Microeconomics Instructor: Jennifer Hanson Summer 2018 Homework Assignment Chapt
ID: 1161522 • Letter: M
Question
Microeconomics Instructor: Jennifer Hanson Summer 2018 Homework Assignment Chapter 7 As you consume more and more of a service, A. your consumer surplus is increasing. B. 1 your consumer surplus is remaining constant. your consumer surplus is decreasing. C. 2.) As a person buys increasing amounts of a good, their consumer surplus A. decreases; increases C. D. increases; increases increases; decreases A person will be maximizing their utility when A. the marginal utility of product A is greater than the price of product A. B. the price of product A is greater than the marginal utility of product A. C. the price of product A the marginal utility of product A. 3.) Jason's cooking is so terrible that Melissa says she will have to be paid in order to even try it. Thus, her marginal utility for Jason's cooking is A. constant. B. increasing. C. positive. D. negative. 4.) 5.) If a restaurant served free steaks, people would consume more and more steaks until their A. marginal utility B. total utility C. consumer surplus D. None of the choices are correct. fell to zeroExplanation / Answer
1.As the quantity of a good approaches the market price and quantity,the consumer surplus declines.
Answer-C
2.MU falls with consumption.
Answer-B
3.A person is maximising utility when MU=Price
Answer-C
4 .MU is negative because the food that Jason cooks is economic bad for her.
Answer-D.
5.Their MU=O because TU is Max when MU=O
Answer-A