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What happened to the quantity of Cups O’ Soup consumed as a result of this price change? What does this result say about the income and substitution effects? Explain.

 Look at the table Utility from Oranges and Starfruit, above. Oranges costs $2 per pound and starfruit costs $5 per pound. The table shows Calvin’s total utility from eating various amounts of oranges and starfruits. Using the Consumer Choice Theory, how many pounds of oranges and starfruit should Calvin eat, if he has $26? Calvin will eat ______ pounds of starfruits

Peter spends all of his income on two goods: tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. Put tacos on the horizontal axis and milkshakes on the vertical axis. The opportunity cost of one taco equals ________ milkshakes.

In the short run the stock of machines and buildings is ______________, but in the long run it is _______________, with the result that the price elasticity of supply tends to be _____________ in the long run.

Common resource goods are similar to:

Suppose the price of a Cup O’ Soup now rises to $2. Using your diagram from the previous question, show the consequences of this change in price. Assume that our student now spends only 30%  of her income on dining hall meals. Label the new optimum as point B. Upload a scan or picture of the  new graph here. Additional upload may be added at the end of the test. You may enter additional explanation using  the next question.  

A competitive firm operating in the short run is maximizing profits and just breaking even (zero profit). Its costs include a fixed license fee of $100 that is imposed by the state and must be paid for as long as the firm is in existence. If the license fee is raised to $150, what should the firm do to maximize profits in the short run?

Use scenario Lola Chiko. First, assume that experimenters and addicts are unable to resell the dose to each other (Imagine for example that she makes them use it in front of her).   The price Lola will charge experimenters per dose is __________

The principle of diminishing marginal utility means that when Sarah eats pizza, her satisfaction from the second slice of pizza is probably:

When Joe watched a television movie, his viewing was ________ because other people ________ able to view the movie at the same time Joe did.