9. If people do not have a complete mental picture of total utility for every level of consumption, how can they

find their utility-maximizing consumption choice?

10. What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain

why, if this rule does not hold, the choice cannot be utility-maximizing.

11. As a general rule, is it safe to assume that a change in the price of a good will always have its most

significant impact on the quantity demanded of that good, rather than on the quantity demanded of other

goods? Explain.

12. Why does a change in income cause a parallel shift in the budget constraint?

Critical Thinking Questions

13. Think back to a purchase that you made recently. How would you describe your thinking before you made

that purchase?

14. The rules of politics are not always the same as the rules of economics. In discussions of setting budgets
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