Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 32 and...
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 32 and her marginal utility of a burrito is 24. The price of a pizza is $4.
*Round your answer to 2 decimal places.
The price of a burrito is $____.
Homework Answers
ANSWER:
In equilibrium Marginal utility of pizza divided by price of pizza will be equal to marginal utility of burritos divided by price of burrito.
let the price of burrito be x.
therefore, 32 / 4 = 24 / x
8 = 24 / x
x = 24 / 8 = 3
therefore the price of burrito is $3.
In equilibrium, the ratio of the marginal utility of a pizza divided by the price of a pizza must equal the marginal utility of a burrito divided by the price of a burrito. Thus, the price of a burrito must be $2.
Add Answer to:
Lisa consumes only pizzas and burritos. In equilibrium, her
marginal utility of pizza is 32 and...
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 28 and...
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 28 and her marginal utility of a burrito is 21. The price of a pizza is $3. Instructions: Round your answer to 2 decimal places. The price of a burrito is ___?
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility...
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility for pizza and marginal utility for soda. If the price of pizza is $10, the price of soda is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and soda will maximize her utility? Please show your answers in your table by circling the equilibrium marginal utility per dollar for the two goods and units of pizza and...
Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is The prices...
Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is The prices of burritos and pizzas are both 5 and her income is 100. How many Burritos will Ana buy?
QUESTION 7 Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is...
QUESTION 7 Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is : B2Z. The prices of burritos and pizzas are both 5 and her income is 100. How many Burritos will Ana buy?
1. If pizza and burritos are substitutes in consumption and independent in production and if the...
1. If pizza and burritos are substitutes in consumption and independent in production and if the price of pizza decreases, then, ceteris paribus, in the burrito market the demand for burritos will increase and both the equilibrium price of burritos, Pburritos*, and the equilibrium quantity of burrito, Qburritos*, will increase. quantity demanded of burritos will decrease and both Pburritos* and Qburritos* will decrease. supply of burritos will decrease, Pburritos* will increase, and Qburritos* will decrease. demand for burritos will decrease,...
. Fill in the following table, graph marginal and total utility of pizza and the total...
. Fill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions (Pages 508-512) (6 points) Marginal Ubility of of slices Total utility of Marginal utility beer pizzas of pizza 36 38 54 18 a. If you have a budget of $10 and the pizza and beers cost $2 each, what is the consumer optimum? b. What if the price of beer increases to $3, but...
Sue consumes only two goods, food and clothing. The marginal utility on food is 22, and...
Sue consumes only two goods, food and clothing. The marginal utility on food is 22, and the marginal utility on clothing is 9. The price of food is $2.00/unit, and the price of clothing is $1.00/unit. Is Sue maximizing her utility? If not, she is consuming too much of food or clothing?
Marta consumes only goods X and Y and faces the following utility function: U=7 X+4 Y....
Marta consumes only goods X and Y and faces the following utility function: U=7 X+4 Y. The marginal utility for X is MUX=7 and the marginal utility for Y is MUY=4 . The price of X is $10 and the price of Y is $50. Marta has an initial budget of $200. How many of X and Y will Marta buy given her utility function, her budget, and the prices? X= Y= Suppose that the government places a restriction on X...
Jill gets a total utility of 22 from consuming her first 4 pieces of pizza. When...
Jill gets a total utility of 22 from consuming her first 4 pieces of pizza. When she consumes 5 pieces of pizza she gets a total utility of 25. What is the marginal utility of the fifth piece of pizza consumed?
1. Write down the equation of a utility function and draw an indifference curve that corresponds...
1. Write down the equation of a utility function and draw an indifference curve that corresponds to each of the following cases. (a) Carol is always willing to give up 2 pizzas in exchange for 1 additional beer no matter how many pizzas and beers she has in her consumption bundle. (b) Bob always consumes beer and pizza in fixed proportions. Specifically, if Bob has 1 pizza, he consumes precisely 2 beers and additional beers represent no additional utility for...
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility for pizza and marginal utility for soda. If the price of pizza is $10, the price of soda is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and soda will maximize her utility? Please show your answers in your table by circling the equilibrium marginal utility per dollar for the two goods and units of pizza and...
. Fill in the following table, graph marginal and total utility of pizza and the total and marginal utility of beer and answer the following questions (Pages 508-512) (6 points) Marginal Ubility of of slices Total utility of Marginal utility beer pizzas of pizza 36 38 54 18 a. If you have a budget of $10 and the pizza and beers cost $2 each, what is the consumer optimum? b. What if the price of beer increases to $3, but...
1. Write down the equation of a utility function and draw an indifference curve that corresponds to each of the following cases. (a) Carol is always willing to give up 2 pizzas in exchange for 1 additional beer no matter how many pizzas and beers she has in her consumption bundle. (b) Bob always consumes beer and pizza in fixed proportions. Specifically, if Bob has 1 pizza, he consumes precisely 2 beers and additional beers represent no additional utility for...
Most questions answered within 3 hours.
-
Show the rearrangements of the carbon skeleton in the following
carbocations. Note that in some cases...
asked 1 hour ago -
Use a z -Table to find the specified area.
Between the mean and 3.01 deviations from...
asked 1 hour ago -
Consider the following reaction at equilibrium. What will happen
if O2 is added to the reaction?...
asked 2 hours ago -
Based on how much or how little you have noticed in the media,
do you think...
asked 5 hours ago -
I calculate Rosetta Stone’s P/E ratio as 10x prior to a report
about future industry growth....
asked 6 hours ago -
What major physiological changes account for electrodermal
activity (as in during a lie-detector test)?
asked 7 hours ago -
You are going to sell fruits & vegetables at a local
roadside market. List separately and...
asked 8 hours ago -
Hows does water affect the digestion of fats ?
asked 10 hours ago -
A buffer that contains 0.41 M of a base, B and 0.21 M of its
conjugate...
asked 10 hours ago -
Pleaaaaaaaasssssse help me please please it's more important
:((((((((((((((((((((
CASE STUDY
Nissan Company
Nissan Motor Company,...
asked 10 hours ago -
Calculate the concentration of hydronium and hyroxide ions in 1)
2.0 mol/L HNO3 2) 0.5 mol/L...
asked 10 hours ago -
In a loop-the-loop ride a car goes around a vertical, circular
loop at a constant speed....
asked 10 hours ago