Question 1
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 5 to 7 per week if their price fell from $8 to $6. This illustrates the idea of
◦ consumer surplus.
◦ the law of diminishing marginal utility.
◦ cross-price elasticity of demand.
◦ technical efficiency.
Question 2
The marginal utility of the first cup of coffee that Tom drinks in the morning is worth $2.00. The marginal utility of the 9th cup of coffee he drinks is positive while the marginal utility of the 10th cup of coffee he drinks in the morning is worth $0. This implies that at a price of $0, Tom would drink
◦ zero cups of coffee per morning.
◦ at most 10 cups of coffee per morning.
◦ more than 10 cups of coffee per morning, but the actual number is indeterminate from this information.
◦ an infinite number of cups of coffee each morning.
A graphical representation of the marginal value theorem.
Different sources for 100 calories worth of protein
Coffee will not sober you up. An intoxicated person who drinks coffee will end up being a stimulated
Energy drinks
Before After Coffee
Wood coffee table