1. Microeconomics

Consumer Theory — Quiz

Test your understanding of consumer theory with 5 practice questions.

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Practice Questions

Question 1

Which homogeneity property does the expenditure function $e(p_x,p_y,u)$ satisfy?

Question 2

Which concavity property does the expenditure function $e(p_x,p_y,u)$ satisfy with respect to prices?

Question 3

For perfect complements with utility $U(x,y)=\min(x,y)$, prices $p_x$, $p_y$, and target utility $u$, what is the Hicksian (compensated) demand for good X?

Question 4

Given quasi-linear utility $U(x,y)=\ln(x)+y$ and prices $p_x$, $p_y$, what is the Hicksian demand for X?

Question 5

Roy’s identity expresses Marshallian demand $x(p_x,p_y,I)$ in terms of the indirect utility function $V(p_x,p_y,I)$. Which formula is correct?