Theory of Consumer Behaviour

A consumer's total utility ($TU$) schedule from consuming successive bottles of soft drink is presented in the table below:

Based on the table above, what is the marginal utility ($MU$) derived from consuming the 4th bottle of soft drink?

Match each utility concept on the left with its corresponding mathematical or economic description on the right.

The table below presents the utility schedule for a consumer consuming successive units of commodity $X$:

What is the marginal utility ($MU$) derived from consuming the $4^{\text{th}}$ unit of commodity $X$?

A consumer spends their entire monthly budget of $\text{₦}2,400$ on two commodities, Good $X$ and Good $Y$. The market price of Good $Y$ ($P_y$) is $\text{₦}30$ per unit. At utility-maximizing equilibrium under ordinal utility analysis, the consumer purchases $20$ units of Good $X$ and $40$ units of Good $Y$. What is the magnitude of the Marginal Rate of Substitution of Good $X$ for Good $Y$ ($MRS_{xy}$) at this equilibrium point?

The table below displays a consumer's utility schedule from consuming consecutive cups of tea:

Based on the table, what is the value of $X$ (the marginal utility of the 3rd unit), and at which level of consumption does the consumer reach the point of satiety?

Match each utility condition or stage of consumption on the left with its corresponding mathematical and economic relationship on the right.

The table below presents the total utility schedule for a consumer consuming successive units of commodity $Z$:

If the market price of commodity $Z$ is $\mathbb{N}6$ per unit and $1\text{ util} = \mathbb{N}1$, what is the consumer surplus at the equilibrium level of consumption?

A consumer obtains an average utility ($AU$) of $15$ utils from consuming $4$ units of bottled water. When the $5^{\text{th}}$ unit is consumed, the marginal utility ($MU$) derived is $25$ utils. If consuming the $6^{\text{th}}$ unit brings the consumer's total utility ($TU$) to $96$ utils, what is the average utility ($AU$) per unit, in utils, when $6$ units are consumed?

A consumer purchasing two goods, $X$ and $Y$, attains equilibrium when the marginal utility of Good $X$ ($MU_x$) is $40$ utils and its price ($P_x$) is $\text{₦}10$. If the price of Good $Y$ ($P_y$) is $\text{₦}5$, what is the marginal utility of Good $Y$ ($MU_y$) in utils at consumer equilibrium?

In consumer utility theory, as a consumer moves downward from left to right along a standard, origin-convex indifference curve for two commodities, $X$ and $Y$, how does the Marginal Rate of Substitution ($MRS_{xy}$) behave?

An indifference curve is convex to the origin because the marginal rate of substitution ($MRS_{xy}$) increases as a consumer substitutes commodity $X$ for commodity $Y$ along the curve.

The table below presents the utility schedule of a consumer consuming successive portions of roasted maize:

Based on the table, what is the combined value of $P + Q_m$, and at which unit of consumption does the consumer reach the point of satiety?

Match each specific utility condition or phase of consumer satisfaction listed on the left with its exact mathematical relationship involving Total Utility ($TU$), Marginal Utility ($MU$), or Average Utility ($AU$) on the right.

A consumer allocates a total income of ₦6,000 exclusively to purchase good $X$ and good $Y$. Good $X$ is plotted on the horizontal axis and costs ₦600 per unit, while good $Y$ is plotted on the vertical axis and costs ₦300 per unit. What is the absolute value of the slope of this consumer's budget line?

An equal proportionate increase in a consumer's nominal income and the prices of both goods consumed will cause the budget line to shift outward parallel to its original position.

Under the ordinal utility approach, a consumer optimizes satisfaction subject to a budget constraint when purchasing two commodities, Good $X$ and Good $Y$. Which condition must hold true at this point of consumer equilibrium?

For a normal good, a decrease in price creates substitution and income effects that operate in the same direction, thereby reinforcing an increase in total quantity demanded.

A consumer allocates a fixed income between Good $X$ and Good $Y$. At their current consumption combination, the Marginal Rate of Substitution of $X$ for $Y$ ($MRS_{xy}$) is $3$, while the market price of Good $X$ ($P_x$) is $\text{₦}150$ and the market price of Good $Y$ ($P_y$) is $\text{₦}30$. Assuming strictly convex indifference curves, what adjustment should the consumer make to attain consumer equilibrium under ordinal utility analysis?

When the price of Good X rises, a consumer experiences a substitution effect that reduces consumption of Good X by 6 units, and an income effect that increases consumption of Good X by 2 units. Which of the following statements correctly classifies Good X and describes the overall change in its quantity demanded?

A consumer's maximum willingness to pay for successive packets of milk in a retail market is given in the schedule below:

If the market price of a packet of milk is fixed at ₦200, what is the total consumer surplus (in Naira) enjoyed by the consumer when purchasing 4 packets?