a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consL 18 utils. b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit cons 18 utils. c) Would a rational consumer consume the eighth unit if it was free? No

Q: Q1. You have Rs.10. The price of samosa is Rs.1 per unit. The price of a steak sandwich is Rs.3 The…

A: Income= Rs10 Price of 1 samosa= Rs1 Price of steak= Rs3 Utility maximization:- It refers to notion…

Q: A consumer has $10 to spend on potato chips and sodas. The potato chips cost $2 per bag and the…

A: The budget line shows the alternate combination of two goods which is affordable and can be…

Q: A rational consumer would want as much as many goods as possible to maximize utility derived from…

A: Utility refers to the satisfaction or enjoyment a consumer can get from a service or good.

Q: Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is…

A: Microeconomics studies the economy at an individual level. It studies consumers and assumes that…

Q: Ambrose's utility function is = 4x1 ^1/2 + x2. If the price of nuts (good 1) is $1, the price of…

A: A consumer will maximise its utility at a point where marginal rate of substitution is equal to the…

Q: For the utility function above, if the price of the good is $4, what is the marginal Utility per…

A: Marginal utility is the incremental/additional gain in total utility when one additional unit is…

Q: A student living in a university hostel has two options for meals: eating at the dining hall for…

A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

Q: Suppose that Turkish consumers pay twice as much for oranges as they pay for apples, whereas…

A: Given the tastes of the consumer, a rational consumer seeks to maximize the utility or satisfaction…

Q: Mr. Hasan purchases two goods, X and Y, and the utility gained for the last unit purchased of each…

A: Consumer equilibrium- A rational customer would buy something up to the point that the price of the…

Q: Good X:_____ units Good Y: _____ units b. Suppose that the budgented amount falls to $5. This…

A: Equation for consumer budget. px is price of quantity x py is price of quantity y m = income of…

Q: The daily total utility per quantity of consumption is shown in the figure. This shows that the…

A: The additional satisfaction a client gets from possessing one additional unit of associate item or…

Q: The MU of the last unit of good A consumed is 4 utils and the MU of the last unit of B consumed is…

A: Utility is maximized when marginal rate of substitution is equal to price ratio of goods. Marginal…

Q: The table below shows the marginal benefit, in dollars, that Kareem derives from consuming two…

A: Hi! Thank you for the question but as per the guidelines, we can only answer three sub-parts of a…

Q: The utility function of a certain good is given by U(x) = 60x - x2 where x represents the number of…

A: Given the utility function, we will maximize the function to get the value of x which gives the…

Q: Gilberto's reservation prices for tubs of hummus are given below. Q (Tubs) Reservation Price (S 1 28…

A: As given in the question Gilberto can consume other foods as he is getting constant marginal utility…

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: Describe how rational consumers maximize utility by comparing the marginal utility-to-price ratios…

A: Utility is defining as the level of satisfaction receives while consuming the goods and marginal…

Q: 1. a) Mr. Hasan purchases two goods, X and Y, and the utility gained for the last unit purchased of…

A: In economics, utility function is an important concept that measures preferences over a set of goods…

Q: Suppose that the utility function for two commodities is: U(q1, q2) = q1α q2(1-α) Let the prices…

A: A consumer consumes a good as it gives it is a utility. The utility is the want satisfying power of…

Q: Is it reasonable to assume that people seek to equate the marginal utility/price ratios of the goods…

A: Introduction: The complete satisfaction gained from consuming an item or service is known as…

Q: A consumer with a fixed income will maximize utility when each good is purchased in amounts such…

A: Marginal utility refers to the additional happiness a consumer gets when he/she consumes an…

Q: Define marginal utility and Provide an argument why to maximize total utility of good x and good y,…

A: The want satisfying power of a good is termed as the utility. The summation of utility derived from…

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: If price represents the buyer's 'sacrifice' to consume a particular good, explain how the…

A: Concept Many consumers buy a luxury purse on a regular basis, perhaps as frequently as they buy a…

Q: Assume the marginal utilities for the first 3 units of a good consumed are 200, 150, and 100,…

A: In Economics, Utility refers to the total satisfaction received from consuming a goods or service.

Q: Avery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y.…

A: Given  Marginal utility on last unit of good X  that Avery buy by using weekly income = 14 and last…

Q: Assume that Sara has $800 per month to divide between playing golf and playing paint ball . Assume…

A: Budget constraint  (P1Q1 + P2Q2) <= M

Q: Sketch a typical downward sloping demand curve for bagels. What must be true for Bill to purchase…

A: Optimal condition Marginal Utility = Price Bill will purchase additional bagels only when marginal…

Q: Joan has a monthly income of €100 that she allocates to two goods: meat and potatoes. Suppose meat…

A: U (M, P) = 2M + P Budget constraint of the consumer will be: I=2M+P PM=€4 PP= €2  I=100 P'P= €4

Q: John consumes 20 units of food and 24 units of clothing. If food is an inferior good, will John be…

A: Inferior good is the one whose demand declines with increase in income.

Q: Assume that Sara has $800 per month to divide between playing golf and playing paint ball . Assume…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Assume someone has a utility function of U = Min​[3X, Y]. They currently have 8 units of X and 3…

A: When utility is given in the form of U = Min(3X,Y), then it can be considered as the perfect…

Q: Which of the following defines marginal utility? a. the maximum amount of satisfaction from…

A: Utility is the satisfaction a consumer derives from consuming total units of the good.

Q: The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last…

A: Marginal utility is the utility derived from the consumption of an additional unit of the good. When…

Q: Suppose that Mr. Umais spends his entire income on good X and Y. The marginal utility of each…

A: The marginal utility schedule of good X and good Y is given. The price of good X and good Y are…

Q: An individual's utility is given by: U (q1, q2) = a(q1)+ b(q2), where a and b are constants. When…

A: Given that, An individual's utility function is given by  U(q1,q2) = a(q1)+b(q2)  Here ,this is a…

Q: Christin has a monthly income of $500 that he allocates between two goods: food and clothing.…

A: a) Budget Constraint: Price of F*Quantity of F+Price of C*Quantity of C=Income Income=$500 Price of…

Q: . 1).Find the marginal utility of each of the two commodities? If the two commodities are free, what…

A: 1).Find the marginal utility of each of the two commodities? If the two commodities are free, what…

Q: (ii) Find the ratio of the marginal utilities for two goods x and y, when the utility function is U=…

A: U=plog(X+a)+qlog(Y+b) Marginal utility of good X : dU/dX dU/dX=p/(X+a) [We have used product rule…

Q: U = U ( x 1, x2)  = (x1 + 2) 2 (x2 + 3) 3

A: The Marginal utility is a satisfaction which consumer derive by consuming one more unit of…

Q: Q.1.14 Utility from consuming a good is understood by economists to mean;  (a) how often we…

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

Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…

A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…

Q: Suppose that Jack has the utility function u (x, y) = Vx + y. The price per unit %3D of x is $1 and…

A: i. u(x,y)=x+y          x+4y=100 α=max u(x,y) st x+4y=100α=x+y+λ(100-x-4y)dαdx=12x-λ=012x=λ…

Q: By selecting a bundle of good X and good Y where MRS = MRT, the consumer is saying A) "I value my…

A: MRS & MRT The marginal rate of transformation (MRT) basically refers to how many units or…