midterm

# midterm - Midterm 1 Practice Problems Econ 1101.01...

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2 Steve’s currently spends his entire income on two goods: cameras and computers. Currently, his marginal utility from consuming one more camera is 6 and the marginal utility from consuming one more computer is 10. Additionally, the prices of cameras are \$300 and the prices of computers are \$600. At his current consumption bundle, a. Steve is consuming the optimal quantity of cameras and computers. b. Steve should be consuming more computers and fewer cameras. c. Steve should be consuming more cameras and fewer computers. d. Steve should not change his consumption since he is spending his full income. Which of the following is a positive economic statement? e.
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## This note was uploaded on 10/10/2011 for the course ECON 1101 taught by Professor Someguy during the Spring '07 term at Minnesota.

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midterm - Midterm 1 Practice Problems Econ 1101.01...

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