(a) Draw and explain the shapes of the total utility and marginal utility curves. (b) State and explain the condition for consumer equilibrium.
Q: 7) The want satisfying power of a commodity is known as: A) Supply B) Consumption C) Utility D)…
A: The utility is defined as the satisfying power of an good. In simple words, utility refers to the…
Q: Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2…
A: The marginal utility is the utility which is obtained from consuming one more unit of the commodity…
Q: . It is the satisfaction derived from the consumption of a commodity. A. Total utility…
A: Production means converting raw materials into finished goods. It means the goods and services are…
Q: Question 9 Rational consumer behaviour is where a person consumes the amount of a good that…
A: Consumers consume commodities and services and in return, they attain utility or satisfaction from…
Q: Question 6 (a) define marginal utility. Explain the law of marginal utility with a diagram.
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: 1. What is the difference between ordinal utility and cardinal utility? Explain why the assumption…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Alesandro purchases two goods, X and Y, and the utility gained for the last 3 unit purchased of each…
A: When an individual is consuming two products in the market, the consumer equilibrium is the…
Q: TABLE 6-3 Chocolate Bars Hot Chocolate Quantity Total Utility Quantity Total Utility 1 15 1 25 30 35…
A: Total utility depicts the total satisfaction derived from the intake of various goods and services.
Q: 40. As long as the principle of diminishing marginal utility is operating, any increased consumption…
A: The change in the total utility from the consumption of an additional unit of a good is known as a…
Q: 1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is…
A: Marginal utility is the additional fulfillment a shopper gets from having another unit of a decent…
Q: 21. Which of the following is NOT the goal of the consumer? a. maximize utility b. maximize…
A: Consumer going through is the all out cash spent on conclusive merchandise and enterprises by people…
Q: . Explain utility and its connection to consumer behavior
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Activity 1: My Utility! Directions: Explain and graph the utility schedule below. Use the space…
A: In economics, utility refers to the satisfaction that an individual receives from the consumption of…
Q: The law of diminishing marginal utility implies that... a. Total utility is constant as more units…
A: The law of diminishing marginal utility implies that as more and more units are consumed of a good,…
Q: 1. How does price affect marginal utility?
A: since you have asked multiple questions and according to our policy we will only solve the first…
Q: Question No. 3 The table below contains information about the total utility Jerry gains from coffee…
A: Below is the given table:
Q: Quantity Consumed 10 Marginal Utility 4 64 20 10 70 6 -10 72 -20 -2 70 Quantity Consumed Quantity…
A: Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good…
Q: Price for X is $1 and Y is $2. Budget is $9. Good X Good Y…
A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…
Q: 1. According to the law of diminishing marginal utility, which of the following choices is true?…
A: The law of diminishing marginal utility is used to explain the nature of the consumer satisfaction…
Q: Question 18 An increase in the price of product A will: cause utility-maximizing…
A: We have to find an in increase in the price of product A.
Q: 1. Using the consumer choice theory, explain how an individual decides what combinations of…
A: The answer is as follows:-
Q: Question 1 Which of the following statements is NOT true? O Total utility is the satisfaction from…
A: Consumer behavior is the study of process involved when individuals purchase goods and services to…
Q: 42.Jacob works while sipping mugs of green herbal tea. He does, however, know that after the fifth…
A: The answer is as follows:-
Q: 1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in…
A: Hello, since there are multiple questions posted, we will answer first question. If you want any…
Q: How would a fresh produce vendor at the farmers' market create the four types of utility (form…
A: Utility basically refers, how the person or an consumer make use of goods or commodities for their…
Q: What is the difference between total utility and marginal utility? Explain.
A: Total utility : Total utility is the aggregate or total utility that a person derives from consuming…
Q: 3. The economic analysis expects the consumer to behave in a manner which is Roti
A: To find : The consumer should behave in which manner.
Q: 7) The law of diminishing marginal utility (a) refers to the decrease in total satisfaction as more…
A: Utility means that the satisfaction achieves from the consumption of the good reaches its maximum.…
Q: Relationship Between the Consumer Demand Curve and Marginal Utility Discuss the impacts of marginal…
A: Marginal utility is the gain or satisfaction obtained from the consumption of an extra unit of a…
Q: If the consumer is consuming exactly two goods, and he is always spending all of his money, can both…
A: - Inferior good is the one whose demand is negatively associated with the income of the consumer.…
Q: 2. Determining opportunity cost Juanita is deciding whether to buy a skirt that she wants, as well…
A: Total cost is the sum of opportunity cost and price of skirt. Opportunity cost is foregone income…
Q: 1. Using the following information, calculate total utility and marginal utility. a. Plot the total…
A: Economics is the study of production, allocation and distribution of resources in an economy. It has…
Q: Participation Question 7: • A consumer derives utility from consuming integer units of Good X and…
A: Total utility refers to the total amount of satisfaction or fulfilment gained by a consumer as a…
Q: 6. Using Marginal Utility analysis, carefully explain why the Demand Curve for a given product is…
A: Demand, if a person is willing to buy and he has the ability to pay then it is considered a demand…
Q: Class Activity 3 9" February 2022 1. The table below shows the marginal benefit or Utility (MU)…
A: Given:
Q: This table shows the quantities consumed of one commodity and the total utility gained from this…
A: Marginal utility refers to the additional units of satisfaction derived from one more additional…
Q: 23. As you consume more and more of any good, you experience: Diminishing marginal utility Negative…
A: When we consume more and more units of any good, the utility derived from each successive unit goes…
Q: 1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third,…
A: To ascertain the missing total utility and marginal utility and complete the table,
Q: 5. The principle of diminishing marginal utility means that as you spend more and more hours…
A: Answer for Q#25 According to the law of diminishing marginal utility, when more and more units of a…
Q: Task 4. Five consumers have the following marginal utility of apples and pears: Apples (MU) Pears…
A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…
3. (a) Draw and explain the shapes of the total utility and
(b) State and explain the condition for consumer equilibrium.
Step by step
Solved in 2 steps with 1 images
- 1. Generally speaking, as more of a good is purchased by an individual consumer, marginal utility A. increases and total utility increases. B. increases and total utility decreases. C. decreases and total utility increases. D. decreases and total utility decreases.7 Describe in detail about Equilibrium, budget line, new equilibrium as well as how consumers are affected (positively or negatively) by the price change? Explain applying economic analysis7) The law of diminishing marginal utility(a) refers to the decrease in total satisfaction as more units of the good areconsumed.(b) refers to the idea that total utility can be negative.(c) refers to the fall in additional satisfaction created by consumption of more andmore units of a good.(d) All of the above.
- 6. Using Marginal Utility analysis, carefully explain why the Demand Curve for a given product is sloping downward.1 The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one, I start getting sick of it so the net total utility is starting to fall. I park in a car park and when I park there for 6 hours, it is getting more expensive so I prefer to leave early. Is this an example of diminishing utility?8) When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the above
- 4. Using indifference curves and budget constraints, derive the demand curve for an individual (use two graphs). Next, in a market that only contains two consumers, show graphically (using numbers that make sense) how the market demand curve is derived.3. Explain the law of diminishing marginal utility with the help of examples and also explain the assumption under which this law is applicable and what the exceptions are where this law does not hold.1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?
- 1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores? ****FIRST 3 SUB-PARTS ANSWERED ALREADY ONLY NEED LAST 3****24. What is the difference between total utility and marginal utility? Explain.3. A consumer is maximizing his satisfaction. Due to a change in tastes, his marginal utility increases for one of the products he is consuming. As he acts, what will happen to the marginal utilities of other goods that he is consuming? Those goods’ marginal utilities will: a. increase and then eventually decrease b. decrease and then eventually increasec. increase.d. decrease.e. not change.
