1.The Phillie Phanatic always eats his ballpark frank in a special way; he uses a foot-long hot dog together with precisely half a bun, 1 ounce of mustard, and 2 ounces of pickle relish. He only gains utility/satisfaction from these 4 items, any extra of a single item without the others is worthless.
What can we say about the relationship among these goods for the Phillie Phanatic and the shape of his indifference curve with respect to these goods?
2. Consider a person with convex indifference curves. When she optimally chooses a consumption bundle of a particular amount of fruit on the Y-axis, and vegetables on the X-axis, her marginal rate of substitution equals:
A. 1
B. PV/PF (The price of vegetables divided by the price of fruit)
C. PF/PV (The price of fruit divided by the price of vegetables)
D. 0
3. A consumer has a budget for food (F) and shelter (S). With income M, and prices PF and PS, the budget constraint for this consumer may be represented as:
A. PSS + PFF = M
B. F = M/PF - (PS/PF)S
C. S = M/PS - (PF/PS)F
D. All of the above
1.The Phillie Phanatic always eats his ballpark frank in a special way; he uses a foot-long hot dog together with precisely half a bun, 1 ounce of mustard, and 2 ounces of pickle relish. He only gains utility/satisfaction from these 4 items, any extra of a single item without the others is worthless.
What can we say about the relationship among these goods for the Phillie Phanatic and the shape of his indifference curve with respect to these goods?
2. Consider a person with convex indifference curves. When she optimally chooses a consumption bundle of a particular amount of fruit on the Y-axis, and vegetables on the X-axis, her marginal rate of substitution equals:
A. 1
B. PV/PF (The price of vegetables divided by the price of fruit)
C. PF/PV (The price of fruit divided by the price of vegetables)
D. 0
3. A consumer has a budget for food (F) and shelter (S). With income M, and prices PF and PS, the budget constraint for this consumer may be represented as:
A. PSS + PFF = M
B. F = M/PF - (PS/PF)S
C. S = M/PS - (PF/PS)F
D. All of the above
