1. EQ #3 – AGEC 105 (4 pts in total) Capps - Sept. 11, 2013
Given the following data:
The MU between 3 and 5 wings is ______15 utils__________.
The marginal utility of any good declines with increases in the consumption of that good. This phenomenon is referred to as the law of diminishing marginal utility.
Quantity of Wings
Total Utility
Marginal Utility (MU) 3 60 -- 5 90 ?

2. (a) This diagram represents a(an) iso-utility curve
indifference curve
(b) True or False. 8 pizzas and 2 wings represent the same level of satisfaction as 6 pizzas and 3 wings.
(c) True or False. If we move from curve I1 to I2, total utility decreases.
For a representative consumer, 8 tacos and 2 hamburgers generate the same utility as 4 tacos and 4 hamburgers.
(a) How many tacos must the consumer give up in order to get one more hamburger? -2
(b) What is the technical name associated with this trade-off?
marginal rate of substitution (MRS)
Qpizza A 8 6 I2 B I1
Qwings

3. Random Question
What U.S. president was a successful liquor distributor and owned a distillery? Hint: He also gave the shortest inaugural address on record. George Washington