assignment-3

assignment-3 - Econ110 L2 Spring 2011 Homework #3 Due March...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ110 L2 Spring 2011 Homework #3 Due March 24 th , 2011 Thursday before 11:50am in room 2394 1. Multiple choice (5 points each, 25 points total) 1) In the figure above, at point A the consumer is willing to give up ____ pounds of pickles to get one additional pound of olives. A) 8 B) 6 C) 1 1/3 D) 2 2) In the figure above, Sam originally selects his consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that his budget line rotates but it still goes through point A. Sam’s consumption of pickles A) definitely will rise. B) definitely will fall. C) definitely will stay the same. D) could rise, fall, or stay the same.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3) As long as the marginal utility per dollar spent on pizza is greater than the marginal utility per dollar spent on soda, then to maximize utility a consumer will buy A) more soda to equalize the marginal utility per dollar between soda and pizza.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/16/2011 for the course ECON 110 taught by Professor Tan during the Spring '07 term at HKUST.

Page1 / 3

assignment-3 - Econ110 L2 Spring 2011 Homework #3 Due March...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online