Suppose that a consumer purchases two goods X and Y and that the marginal utility of X is MUx, the total utility of X is TUx, the marginal utility of Y is MUy, and the total utility of Y is TU. If the prices of X and Y are Px and Py, respectively, which of the following expressions defines consumer equilibrium?

Table: Marginal utility of apples and bananas and the price per unit Apples Bananas Marginal utility of last unit 15 12 Price per unit $5 $3 The table provided shows Ricardo’s marginal utility of the last unit consumed of apples and bananas and the price of each good. Ricardo has $125 to spend on apples and bananas. He currently buys 10 apples and 25 bananas. Assuming that he remains within his budget constraint, Ricardo should do which of the following to increase his utility?

Assume that good X is a normal good. If the price of good X increases, what will happen?

If the increase in the price of one good decreases the demand for another, then the two goods are

In a given time period, a person consumes more and more of a good or service and, as a result, enjoys each additional unit less and is willing to pay less for each additional unit. This behavior is consistent with the law of

Dana and Robin produce smoothies and pizza. In one hour Dana can make 20 smoothies or 10 pizzas. In one hour Robin can make 18 smoothies or 6 pizzas. Which of the following statements is true?

If the government imposes a tax on the production of cars, which of the following will occur in the market for cars?

A professor hires two aides, assigning them the tasks of reading student papers and of typing lecture notes on a computer. One of the aides, Ben, can read 1 page of a student paper per minute or type 50 words of lecture notes per minute, and the other aide, Ann, can read 3 pages of a student paper per minute or type 60 words of lecture notes per minute. Which of the following statements is true?

At her current level of consumption, a consumer is willing to pay up to $1.50 for a bottle of water and up to $1,500 for a diamond ring because the

Table: Costs and benefits for new construction projects Project Total costs (in millions) Total benefits (in millions) Widening existing highways $100 $80 Building new highways $100 $90 Building a new bridge $100 $140 Building a new tunnel $100 $115 Expanding an existing airport $100 $130 The table above shows the costs and benefits for new construction projects the government is considering. Based on these costs and benefits, which of the construction projects should the government undertake?