At a consumer optimum involving goods X and Y, the marginal utility of good X equals 5 utils. The price of good Y is three times the price of good X. What is the marginal utility of good Y?
A. 5.
B. 3.
C. 15.
D. There is not enough information.
Answer: C. 15.
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A friend is currently earning income but does not expect to earn income in the future. When the interest rate rose, I observed him saving less. From this, I can conclude that current consumption is an inferior good for my friend.
Answer the following statement true (T) or false (F)
Refer to the above figure. A price floor of $60 results in
A) a shortage of 100 units. B) a shortage of 200 units. C) a surplus of 100 units. D) a surplus of 200 units.
A realtor in the real estate market is an example of
A. an end user in a matchmaking market. B. an end user in a shared-input market. C. a platform in a shared-input market. D. a platform in a matchmaking market.
Related to the Economics in Practice on p. 67: Consumption of quinoa has been on the rise. Many people put quinoa in their yogurt, which would make yogurt and quinoa ________, and therefore a decrease in the price of yogurt should ________ the demand for quinoa, ceteris paribus.
A. substitutes; decrease B. complements; decrease C. complements; increase D. substitutes; increase