ECO 211 HA6

ECO 211 HA6 - 4 hrs psychology 2 hrs economics(note to instructor I had a hard time understanding the tables& formulas given in the textbook the

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Microeconomics 211 Chapter 6: Consumer Choice and Behavioral Economics HA 6 ( #1.3, 1.6, 1.10, 3.2) 1.3) Budget constraint refers to the limited amount of income you have available to spend on goods and services. The rule of equal marginal utility per dollar means that the consumer should make sure that the last dollar spent on a product should give them the same marginal utility. 1.6a) In this instance, I would say you should study 3 hours for each exam, since each hour is equal to only a change in 1 util. The optimal purchase, given the budget constraint of 6 hours is 3 hours of studying per exam. 1.6b) In this situation, I would study twice as long for the psychology exam as I would for the economics exam.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4 hrs psychology, 2 hrs economics. (note to instructor: I had a hard time understanding the tables & formulas given in the textbook, the chapter notes from instructor & even the supplemental lecture. I am usually very competent in anything to do w/ math…but this was TOTALLY confusing.) 1.10) With the information given, we cannot make a decision because we are lacking the information on Mary’s budget constraint and the prices of the corn chips and sodas. 3.2) Consumers pay attention to celebrity endorsements of products because they believe the celebrities are knowledgeable about the products and that if they use the products, they will be seen as fashionable as the celebrities....
View Full Document

This note was uploaded on 01/14/2012 for the course ECO 211 taught by Professor Morvey during the Fall '10 term at Piedmont TC.

Page1 / 2

ECO 211 HA6 - 4 hrs psychology 2 hrs economics(note to instructor I had a hard time understanding the tables& formulas given in the textbook the

This preview shows document pages 1 - 2. Sign up to view the full document.

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