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Question: if a consumer is spending a small portion of his...

Question details

If a consumer is spending a small portion of his or her income on a good, then the demand for the good is likely to be inelastic.

True
False

A consumer is in equilibrium when the slope of his or her indifference curve is equal to his or her budget constraint.

True
False

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.

Figure 7.3

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In Figure 7.3, if the price of one unit of good X and one unit of good Y is $30 and $20, respectively, the consumer's income is _____.

$150
$900
$600
$50
$400

The table below shows the total utility associated with various units of goods X and Y.
Table 7.5

Quantity

Total Utility from X

Total Utility from Y

1

24

85

2

42

130

3

56

160

4

66

185

5

74

200

6

80

210

7

84

215

Refer to Table 7.5. Given that the price of good X is $2 per unit, the price of good Y is $5 per unit, and that the consumer spends a total of $14 on both goods, what is the total utility associated with the utility-maximizing combination?

154
Indeterminate
84
215
172
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