What point of consumer choice is outside the reach of the consumer given her budget? a....
What point of consumer choice is outside the reach of the consumer given her budget?
a. Point A b. Point B c. Point C. d. Point D. e. Points D or C.
Homework Answers
The correct answer is option B.
Reason being that it is the only indifference curve which is outside the reach resulting in inefficiency.
Add Answer to:
What point of consumer choice is outside the reach of the
consumer given her budget?
a....
What point on the graph is where the consumer has optimized her choice of provider services...
What point on the graph is where the consumer has optimized her choice of provider services given her budget? a. Point A b. Point B c. Point C. d. Point D. e. Points B or C.
At what point is the consumer not maximizing her utility? a. Point A b. Point B...
At what point is the consumer not maximizing her utility? a. Point A b. Point B c. Point C. d. Point D. e. Points B or C.
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing...
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing the utility function U (r1, T)= In(xr2), subject to the budget constraint pi 1 + p2 2 900 (a) (3 points) Write out the Lagrangian function for the consumer's problem (b) (6 points) Write out the system of first-order conditions for the consumer's problem (e) (6 points) Solve the system of first-order conditions to find the optimal values of r and r2....
Consumer choice with gift certificate
In the following figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X,
she moves to a new equilibrium at point D. (LO1, LO3, LO6) a. Determine the prices of goods X and Y. b. How many units of product Y could be purchased at point...
4. Suppose that a consumer faces the choice of how many left shoes to buy and...
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
Suppose a typical U.S. consumer devotes his or her transportation budget to the purchase of gasoline...
Suppose a typical U.S. consumer devotes his or her transportation budget to the purchase of gasoline (G) and gas-powered vehicles (V). a. Graph the indifference curves a typical consumer faces. Do not assume these goods are perfect complements. (2 points) b. Use your graph in part (a) to illustrate the effect of an increase the gas price, noting the income and substitution effects on gas and vehicles. (6 points) c. What is the algebraic expression for the cross price elasticity...
of her income in a way that A consumer equilibrium is a situation in which a...
of her income in a way that A consumer equilibrium is a situation in which a consumer has allocated A. some; increases her marginal utility B. all; maximizes her total utility C. all; maximizes her marginal utility D. some; lowers her household budget
2.3 Choice III Consider a consumer whose preference is represented by the utility function where A...
2.3 Choice III Consider a consumer whose preference is represented by the utility function where A 0 and B 0. a) What is the consumer's marginal rate of substitution? b) If the consumer has income m and faces prices p-A and p - B, what are her optimal bundles? (There may be one, or more than one.) Draw a graph that illustrates this situation, including the budget line and the relevant indifference curve(s). c) If the consumer has income m...
THEORY OF CONSUMER CHOICE: BUDGET CONSTRAINT. I need help with problems.
THEORY OF CONSUMER CHOICE: BUDGET CONSTRAINT. I need help with
problems.
In the figure at right, if the budget line is the line DE, the consumer will...
In the figure at right, if the budget line is the line DE, the
consumer will maximize utility at point
A.
B.
B.
G.
C.
C.
D.
A.
IF YOU ARE INTERESTED IN HELPING WITH MORE QUESTIONS WHATS APP
ME @ 13477215500 Will Pay $
In the figure at right, if the budget line is the line DE, the consumer will maximize utility at point O A. B. O B. G. OC. C. OD. A. Quantity of Bagels Quantity of...
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing the utility function U (r1, T)= In(xr2), subject to the budget constraint pi 1 + p2 2 900 (a) (3 points) Write out the Lagrangian function for the consumer's problem (b) (6 points) Write out the system of first-order conditions for the consumer's problem (e) (6 points) Solve the system of first-order conditions to find the optimal values of r and r2....
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
Suppose a typical U.S. consumer devotes his or her transportation budget to the purchase of gasoline (G) and gas-powered vehicles (V). a. Graph the indifference curves a typical consumer faces. Do not assume these goods are perfect complements. (2 points) b. Use your graph in part (a) to illustrate the effect of an increase the gas price, noting the income and substitution effects on gas and vehicles. (6 points) c. What is the algebraic expression for the cross price elasticity...
of her income in a way that A consumer equilibrium is a situation in which a consumer has allocated A. some; increases her marginal utility B. all; maximizes her total utility C. all; maximizes her marginal utility D. some; lowers her household budget
2.3 Choice III Consider a consumer whose preference is represented by the utility function where A 0 and B 0. a) What is the consumer's marginal rate of substitution? b) If the consumer has income m and faces prices p-A and p - B, what are her optimal bundles? (There may be one, or more than one.) Draw a graph that illustrates this situation, including the budget line and the relevant indifference curve(s). c) If the consumer has income m...
THEORY OF CONSUMER CHOICE: BUDGET CONSTRAINT. I need help with
problems.
In the figure at right, if the budget line is the line DE, the
consumer will maximize utility at point
A.
B.
B.
G.
C.
C.
D.
A.
IF YOU ARE INTERESTED IN HELPING WITH MORE QUESTIONS WHATS APP
ME @ 13477215500 Will Pay $
In the figure at right, if the budget line is the line DE, the consumer will maximize utility at point O A. B. O B. G. OC. C. OD. A. Quantity of Bagels Quantity of...
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