201-tutorial-6

# 201-tutorial-6 - Econ 201 Tutorial #6 Date: Week of Oct....

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Econ 201 Tutorial #6 Date: Week of Oct. 25-31, 2010 Coverage: Chapter 6.1-6.5 Consumer Choice and Demand Decisions Part I: Multiple choice questions 1. When is total utility at a maximum? A) When marginal utility is at a maximum. B) When marginal utility is zero. C) When marginal utility is equal to total utility. D) When marginal utility is greater than total utility. 2. Assume that George is allocating his budget optimally between two products. If the MU of product X is 40 and its price is \$8, what must be the price of product Y if its MU is 60? A) \$7.50. B) \$12. C) \$16. D) \$40. Use the following to answer questions 3-5: 1

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3. Referring to the figure above, which price combination is consistent with the income constraint shown? A) \$3 a bagel, \$2 a croissant. B) \$2 a bagel, \$2 a croissant. C) \$2 a bagel, \$4 a croissant. D) \$6 a bagel, \$3 a croissant. 4. Referring to the figure above, given this income constraint, if bagels cost \$1.80 each, then croissants must cost: A) \$0.90 each. B)
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## This note was uploaded on 03/19/2012 for the course ECON 201 taught by Professor Ianirvine during the Fall '10 term at Concordia University Irvine.

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201-tutorial-6 - Econ 201 Tutorial #6 Date: Week of Oct....

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