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Microeconomics-Quiz 3

Microeconomics-Quiz 3

Q Question 1 Consumer preferences Question 2 A consumer maximizes utility were the Question 3 Utility is determined by an individual's Question 4 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points Sally is allocating her budget between two goods, x and y. If Sally has used up the budget on a combination of x and y for which MUx/Px exceeds MUy/Py, she can increase total utility by buying Question 5 As a consumer allocates income between good A and good B, total utility is maximized when

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1.Selected Answer: D. are individual evaluations of goods and services 2.Selected Answer: C. budget line tangent to an indifference curve 3.Selected Answer: E. tastes and preferences 4.Selected Answer: C. More x and less y 5.Selected Answer: E. marginal utility of A/price of A = marginal of B/price of B