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- Question 13 If the marginal utility of a commodity is zero, then: Total utility of this commodity has reached a maximum. The paradox of value must have been reached. The commodity in question has no utility, i.e. it’s not one that consumers want to use. Total utility for this commodity must be zero also.Camille is at the candy store with Grandma Mary, who offers to buy her $10 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's Grandma Mary buy her? ten lollipops and five candy bars four lollipops and three candy bars three lollipops and four candy bars two lollipop and five candy barsb) Alesandro purchases two goods, X and Y, and the utility gained for the last 3unit purchased of each is 16 utils and 23 utils, respectively. The prices of X and Y are $1 and $1.75, respectively. Is Alesandro in consumer equilibrium? Explain your answer.
- Consider the market gold, if people expect a lower future price of gold. Change in demand? Change in supply? Change in market equlibrium price? Change in market equlibrium quantity? Graph?1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in consuming both kinds of goods is shown in the equation; (Unit of money in thousands of dollars).TU = 10X + 24Y - 0.5X2 - 0.5Y2TU is the total satisfaction in consuming goods X and YX is the number of items X consumedY is the number of items Y consumedThe price of item X is known to be $ 2, the price of item Y is $ 6 and the budget available to buy item X and item Y is $ 44.Question:a. Determine how many goods X and the number of goods Y must be consumed so that the consumer gets maximum total satisfaction. Determine the total satisfaction that can be obtained from consuming item X and item Y.b. If the price of item X drops from $ 2 to $ 1, determine the quantity of item X and the number of items Y must consume to obtain maximum total satisfaction. Determine the total satisfaction that can be obtained from the consumption of item X and item Y. 2. A producer has a total cost function: TC =…Assume that, a consumer has $1200 to spend on two goods, X and Y. If the price of a pair of good X is $20 per unit and the price of good Y is $15 each, which of the following combinations that the consumer can purchase from good X and Good Y?
- What happens to the original budget line if the price of good ? falls to 4$? (i.e., Will there be a change in the slope and/or intercepts of the original budget line? If yes, what are those changes?). Interpret economically how the change in the price of good ? affects the consumption decision of the consumer.If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?If Porsha view 3 glasses of juice as a perfect substitute for one cup of soda and vice versa, what is her marginal rate of substitution between juice and soda?
- ASAP!! ANSWER PLEASE Danish Wali has Rs.70 to spend on apples and bananas and wants to maximize his utility on his purchase. Based on the data in the table: How many apples and bananas should Danish purchase? What is his total utility from the purchase? Does the utility-maximizing rule hold true for his purchase? Explain. Apples Rs.10 Bananas Rs .5 Quantity MU TU Quantity MU TU 0 - - 0 - - 1 28 28 1 12 12 2 24 52 2 10 22 3 20 72 3 8 30 4 16 88 4 6 36 5 12 100 5 4 40 6 8 108 6 2 42 7 4 112 7 0 42 8 0 112 8 -2 40Course: MicroeconomicsConsider a consumer who has income equal to 100 and who faces prices Px = 2 and Py = 1, of 2 goods, X and Y. Consumer is in equilibrium consuming basket (X*, Y*) = (20, 60). If price of Y increases and becomes Py = 2, and income increases and becomes equal to 160, which consumption basket will consumer choose in new situation? Explain and graphFor a decline in the price of X, in the Figure 1 attached SE=........,IE=........,TE=.............. a: 7,10,6 b: 2,3,5 c: 5,3,2 d: 10,5,7
