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# tbch05 - CHAPTER 5 Applying Consumer Theory MULTIPLE CHOICE...

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Chapter 5/Applying Consumer Theory CHAPTER 5 Applying Consumer Theory MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question. Figure 5.1 1) Figure 5.1 shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks assuming he has \$20 to spend on these goods. Which of the following points are on Bobby's price-consumption curve? A) 10 snacks and 20 juices B) 10 snacks and 0 juices C) 10 snacks and 5 juices D) 10 snacks and 15 juices Answer: D Diff: 0 Topic: Deriving Demand Curves 2) Figure 5.1 shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks assuming he has \$20 to spend on these goods. Which of the following points are on Bobby's demand curve for snacks? 79

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Chapter 5/Applying Consumer Theory 3) Figure 5.1 shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. This information could be used to determine 4) Figure 5.1 shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility 5) Figure 5.1 shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. Bobby's demand for snacks is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic. Answer: C Diff: 2 Topic: Deriving Demand Curves 6) As the price of a good rises, the consumer will experience
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tbch05 - CHAPTER 5 Applying Consumer Theory MULTIPLE CHOICE...

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