Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / A utility-maximizing consumer equalizes marginal utilities per dollar spent across all

A utility-maximizing consumer equalizes marginal utilities per dollar spent across all

   A utility-maximizing consumer equalizes marginal utilities per dollar spent across all
                            goods.

22.              The law of diminishing marginal utility states that total utility increases by smaller and
                            smaller increments as more of a good is consumed.

23.              We expect the marginal utility curve to be downward sloping.

 

24.              Consuming one more of a good increases its marginal-utility-to-price ratio, and
                            consuming one less of the other good lowers its marginal-utility-to-price ratio.

25.              Consumer surplus is the difference between the minimum amount a person would be
                            willing to pay for a good and the amount the person actually paid.

26.              Economists must actually measure the utilities of goods to determine demand.

 

27.              There is a paradox that water has a high marginal utility, yet we value it little, while
                            diamonds have a low marginal utility, while we value them highly.

28.              A consumer purchases just two goods: X and Y. If the price of one good X rises, the
                            consumer buys less of good X and the same amount of good Y.

29.              For a given price, a decrease in demand will decrease consumer surplus.

 

30.              Indifference curves are typically shaped like total utility curves.

 

31.              The water and diamond paradox can be explained with the law of diminishing marginal
                            utility and the comparative availability of water and diamonds.

32.              Moving from one curve to another in an indifference map always increases utility.

 

33.              The budget constraint 12,000 = 2X + 4Y has a slope equal to –2 where Y is on the
                            vertical axis.

34.              A change in a consumer’s feelings about the desirability of a good will result in an altered
                            slope of the budget constraint.

35.              As population of a region increases, the consumer’s demand curve for a product will
                            shift.

Dec 10 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions