Sophia Microeconomics Unit 2 Challenge 1 Questions with Complete Solutions

Tina must make a decision about the number of bottles of sports drink and how many cases of water she wants to purchase for her soccer practices. Tina decided to buy four cases of water and 16 bottles of sports drink. ...

Tina must make a decision about the number of bottles of sports drink and how many cases of water she wants to purchase for her soccer practices. Tina decided to buy four cases of water and 16 bottles of sports drink. As she waited in line to check out, Tina noticed there was a special display offering five cases of water for the price of four. Tina opted to pick up an additional case of water, even though she might not use it until next week. Tina exhibited the economic principle of __________, because she decided that five cases of water and 16 bottles of sports drink was better than four cases of water and 16 bottles of sports drink. b.) non-satiation Juan is able to list out the pros and cons of each possible bundle based on his personal preferences to help him decide which is ultimately the best bundle. Which of the following economic principles is Juan exhibiting? a.) Completeness Which of the following is the best example of transitivity? c.) Ben preferred Uncle Moe's Family Feedbag and Catering over University Catering. He liked Hob Knob Fine Dining best of all. So he must prefer Hob Knob over University Catering. Which of the following is true using the graph above? c.) Point C is more desirable than points A or B. Paula liked to consume both water and sports drinks during her basketball games, but she always began with water. Knowing her own preferences helped in her decision of how much water versus how much sports drink to purchase. Which of the following choices would be characteristic of the law of diminishing returns for Paula? c.) This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:28:47 GMT -05:00 https://www.coursehero.com/file/66563705/Micro-Unit-2-Challange-1docx/ As Paula drinks more and more bottles of water, she would be more likely to want to trade off a bottle of water for a bottle of sports drink. Using the graph above, which of the following is true concerning Indifference Curves 1 and 2? c.) A consumer would prefer any point on Curve 2 to any points on Curve 1. This preference map shows the indifference curves and various points, based on the possible combinations of refillable water bottles and crackers. Which statement is true, based on the preference map above? b.) Option C is preferable to both options B and D. There are four combinations of key lime pie and raspberry cheesecake, each of which are denoted by a point on the graph below. Which of the following statements is true as it relates to the graph? a.) Point W would yield the least amount of utility. This graph shows the indifference curves for the different bundles of running socks and shoes that Ben can purchase. Ben's current budget constraint would allow him to purchase either the bundle represented by points 1, 2 or 3. Which option should Ben select, and why? c.) Option 3, because it is on a greater indifference curve. Consumers move from Curve 1 to Curve 2 as a result of __________. b.) an increase in the price of burgers This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:28:47 GMT -05:00 https://www.coursehero.com/file/66563705/Micro-Unit-2-Challange-1docx/ The store owner of Speedy Feet raised the price of running shorts. He was wondering how this would affect customer demand. Most customers buy a shirt of some sort to go along with the running shorts, so he is worried that the customers would buy fewer of both the shorts and shirts. Which graph below accurately shows what will happen to the budget constraint as a result of the store owner's prediction? b.) Megan has $50 to spend on refillable water bottles and crackers. This graph shows the budget constraint when the bottles are $7 each on Monday and the budget constraint when the bottles drop to $5 each on Thursday. Which of the following statements would be true if Megan were to wait and purchase the disposable water bottles on Thursday? a.) Megan's consumption of water bottles would increase. The college science fair recently received a $100 donation from the physics professor, who is a proud supporter of the organization. The graph below shows the original budget constraint, BEFORE the professor's generous donation: Which of the following describes the shift in the budget constraint AFTER the $100 donation? b.) It will shift to the right. Susan recently was told that the honor society just received additional funds from the university in order to showcase their academic programs. The chart below represents Susan's initial budget for the honor society, prior to the university's financial assistance: Which point may now be attainable, given the budget increase? c.) D Jackson is planning a banquet to honor the students who have made the Dean's List this semester. He receives a call from an assistant at the office of the Dean of Undergraduate Studies who tells him that the budget for the banquet has been reduced, due to a miscalculation. This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:28:47 GMT -05:00 https://www.coursehero.com/file/66563705/Micro-Unit-2-Challange-1docx/ This is the original budget constraint, before th