A budget constraint is:   Group of answer choices   a line showing various combinations of goods that are affordable given consumer income.   total income - total expenses.   total utility given consumer choice.   a comparison of total marginal and total utility.

Q: A negative marginal utility implies that the consumer has reached a point of satiation.

A: Total utility, in economics, is defined as the total amount of satisfaction which a consumer…

Q: The law of diminishing marginal utility      A) refers to the fall in additional satisfaction…

A: Marginal Utility refers to the additional satisfaction derived by the consumption of one more unit…

Q: A company offers the following buying options for good x to its customers: For the first 30 units,…

A: Given information Two goods X and Y For first 30 units of X pay full price After that for next 20…

Q: In many cases, it is reasonable to refer to the ________________ as the price   Group of answer…

A: Budget constraint: It represents the different combinations of goods that can be purchased within a…

Q: Diminishing marginal utility refers to the fact that demand declines as income falls. additional…

A: The total utility is the total satisfaction received by the consumer by consuming goods and…

Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing…

A: Law of diminishing marginal utility states that with every additional unit consumption of a goods…

Q: For an individual the Marginal Rate of Substitution for good X and Y is constant and equal to 1 for…

A: The budget constraint of the individual shows the different combinations of two goods an individual…

Q: The rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts amount of one good being substituted for another good and is being used for…

Q: As a result of a decrease in the price of pizza rolls, consumers purchase more pizza rolls and buy…

A: The income impact expresses that when the cost of a decent reductions, maybe the purchaser of the…

Q: Good Y H A B E F C BC2 G BC1 D Good X

A: Indifference curves or IC curves represents combinations of two goods represented on the either axis…

Q: An increase in a consumer's income causes her budget set to encompass […

A: When consumers income increases,more goods would be bought with the same amount of income.

Q: A reduction in the price of Y from OMR 12 to OMR 8 causes a growth in the quantity of C demanded…

A: The initial price of commodity "Y" = OMR 12 Final price of commodity "Y" = OMR 8 Demand for "C"…

Q: commodity. In other words, It is the utility derived from each additional unit. Marginal Utility…

A: Option A Marginal Utility It is the change in total utility which is attained when an additional…

Q: According to the law of diminishing marginal utility total utility will rise at a falling rate as…

A: Utility is described as the overall satisfaction a consumer feels after using a product or service.…

Q: Marginal utility is defined as the increment to total utility that results from the consumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: Economics If a consumer has a utility function of U = x + 2y, which statement is true? The…

A: "In economics, people buy goods in order to maximize there utility/satisfaction. Utility function…

Q: utility is the additional satisfaction gained by consuming of a good.

A: In Economics, Utility is defined as the usefulness or enjoyment of a consumer which he/she gets from…

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: At Budget line:-                     APA+BPB=I where; A and B are two goods  PA= Price of good A PB=…

Q: Explain the consumer's equilibrium within the budget constraint - indifference curve framework

A: Consumer equilibrium is the point of rest, that is, the bundle from which the consumer have…

Q: Martha spends 5 hours of free time exercising and playing music per day.  The table below represents…

A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Q: Coke and Pepsi are perfect substitutes. Initially the price of Coke is higher than the price of…

A: The perfect substitutes are the goods which cannot be used simultaneously and can only be used in…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: Marginal utility is that utility which are consumer get after consuming an additional unit of…

Q: The rules of politics are not always the same as the rules of economics. In discussions of setting…

A: Closing the Washington monument strategy was a strategy which was introduced to divert the…

Q: The rules of politics are not always the same as the rules of economics. In discussions about…

A: It involves fighting against cuts in the budget by shifting cuts, to the most popular(visible)…

Q: MRS is defined as: (a) Amount of good Y given up in exchange for good X such that total utility is…

A: # MRS is referred to be as Marginal rate of substitution.  MRS helps the consumer trade off some of…

Q: The assumption about consumer is that ….............. a)     consumers act in self-interest and do…

A: Consumers as economic agents are subject to certain assumptions in economics.

Q: The slope of which of the following curves is a negative number? A curve that depicts total utility…

A: The answer is - 2. A curve that depicts marginal utility of an individual.

Q: An increase in the price of a good causes Select one: a. none b. An increase in the consumption of…

A: The law of demand indicates the inverse relationship between the price of the good and its quantity…

Q: The concept of diminishing marginal utility with the help of necessary tables and graphs taking a…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: The marginal rate of transformation of y for x represents *         a)the rate at which the consumer…

A: The marginal rate of substitution refers to the rate at which a consumer gives up a good to get an…

Q: Utility Maximization A consumer faces income constraints and has CES preferences of the following…

A: An individual always consumes in such a way so that his total utility can be maximized but a…

Q: he utility theory that describes how much of one market basket is preferred to another is called the…

A: There are two types of approaches in the concept of utility that is qualitative and quantitative.…

Q: A consumer is choosing between magazines and books. Several indifference curves are shown on the…

A: Given Income= $500 Price of books = $10 If consumer spend all his income on books , then he can…

Q: Assume the price of product Y (the quantity of which is on the vertical axis) is $10 and the price…

A: Given price of Product Y = 10 $ Price of Product X = 5 $ Income = 30 $ Therefore Qty of product Y =…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: The law of diminishing marginal / minimal utility indicates that as an individual gets even more a…

Q: Nancy gets a quantity discount on both goods and pays less per units if she buys more. her budget…

A: Explanation:-   Nаnсy  gets  а  quаntity  disсоunt  оn  bоth  gооds  аnd  раys  less  рer  units  if…

Q: Explain the principles, concepts, and theories underlying individual consumers’ behaviour with…

A: Utility is the want satisficing power of a commodity, it differs from person to person and changes…

Q: An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots…

A: Answer: b. budget line pivots from x-intercept to the left An indifference curve shows the…

Q: Question 14: Market pressures continually swing back and forth, driving towards a particular price…

A: When the market moves from the equilibrium towards the disequilibrium market forces always works to…

Q: Several local golf tournaments are coming up and Tommy needs to purchase golf balls in preparation.…

A: Given information: Tommy buys 2 boxes of golf balls at a price of $30 from the local store and 3…

Q: Consumers always wanted to maximize their level of satisfaction  a. budget is equal to income b.…

A: To maximize the level of satisfaction, consumer must spend budget on the item which gives higher…

Q: Using the concept of a numeraire, set out a budget line for good X1 and X2 representing all other…

A: Answer: Given, There are two goods i.e. good X1 and X2 that represent all other goods. Monthly…

Q: If the supply curve for aspirin is perfectly elastic, then a reduction in demand will cause the…

A: The markets have two sides, the demand side, where the buyers, and consumers operate, and the other…

Q: Optimal consumption refers to   Multiple Choice   the mix of products that maximizes total utility…

A: In consumer theory, the consumer has some sort of preference when choosing different goods for…

Q: The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is…

A: Given information:  Price of a=$5  Price of b=$15    MU of a=20    MU of b=?

Q: The substitution effect. Multiple Choice is generally so weak that its effect cannot be predicted.…

A: The price effect includes income effect and substitution effect. It is the summation of two effects…

Q: From the consumer’s viewpoint, which of the following is to get the most total satisfaction or value…

A: Customer satisfaction: The degree to which customers are satisfied with items is known as customer…