Reference no: EM13690177

1. For the next several questions, refer to the table regarding Magazines and eBooks. Fill out the Marginal Utility column for magazines. What is the marginal utility of the 4th magazine?

A) 2 utils

B) 10 utils

C) 30 utils

D) 35 utils

E) 130 utils

F) 140 utils

2. Fill out the Marginal Utility column for eBooks. What is the marginal utility of the 5th eBook?

A) 580 utils

B) 575 utils

C) 115 utils

D) 25 utils

E) 5 utils

F) 0 utils

3. Assuming that the price of a magazine is $2 and the price of an eBook is $5, fill out both Marginal utility per dollar columns. If the consumer has $19, the rational consumer will purchase

A) 4 magazines and 2 books.

B) 2 magazines and 3 books.

C) 7 magazines and 1 book.

D) 0 magazines and 4 books.

4. If the price of a magazine is $2 and the price of an eBook is $5 and the consumer has $33, the rational consumer will purchase

A) 2 magazines and 2 books.

B) 2 magazines and 3 books.

C) 5 magazines and 6 books.

D) 4 magazines and 5 books.

5.  Suppose we do not know the prices now, but preferences (utilities) are the same and we know the consumer final consumption choice. If the consumer's equilibrium consists of 4 magazines and 4 books, then we know that

A) the price of a magazine is 5 times more than the price of a book.

B) the price of a magazine is 6 times more than the price of a book.

C) the price of a book is 5 times more than the price of a magazine.

D) the price of a book is 3 times more than the price of a magazine.