The law of diminishing marginal utility helps to

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39.The law of diminishing marginal utility helps to explaina.why people trade.b.the law of demand.c.why the production possibilities frontier is typically bowed-out.d.a and be.all of the aboveANS:D
PTS:1DIF:Difficulty: ModerateNAT:BUSPROG: AnalyticLOC:DISC: Utility and consumer choiceKEY:Bloom's: Comprehension
40.In the Texas A & M study of the "buying" behavior of two white rats, as the "relative price" of one beverage was raised,
PTS:1DIF:Difficulty: ModerateNAT:BUSPROG: AnalyticLOC:DISC: Utility and consumer choiceKEY:Bloom's: ApplicationMSC:Economics 24/741.Suppose a consumer is purchasing Coke (c) and pretzels (p) in quantities such that he is achieving consumer equilibrium. Then the price of Coke increases. Which of the following will be true?
PTS:1DIF:Difficulty: ModerateNAT:BUSPROG: AnalyticLOC:DISC: Utility and consumer choiceKEY:Bloom's: Application42.Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer equilibrium. Then the price of Coke decreases. The consumer will likely __________ her consumptionof Coke and the marginal utility of Coke will __________ while the total utility from Coke will __________.
PTS:1DIF:Difficulty: ChallengingNAT:BUSPROG: AnalyticLOC:DISC: Utility and consumer choiceKEY:Bloom's: Application43.Joe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils. Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece. If the price of crackers increases to four cents, Joe should __________ his consumption of crackers and his marginal utility from crackers will __________ and also __________ his consumption of cheese and his marginal utility from cheese will __________.a.increase; increase; increase; increaseb.increase; increase; decrease; decreasec.increase; decrease; increase; decreased.decrease; increase; decrease; increasee.decrease; increase; increase; decreaseANS:E
PTS:1DIF:Difficulty: ChallengingNAT:BUSPROG: AnalyticLOC:DISC: Utility and consumer choiceKEY:Bloom's: Application

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