Question

6. Phi eats a hamburger and becomes sick. At this point: A) Phi's marginal utility is negative. B) Phi's total utility is increasing, but at a decreasing rate. C) Phi's total utility is now negative. D) Phi's total utility is now at a maximum. Use the following to answer questions 7-8: Figure: Bowling and Chinese Buffet Bowling 4 10 12 6 8 Chinese buffet 7. (Figure: Bowling and Chinese Buffet) The price of a Chinese buffet dinner is $10 and an evening of bowling costs $20. Bill has $100/month to spend on these two goods. If Bill wants to go bowling four times this month, he can only eat at his favorite Chinese buffet times this month. A) two B) four C) six D) eight 8. (Figure: Bowling and Chinese Buffet) If the price of a Chinese buffet increases, the budget line will rotate: A) out and become flatter. B) out and have the same slope. C) in and have the same slope. D) in and become steeper.

Answer 1

6.Phi's marginal utility becomes negative when Phi becomes sick after eating hamburgers.

Answer-A

7.

Рe - iо Рьз 20 M 1OD Вс 2 2 8ЬЕЧ Fa xc + Po xc8ь - M I00 20х4 2 LO t O 10D 100 2

Answer-A

8.If the price of buffet increases then budget line rotates to the left, reducing the affordability of buffet.

Answer-D