Understanding Marginal Utility and Demand Curves

The video tutorial explores how to maximize total utility with a $5 budget by calculating marginal utility per dollar for chocolate bars and fruit. It examines the impact of changing chocolate prices on marginal utility and quantity demanded, leading to the derivation of a demand curve. The tutorial demonstrates how to calculate marginal utility per dollar for different prices and strategize spending to maximize utility. It concludes with an analysis of total utility and the relationship between price and quantity demanded, providing insights into the demand curve's shape.

What is the primary goal when maximizing total utility with a fixed budget?

• To minimize the number of goods purchased

• To ensure equal spending on all goods

• To maximize the marginal utility per dollar spent

• To spend all the money on one type of good

How does a change in the price of chocolate bars affect the marginal utility per dollar?

• It increases as the price increases

• It remains constant regardless of price changes

• It becomes irrelevant to the decision-making process

• It decreases as the price increases

When chocolate bars are priced at $2, what is the marginal utility per dollar for the first bar?

• 100 points

• 50 points

• 80 points

• 40 points

If the price of chocolate bars increases, what happens to the quantity demanded?

• It decreases

• It increases

• It becomes unpredictable

• It remains the same

What is the total utility achieved when spending $5 with chocolate bars priced at $2?

• 150 total utility

• 270 total utility

• 300 total utility

• 120 total utility

What is the quantity of chocolate bars purchased when the price is $2?

• 4 bars

• 3 bars

• 2 bars

• 1 bar

What does the demand curve represent in this context?

• The relationship between price and supply

• The relationship between price and quantity demanded

• The relationship between supply and demand

• The relationship between utility and quantity

How many points on the demand curve are identified in the video?

• One point

• Two points

• Four points

• Three points

What happens to the demand curve if the price of chocolate bars is lowered?

• The curve shifts to the left

• The curve becomes steeper

• The curve shifts to the right

• The curve becomes flatter

What assumption is made about consumer preferences in the analysis?

• They change with every price change

• They remain constant

• They are irrelevant

• They are unpredictable