Podcast
Questions and Answers
What is the maximum number of cases of soda that Lisa can afford if she buys no movies?
What is the maximum number of cases of soda that Lisa can afford if she buys no movies?
What does any point on the budget constraint line represent?
What does any point on the budget constraint line represent?
If Lisa buys 2 movies, how many cases of soda can she afford according to the budget constraint?
If Lisa buys 2 movies, how many cases of soda can she afford according to the budget constraint?
What is the intercept of the budget constraint on the axis Y?
What is the intercept of the budget constraint on the axis Y?
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At which point can Lisa afford 5 movies if she buys no soda?
At which point can Lisa afford 5 movies if she buys no soda?
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What happens to Lisa's options if her budget increases to $60?
What happens to Lisa's options if her budget increases to $60?
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If Lisa buys 10 cases of soda, how many movies can she afford?
If Lisa buys 10 cases of soda, how many movies can she afford?
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Which of the following statements about Lisa's budget constraint is correct?
Which of the following statements about Lisa's budget constraint is correct?
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What does the downward slope of indifference curves indicate?
What does the downward slope of indifference curves indicate?
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Which statement about indifference curves is true?
Which statement about indifference curves is true?
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What is the implication of two indifference curves intersecting?
What is the implication of two indifference curves intersecting?
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Which characteristic is NOT true about indifference curves?
Which characteristic is NOT true about indifference curves?
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Why are higher indifference curves preferred?
Why are higher indifference curves preferred?
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Which of the following best describes the shape of indifference curves?
Which of the following best describes the shape of indifference curves?
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If point C is preferred to point A, what can be inferred about their positions on the indifference curves?
If point C is preferred to point A, what can be inferred about their positions on the indifference curves?
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What do consumer preferences for more of a good signify in ordinal utility theory?
What do consumer preferences for more of a good signify in ordinal utility theory?
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What does it imply if two indifference curves intersect?
What does it imply if two indifference curves intersect?
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Why do indifference curves bow inward?
Why do indifference curves bow inward?
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What determines a consumer's optimal choice of goods?
What determines a consumer's optimal choice of goods?
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Which statement about indifference curves is incorrect?
Which statement about indifference curves is incorrect?
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If point A has less of both goods compared to point C, what can be inferred?
If point A has less of both goods compared to point C, what can be inferred?
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What happens if a consumer's budget constraint shifts outward?
What happens if a consumer's budget constraint shifts outward?
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How does a consumer's marginal rate of substitution (MRS) affect indifference curves?
How does a consumer's marginal rate of substitution (MRS) affect indifference curves?
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Which property of indifference curves ensures that consumers prefer more to less?
Which property of indifference curves ensures that consumers prefer more to less?
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At which point does consumer optimum occur?
At which point does consumer optimum occur?
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Which point represents the highest level of utility that Lisa can achieve given her budget constraints?
Which point represents the highest level of utility that Lisa can achieve given her budget constraints?
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What relationship does the marginal rate of substitution (MRS) have with the relative price at point C?
What relationship does the marginal rate of substitution (MRS) have with the relative price at point C?
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What happens to Lisa's consumption bundle at point F?
What happens to Lisa's consumption bundle at point F?
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Why might Lisa prefer to think about moving from an indifference curve I1 to I2?
Why might Lisa prefer to think about moving from an indifference curve I1 to I2?
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What characterizes the state at point H in relation to relative price?
What characterizes the state at point H in relation to relative price?
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In ordinal utility theory, which of the following describes Lisa's preferences?
In ordinal utility theory, which of the following describes Lisa's preferences?
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What does the slope of the indifference curve indicate at the point of consumer equilibrium?
What does the slope of the indifference curve indicate at the point of consumer equilibrium?
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What happens to the marginal utility from movies as the number of movies seen in a month increases?
What happens to the marginal utility from movies as the number of movies seen in a month increases?
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What does the total utility curve represent in relation to soda consumption?
What does the total utility curve represent in relation to soda consumption?
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At which unit of apple consumption does total utility start to decline?
At which unit of apple consumption does total utility start to decline?
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What is the marginal utility at the 6th unit of apple consumption?
What is the marginal utility at the 6th unit of apple consumption?
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When total utility is increasing, what can be said about marginal utility?
When total utility is increasing, what can be said about marginal utility?
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What characterizes diminishing marginal utility?
What characterizes diminishing marginal utility?
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What happens to total utility after reaching the 5th unit of apple consumption?
What happens to total utility after reaching the 5th unit of apple consumption?
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What is the marginal utility of the 8th unit of apples consumed?
What is the marginal utility of the 8th unit of apples consumed?
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What does it mean when MUS/PS < MUM/PM for Lisa?
What does it mean when MUS/PS < MUM/PM for Lisa?
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In which scenario is Lisa maximizing her utility?
In which scenario is Lisa maximizing her utility?
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What occurs when the price of a movie falls?
What occurs when the price of a movie falls?
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If Lisa is in row D of the budget constraint, what is her spending behavior?
If Lisa is in row D of the budget constraint, what is her spending behavior?
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What is the result of Lisa decreasing her quantity of soda consumed when MUM/PM > MUS/PS?
What is the result of Lisa decreasing her quantity of soda consumed when MUM/PM > MUS/PS?
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What likely happens to Lisa's consumption if the price of soda decreases?
What likely happens to Lisa's consumption if the price of soda decreases?
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If Lisa is at consumer equilibrium, which of the following statements is true?
If Lisa is at consumer equilibrium, which of the following statements is true?
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How does a fall in the price of soda affect Lisa's utility?
How does a fall in the price of soda affect Lisa's utility?
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