The Quantity of Hamburger That Households Are Willing to Purchase

question 20

Multiple Choice

The quantity of hamburger that households are willing to purchase is predicted to rise if there is:

• A)​a fall in the price of hot dogs
• B)​a fall in the price of hamburger buns
• C)​a rise in the price of onion rings
• D)​a rise in the price of catsup

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Definitions:

Cobb-Douglas Preferences

A utility function used in economics to represent preferences of consumers, characterized by goods being perfect substitutes or complements to some degree.

Utility Function

An expression used in economics to quantify the happiness or satisfaction gained from consuming a set of goods or services.

Consumption Bundle

A combination of different goods and services that a consumer chooses to purchase at a given time.

Quasilinear Preferences

Preferences represented by utility functions where the marginal utility of consumption is constant irrespective of other goods consumed.