Question

QUESTION 13 Quantity Per Week Total Utility Brook Kate Amy 100 5.0 9.9 147 190 no GN- 400 450 600 1200 1800 2400 3000 3600 4200 4800 5400 32.9 425 575 900 1275 1770 372 520 510 Refer to the above table. Brook's utility schedule shows initially decreasing marginal utility and then increasing marginal utility. increasing marginal utility throughout her entire schedule. Initially increasing marginal utility and then decreasing marginal utility. diminishing marginal utility throughout her entire schedule. QUESTION 14 John is going to spend all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $1. The price of Good Y is $10. If John wants to maximize his utility he should continue to purchase the same amount of Good X and Good Y. increase the consumption of Good X and decrease the consumption of Good Y. decrease the consumption of Good X and increase the consumption of Good Y. decrease the consumption of Good X and decrease the consumption of Good Y.

Answer 1

a) "D"

Brooks utility shows diminishing return through-out her entire schedule. as the marginal utility is continuously declining.

b) "B"

He should increase the consumption of good X and decrease the consumption of good Y.