A consumer has income of $15,000. Masks costs $35 per mask, and sanitizers costs $70 per bottle. Under what circumstance(s) if any can an increase in the price of sanitizers induce a consumer to buy more of that good? Explain. Explain how a consumer should allocate expenditure in order to achieve maximum satisfaction and analyse how a rise in income might affect that allocation.

Q: In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: A consumer has the following budget line:

Q: The "useful" are hypothetical units of measurement with which we suppose it can be measure the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the price of a dress increases to $200 and income decreases to $4200. What is the new…

A: Budget line is a locus of all possible combination of two goods on which consumer spends his entire…

Q: 10) A consumption points inside the budget line A) is unaffordable. B) shows that the consumer…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: Explain one difference and one example between the Cardinal utility and ordinal utility!

A: Cardinal utility is a Marshallian concept used along with an ordinal utility to gauge the…

Q: Homer consumes only donuts and beer. When he consumes less than 10 beers, Homer would gladly drink…

A: Indifference curve: It refers to indicating mix of two products that give the customer equivalent…

Q: Homer consumes only donuts and beer. When he consumes less than 10 beers, Homer would gladly drink…

A: 1) Homer’s indifference curve passing through point (8 donuts, 8 beers)

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Given Information: The budget of Person A is £21 to spend on toothbrushes and toothpaste. The price…

Q: If a consumer always wishes to consume peanut butter and jam in fixed proportions, he treats these…

A: The consumer either uses jam or peanut butter in normal cases if the price of jam increases then the…

Q: What do you understand by price line and budget line? Assuming that a consumer has a monthly income…

A: Budget Line(BL) shows all of the possible combinations of two goods that a consumer can purchase,…

Q: While discussing the choice bundle of a consumer, differentiate between Boundary Optimum and…

A: With an interior optimum the consumer chooses a basket that contains positive quantities of all…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: A utility maximizing consumer necessarily minimizes expenditure". Is this statement true or false?.…

A: The utility is basically the enjoyment or satisfaction that the customer gets or obtains when a…

Q: Draw the consumer’s budget constraint (put mask on the horizontal axis). What is the slope of this…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Q2. When do economists say that a consumer is in equilibrium, what factors can distort the…

A: 2)The phrase "consumer equilibrium" describes a situation in which a consumer is totally satisfied…

Q: Answer the question based on the table below showing the marginal utility schedules for product X…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

Q: What are the two conditions that are met if a consumer is maximizing utility?

A: A consumer is said to be in a state of equilibrium when he or she maximizes his utility, given…

Q: In the figure below, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: The budget line represents different combinations of two commodities that a consumer can purchase…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Hi, thanks for the question. Since posted multiple questions, we will answer for first question. If…

Q: Mario consumes two goods: cars and motorbikes. An increase in the price of cars while holding income…

A: (A) increase the marginal utility provided by cars. Option "A" is correct. Marginal utility refers…

Q: Economists assume that the objective of consumers is to maximize their _____   Question 37 options:…

A: Utility- It is the total satisfaction that is received from the consumption of a good or service.

Q: A consumer has income of $15000. Masks costs $35 per mask, and sanitizers costs $70 per bottle.…

A: According to the question a consumer has income of $15000/month and having the mask cost $35/mask as…

Q: Tom is willing to forego two gallons of milk in order to try his first container of rice pudding.…

A: As, Tom has consumed 0 rice pudding containers until now, therefore, he will be willing to give up 2…

Q: In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: The farther the indifference curve is from the origin, the higher the utility/satisfaction it yeilds…

Q: Explain the consumer equilibrium condition according to utility theory. Include in  your answer the…

A: Equilibrium of a Single Good: When a consumer buys a commodity, he stops when the price and utility…

Q: Joe Bob from Workout Problem 4.12 has a cousin Don who consumes goods 1 and 2. Don thinks that 3…

A: We know that utility function of perfect substitute is the form of straight line equation…

Q: assume that the data in the following table are an indifference curve for a consumer: what is the…

A: Indifferent curve shows the different possible combination of goods nd services that give the same…

Q: Given the data in the above table, if income is $16, and the price is $1 for a bottle of water and…

A: Total utility is the total satisfaction that a consumer derives when he consumes goods and services.…

Q: 6. Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U=…

A: Given Information: Consumer's Income (M) = $360 Price of X = $3 Price of Y = $2 Utility Function =…

Q: Linda loves buying shoes and going out to dance. 20- Her utility function for pairs of shoes, S, and…

A:

Q: Suppose a person allocates a given budget between food and clothing. If food is an inferior good can…

A: Demand for Inferior goods decline with an increase in income.

Q: During calamities, such as typhoons, fires, or the ongoing pandemic, the government provides…

A: A budget line depicts the combinations of two commodities that a consumer can consume given a budget…

Q: The budget line shows: all possible combinations of two goods that yield the same level…

A: Budget lines shows the combination of expenditure's of two different goods and the given level of…

Q: Amrita, a utility maximizing consumer, consumes only two normal goods, Breakfast Cereal and Bread…

A: Marginal utility refers to the value of additional utility that derived from the consumption of one…

Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…

A: Laspeyres cost of living index  = ∑(p1q0)/∑(p0q0) x 100 Where p1 is current year price p0 is base…

Q: explain the consumer equilibrium condition according to the utility theory.

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.