Question

consumers want to do this: maximize savings maximize profit maximize utility maximize social welfare

Answer 1

Answer 1:

Option C (maximize utility). Consumers want to maximize their utility level which depends on the level of consumption of goods of the consumer. The consumer prefers the bundle which maximizes the utility of the consumer.

Answer 2:

Option B (150). Jake will prefer the bundle which gives consumer the highest level of utility and thus given the options the bundle which gives maximum utility is selected.

Answer 3:

Option C (45). The market demand for a product is the sum of the individual quantity demanded of the consumer. Thus, at price level equal to $5, the market demand = 20 + 15+ 10 = 45 units.

Answer 4:

False. Since world price is less than price in the United States, the country will import goods and not export goods.