the quantity demanded and the quantity supplied at a given price.

C. the difference between a buyer's marginal utility from consuming a product and the price actually paid.

D.

the difference between the most a buyer would be willing to pay for a product and the price actually paid.

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