Homework Answers
The right answer should be the third one. The ratio of the marginal utility obtained from consuming a good to the price of the good (marginal utility to price ratio) indicates the satisfaction derived from the last dollar spent on a good or service.
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Question 5 2 p The marginal-utility-to-price ratio is a representation of the: total satisfaction a consumer...
Please help with these questions Question 1 0.8 pts Marginal utility O occurs when a consumer...
Please help with these questions
Question 1 0.8 pts Marginal utility O occurs when a consumer buys more of a good as a result of a relative price change O occurs when total utility declines as consumption increases. O occurs when there is a change in purchasing power as a result of a change in the price of a good. O is the additional satisfaction derived from consuming one more unit of a good or service. is the combination of...
Question 1 2 pts Utility is a hypothetical measure of satisfaction one receives from consuming a...
Question 1 2 pts Utility is a hypothetical measure of satisfaction one receives from consuming a good/service. True False Question 2 2 pts The graph below shows a budget line for someone purchasing cupcakes and tutoring. cupcakes (number of) tutoring (hours) What could cause the inward pivot? income increases income decreases the price of cupcakes increases the price of tutoring increases Question 3 2 pts What would cause the budget line to shift inward in a parallel manner? income increases...
1) If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility...
1) If a consumer is currently maximizing her satisfaction, what will happen to the marginal utility of a good when its price increases? The marginal utility will____ a. Increase, because the consumer will decrease her consumption of the good b. Decrease, because the consumer will increase her consumption of the good c. Decrease, because the consumer will decrease her consumption of the good d. Increase, because the consumer will increase her consumption of the good 2) the fixed cost of...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1)...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
Question 1 a. In the theory of consumer behaviour, several assumptions are made about the nature...
Question 1 a. In the theory of consumer behaviour, several assumptions are made about the nature of preferences. What are these assumptions? llustrate the significance of these assumptions using indifference curves. b. Discuss why the utility is maximised when the marginal utility per additional dollar spent on one good equals the marginal utility per additional dollar spent on the other good. c. Explain the difference between the income effect and the substitution effect of a price decrease. d. Consider the...
The following two schedules show the amounts of additional satisfaction (marginal utility that a consumer would...
The following two schedules show the amounts of additional satisfaction (marginal utility that a consumer would get from successive quantities of products A and B. Instructions: Enter your answers as whole numbers Units of Good A MU of Good A Price of A-56 MUIP for A Units of Good B Mul of Good B Price of B=$1 MUP for B 72 60 . 54 2 42 30 4 30 S524 0 20 7 12 7 38 a. The consumer has...
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to...
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to get the biggest bang for the buck. Utility maximizing rule b as the price of a good drops, consumers have more money to spend on it and other goods Consumer equilibrium The amount of satisfaction gained from consumption of goods and services. d shows the combinations of two items that can be purchased with a limited amount of money. Law of diminishing marginal utility...
MwSt Saleso... Download Loc 1. The change in total satisfaction that experiences from consuming one more unit of a g...
MwSt Saleso... Download Loc 1. The change in total satisfaction that experiences from consuming one more unit of a good is called Open with a. total utility. C. elasticity. b. marginal utility d. diminishing utility. is called 2. As more Big Macs are consumed each day, the marginal utility that a person gets from each additional Big Mac tends to a. rise at a steady rate. b. decrease. c. remain constant. d. accelerate. 3. Suppose a consumer wants to obtain...
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will...
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will purchase more of a good at a lower price, ceteris paribus. Consumers maximize total utility when the marginal utility per dollar spent is equal for all goods consumed. Each successive unit of a good consumed yields less additional utility. Consumers behave rationally when the price of a good equals the marginal utility of the good. 2. Assume the price elasticity of demand for Nike...
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A-...
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A- Marginal utility per dollar spent is maximized for each good B- Marginal utility of each good is maximized C-Marginal utility per dollar spent is the same for all goods D- Average utility per dollar spent is the same for all goods E- Total utility is the same for each good
Please help with these questions
Question 1 0.8 pts Marginal utility O occurs when a consumer buys more of a good as a result of a relative price change O occurs when total utility declines as consumption increases. O occurs when there is a change in purchasing power as a result of a change in the price of a good. O is the additional satisfaction derived from consuming one more unit of a good or service. is the combination of...
Question 1 2 pts Utility is a hypothetical measure of satisfaction one receives from consuming a good/service. True False Question 2 2 pts The graph below shows a budget line for someone purchasing cupcakes and tutoring. cupcakes (number of) tutoring (hours) What could cause the inward pivot? income increases income decreases the price of cupcakes increases the price of tutoring increases Question 3 2 pts What would cause the budget line to shift inward in a parallel manner? income increases...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
Question 1 a. In the theory of consumer behaviour, several assumptions are made about the nature of preferences. What are these assumptions? llustrate the significance of these assumptions using indifference curves. b. Discuss why the utility is maximised when the marginal utility per additional dollar spent on one good equals the marginal utility per additional dollar spent on the other good. c. Explain the difference between the income effect and the substitution effect of a price decrease. d. Consider the...
The following two schedules show the amounts of additional satisfaction (marginal utility that a consumer would get from successive quantities of products A and B. Instructions: Enter your answers as whole numbers Units of Good A MU of Good A Price of A-56 MUIP for A Units of Good B Mul of Good B Price of B=$1 MUP for B 72 60 . 54 2 42 30 4 30 S524 0 20 7 12 7 38 a. The consumer has...
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to get the biggest bang for the buck. Utility maximizing rule b as the price of a good drops, consumers have more money to spend on it and other goods Consumer equilibrium The amount of satisfaction gained from consumption of goods and services. d shows the combinations of two items that can be purchased with a limited amount of money. Law of diminishing marginal utility...
MwSt Saleso... Download Loc 1. The change in total satisfaction that experiences from consuming one more unit of a good is called Open with a. total utility. C. elasticity. b. marginal utility d. diminishing utility. is called 2. As more Big Macs are consumed each day, the marginal utility that a person gets from each additional Big Mac tends to a. rise at a steady rate. b. decrease. c. remain constant. d. accelerate. 3. Suppose a consumer wants to obtain...
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