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1) How much of good A and B should the consumer buy to maximize utility? 2) Suppose the consumer's income increased fro...
can you please explain this deeply? thank you Question 7 Consider a consumer with preferences over...
can you please explain this deeply? thank you
Question 7 Consider a consumer with preferences over two goods 1 and 2. Assume that the horizontal axis pertains to the amount of good 1 and the vertical axis pertains to the amount of good 2. Suppose that, given the consumption bundle r = 10 and y = 10, a consumer's MRS (marginal rate of substitution) is equal (in absolute value) to 4. The price of good 1 is $1, the price...
4. A consumer's demand curve for a product is downward sloping because A. total utility falls...
4. A consumer's demand curve for a product is downward sloping because A. total utility falls below marginal utility as more of a product is consumed. B, marginal utility diminishes as more of a product is consumed. C. time becomes less valuable as more of a product is consumed. D. the income and substitution effects precisely offset each other. 5. Consider Janice's consumption of wine and cheese. Suppose that the price of wine she buys is equal to the price...
Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the...
Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price of good A is $2. a. If the price of good B is $4, the price of good C is $3, the price of good D is $1, and the price of all other goods and services is $5, what is the marginal utility of each of the goods Mary is purchasing? b. If Mary has chosen to keep $10 in savings, what...
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
1. Consider the following table, which lists Mary's marginal utility schedule for Good X and Good...
1. Consider the following table, which lists Mary's marginal utility schedule for Good X and Good Y: Given the price of Good X (P) is $10, the price of Good Y (Py) is $3, and Mary's total budget is $59, please answer the following questions. Quantity Marginal Utility Quantity Marginal Utility of (MU) of Good X MU/P of (MU) of Good Y MU/P, Good X Good Y 300 202 13.33 153 105 6.66 8.5 7 5.67 a) Please complete the...
If a consumer is spending a small portion of his or her income on a good,...
If a consumer is spending a small portion of his or her income on a good, then the demand for the good is likely to be inelastic. True False A consumer is in equilibrium when the slope of his or her indifference curve is equal to his or her budget constraint. True False The below figure shows the various combinations of the goods X and Y that yield different levels of utility. Figure 7.3 In Figure 7.3, if the price...
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...
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...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. xi = 4, = 4 b. x1 = 4,=3 c. ri = 2 = 6 d. x = 8,5 = 2 e. None of the above 6. A consumer's preferences are given by the utility function U = . The...
1.Suppose a consumer had a utility function given by: U= 9X + 2Y. If the price...
1.Suppose a consumer had a utility function given by: U= 9X + 2Y. If the price of Good X (Px) is $8 and the price of Good Y is $4then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $32? 2. Suppose an individual had a utility function given by: U=X^4Y^0.6 Calculate this individual's Marginal Rate of Substitution (MRSxy) when they have a bundle with 3 units of Good X and 1.8...
can you please explain this deeply? thank you
Question 7 Consider a consumer with preferences over two goods 1 and 2. Assume that the horizontal axis pertains to the amount of good 1 and the vertical axis pertains to the amount of good 2. Suppose that, given the consumption bundle r = 10 and y = 10, a consumer's MRS (marginal rate of substitution) is equal (in absolute value) to 4. The price of good 1 is $1, the price...
4. A consumer's demand curve for a product is downward sloping because A. total utility falls below marginal utility as more of a product is consumed. B, marginal utility diminishes as more of a product is consumed. C. time becomes less valuable as more of a product is consumed. D. the income and substitution effects precisely offset each other. 5. Consider Janice's consumption of wine and cheese. Suppose that the price of wine she buys is equal to the price...
Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price of good A is $2. a. If the price of good B is $4, the price of good C is $3, the price of good D is $1, and the price of all other goods and services is $5, what is the marginal utility of each of the goods Mary is purchasing? b. If Mary has chosen to keep $10 in savings, what...
1. Consider the following table, which lists Mary's marginal utility schedule for Good X and Good Y: Given the price of Good X (P) is $10, the price of Good Y (Py) is $3, and Mary's total budget is $59, please answer the following questions. Quantity Marginal Utility Quantity Marginal Utility of (MU) of Good X MU/P of (MU) of Good Y MU/P, Good X Good Y 300 202 13.33 153 105 6.66 8.5 7 5.67 a) Please complete the...
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...
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...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. xi = 4, = 4 b. x1 = 4,=3 c. ri = 2 = 6 d. x = 8,5 = 2 e. None of the above 6. A consumer's preferences are given by the utility function U = . The...
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