Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. This implies the consumer should purchase more apples and fewer bananas in order to maximize utility
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and bus
and of the performance of the whole national economy."
Refer to Figure b. Kate and Alice are sisters with a very strict mother. The girls are not allowed to watch television during the day when their mother is at work. The mother comes home one day and knows at least one girl was watching the television because it is warm. She sends the girls to their separate bedrooms while she decides what to do. After giving it some thought, she decides to send a message to the naughty girls and offers them the following deal: if they both deny watching TV, they will each be grounded for 3 weeks; if one squeals on the other, but the other denies watching TV, the squealer is grounded for 2 weeks, while the denier is grounded for 10; if they both squeal, each is grounded for 6 weeks. The following payoff matrix illustrates the girls' dilemma, with Kate's
payoff shown in the upper left-hand corner of each cell and Alice's in the lower right-hand corner. What is Alice's dominant strategy?
A. Squeal
B. Deny
C. Alice does not have a dominant strategy.
D. Alice's dominant strategy depends upon what Kate does.
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Which of the following is a reason for the state of Virginia to increase its revenue while the price for vanity plates increases?
A. The demand for vanity plates in Virginia is inelastic. B. The demand for vanity plates in Virginia is elastic. C. The demand for vanity plates in Virginia is equal to 1. D. There is insufficient information to draw a conclusion.
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and increasing?
A. A B. B C. C D. D