The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is

Assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n):

a. rightward shift of the supply curve for tobacco. b. upward movement along the supply curve for soybeans. c. rightward shift in the supply curve for soybeans. d. leftward shift in the supply curve for soybeans.

When the price of a commodity rises, we can expect

a. marginal utility of the last unit purchased will rise. b. marginal utility of the last unit purchased will fall. c. marginal utility of the last unit purchased will be unaffected. d. purchases to rise because of the increased marginal utility.