1. Microeconomics

Consumer Choice — Quiz

Test your understanding of consumer choice with 5 practice questions.

Practice Questions

Question 1

Given prices $p_X = 4$, $p_Y = 2$ and income $m = 100$, what are the X- and Y-intercepts of the budget line?

Question 2

For the Cobb–Douglas utility function $U(X,Y)=X^{\tfrac{2}{5}}Y^{\tfrac{3}{5}}$, with prices $p_X=5$, $p_Y=1$ and income $m=200$, what are the utility‐maximising demands for $X$ and $Y$?

Question 3

For the quasilinear utility function $U(X,Y)=\ln X + Y$, with prices $p_X=2$, $p_Y=1$ and income $m=10$, what are the Marshallian demands for $X$ and $Y$?

Question 4

The Engel curve for a normal good is generally:

Question 5

Which substitution concept holds utility constant by adjusting income after a price change to isolate the substitution effect?