Why does a newspaper dispenser open to a stack of newspapers andessentially “trusts” a consumer to take just one copy whereas asoft drink vending machine does not “trust” consumers and dispensesone can for each purchase?

Describe how marginal utility and demand are related.

Give a brief description of the law of diminishingmarginal utility and use it to explain the downward slope of thedemand curve.

What are the four dimensions of the typical consumer’ssituation?

Explain the utility maximizing rule for two products inwords and using algebra.

What is consumer equilibrium? How is it achieved?

Explain the utility maximizing rule in terms of hot dogs andhamburgers purchased at a ballgame.

Why is it not sufficient to just compare the marginalutility of two goods when maximizing utility?

16. Assume that a consumer purchases a combination ofproducts A and B. The MUa is 5 and the Pa is $5. TheMUb is 6 and the Pb is $6. What should this consumer do tomaximize utility?