Homework Answers
Q 49. If price of X = 15 and income is 60, then if he invests all money in X, he can buy 4 units of X that gives him a utility of 276. Similarly, if he buys all of Y at the rate of 15 per unit, then he buys 4 units and gets a utility of 357. Therefore he invests the entire amount in Y and buys 0 units of X. Option a is correct.
Q50. Income = 12, Price of X = 1, Price of Y = 2. If he buys 4 units of good X, and 4 units of good Y, then he spends the entire amount and gets the maximum utility of 73+126 = 199.
Add Answer to:
Question 49 2 pts Units of Good Y Units of Total Total Utility Good X Utility 77 148 214 100 21 3 2 192 3 278 357...
Question 8 1 pts The following table shows Total Utility data for products Land M. Assume...
Question 8 1 pts The following table shows Total Utility data for products Land M. Assume that the price of Lis $2 each and the price of Mis $4 each and that the consumer's income is $24. What quantities of Land M should be purchased to maximize total utility? Units of L 1 1 2 3 4 5 Total Utility 9 15 18 20 21 Units Total of M Utility 16 2 28 3 36 4 40 5 42 4...
6. Suppose that the price of good X is $1 and the price of good Y...
6. Suppose that the price of good X is $1 and the price of good Y is $1, and that income is $7. The following tables show the marginal utility schedules for X and Y: Good X: Good Y: Qx MUx Qy MUy 1 15 1 12 2 11 2 9 3 9 3 6 4 6 4 5 5 4 5 3 6 3 6 2 7 1 7 1 How much of good X and how much of good Y should the individual purchase to maximize utility? Explain how you know. (Hint: There are 2 conditions that must be satisfied.)
Cole is about to purchase 4 units of good A and 6 units of good B....
Cole is about to purchase 4 units of good A and 6 units of good B. The price of A is $3 and the price of B is $2. Cole has only $24 to spend. Assume that the marginal utility of the fourth unit of A is 18 and the marginal utility of the sixth unit of B is 6. If Cole wants to maximize utility he should buy less of B and more of A. Cole cannot maximize utility...
A comsumer has the utility function U(x,y)=e^( (y+√x) ^ 1/3 ) where x is the good...
A comsumer has the utility function U(x,y)=e^( (y+√x) ^ 1/3 ) where x is the good in concern and y is the money that can be spent on all other goods(so the price of y is normalized to be 1). The income of this consumer is 100. (a)(10 pts)Derive the demand function of x for this consumer. (b)(5 pts)Calculate the price elasticity of the demand function in (a). Is it true that the absolute value if the elasticity of the...
1. The following total utility schedule (Table 3) of Maria who is consuming goods X and...
1. The following total utility schedule (Table 3) of Maria who is consuming goods X and Y when the price of X is $6 and the price of Y is $30. Maria's income is $144. 2 46 3 62 4 | 74 5 80 6 84 Table 3 Ox 1 TUX 28 MUX 28 Qy 1 TUY 150 MUX 150 2 270 3 360 4 420 7 480 450 470 b. Are these preferences consistent with the law of diminishing...
Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units...
Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he purchases 55 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 60 units of Good X and 105 units of Good Y Calculate the substitution effect Remember to include a negative sign (-) if the effect reduces...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10. Units of the Good Total Utility of X Total Utility of Y 1 2 3 4 5 6 7 8 50 95 135 170 200 225 245 260 400 750 950 1100 1220 1320 1400 1450 a. If Andy is given $65...
4. You spend all your money on goods X and Y. In utility terms, the marginal...
4. You spend all your money on goods X and Y. In utility terms, the marginal cost of spending a dollar on good X is equal to a. The marginal utility of good X b. The marginal utility of good X per dollar C. The marginal utility of good Y d. The marginal utility of good Y per dollar e. The price of good X 5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and...
Q5. Suppose that marginal utility of Good X = 100, the price X is $10 per...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
of Y is $5 per unit. Assuming that the consumer is in equilibrium
and is consuming both X and Y, what must the marginal utility of Y
be?
P12. The following tables
illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Total utility curve A Units of utility Total utility curve B Total utility curve C 0 2 3 4 5 6 Quantity (tomatoes per m...
Total utility curve A Units of utility Total utility curve B Total utility curve C 0 2 3 4 5 6 Quantity (tomatoes per month) 11) In the figure above, diminishing marginal utility is shown by A) total utility curve A. B) total utility curve B. C) total utility curve C. D) all three curves. Quantity of Marginal utility from Quantity of Marginal utility from skiing skiing skating skating 50 1 2 40 70 40 30 20 30 10 12)...
Question 8 1 pts The following table shows Total Utility data for products Land M. Assume that the price of Lis $2 each and the price of Mis $4 each and that the consumer's income is $24. What quantities of Land M should be purchased to maximize total utility? Units of L 1 1 2 3 4 5 Total Utility 9 15 18 20 21 Units Total of M Utility 16 2 28 3 36 4 40 5 42 4...
Cole is about to purchase 4 units of good A and 6 units of good B. The price of A is $3 and the price of B is $2. Cole has only $24 to spend. Assume that the marginal utility of the fourth unit of A is 18 and the marginal utility of the sixth unit of B is 6. If Cole wants to maximize utility he should buy less of B and more of A. Cole cannot maximize utility...
1. The following total utility schedule (Table 3) of Maria who is consuming goods X and Y when the price of X is $6 and the price of Y is $30. Maria's income is $144. 2 46 3 62 4 | 74 5 80 6 84 Table 3 Ox 1 TUX 28 MUX 28 Qy 1 TUY 150 MUX 150 2 270 3 360 4 420 7 480 450 470 b. Are these preferences consistent with the law of diminishing...
Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he purchases 55 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 60 units of Good X and 105 units of Good Y Calculate the substitution effect Remember to include a negative sign (-) if the effect reduces...
4. You spend all your money on goods X and Y. In utility terms, the marginal cost of spending a dollar on good X is equal to a. The marginal utility of good X b. The marginal utility of good X per dollar C. The marginal utility of good Y d. The marginal utility of good Y per dollar e. The price of good X 5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
of Y is $5 per unit. Assuming that the consumer is in equilibrium
and is consuming both X and Y, what must the marginal utility of Y
be?
P12. The following tables
illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Total utility curve A Units of utility Total utility curve B Total utility curve C 0 2 3 4 5 6 Quantity (tomatoes per month) 11) In the figure above, diminishing marginal utility is shown by A) total utility curve A. B) total utility curve B. C) total utility curve C. D) all three curves. Quantity of Marginal utility from Quantity of Marginal utility from skiing skiing skating skating 50 1 2 40 70 40 30 20 30 10 12)...
Most questions answered within 3 hours.
-
Let X be normally distributed with mean μ = 10 and standard
deviation σ = 6....
asked 3 seconds ago -
You're examining some of the tiny printing on one of the newer
twenty-dollar bills. A 1.5...
asked 4 minutes ago -
Discuss several common sources of secondary data coming from
government sources.
asked 7 minutes ago -
This is a basic java program where you convert units using only
loops, control statements and...
asked 7 minutes ago -
A sample survey at a supermarket showed that 204 of 300 shoppers
regularly use cents-off coupons....
asked 52 minutes ago -
1. Find the area under the standard normal curve that lies
outside the interval between z=...
asked 24 minutes ago -
In ________ mode, the interpreter reads the contents of a file
that contains Python statements and...
asked 40 minutes ago -
1.
The second-order rate constant for self-reaction of hydroxyl
radicals
2 OH → H2O + O...
asked 30 minutes ago -
What is the most important factor leading to improved resource
efficiency over the long run?
asked 26 minutes ago -
Defend the effectiveness of teamwork in an organization.
(Use no more than 30 words)
asked 28 minutes ago -
Promotional strategies can assist in moving a product through
the channel of distribution. (a) Briefly explain...
asked 28 minutes ago -
Discuss why new and improved security measures are not enough to
stop online crime, What is...
asked 34 minutes ago