Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4, respectively, and that the consumer's income is $25 Units of L Total Utility Units of M Total Utility 1 9 16 2 15 28 3 18 36 4 20 4 40 21 5 42 What level of total utility does the rational consumer realize in equilibrium? Multiple Choice 162 utils 86 utils 58 utils 51 utils

Q: Jack and Jill live in the same village where they both face the same price. Jack has preferences…

A:

Q: The table shows the utility schedule for a consumer of candy bars.   Number Consumed Total Utility…

A: Answer to the question is as follows:

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: Felina prefers to spend her living allowance of $1500 on Mobile data and food. She prefers to pay…

A: The utility is the want satisfying power of the commodity. The budget line would be the total amount…

Q: 6)       According to the law of diminishing marginal utility, _________? A) Additional consumption…

A: Law of diminishing marginal Utility: It says that by consuming more goods marginal utility will…

Q: The table shows the utility schedule for a consumer of candy bars.   Number Consumed Total Utility…

A: The given table provide information about the total utility or total satisfaction an individual gets…

Q: Consider a representative consumer in a two goods economy of x and y. The price of good x is 1 TL…

A: Utility function of two goods X and Y. Price of X = 1TL Price of Y = 3TL MRSXY = 2 Solution: Optimum…

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: Assume that a combination of two goods reflects a point of tangency between the budget line and an…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: The table below shows total utility for two products. Suppose that the price for product A is $5 and…

A: Marginal utility refers to the additional units of satisfaction derived from one more additional…

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

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: If a consumer has chosen optimally, their Marginal Rate of Substitution is equal to the price…

A: Marginal rate of substitution (MRS) is the rate at which an individual will be willing to substitute…

Q: The table below contains information about the total utility Jerry gains from coffee and pastries he…

A: Answer: Introduction: Marginal utility: marginal utility refers to the additional utility derived…

Q: Jessica has an income of $216 and she is buying apple cider and books. Apple cider is $8 per unit…

A: Bundle Q(A) MU/$(A) Q(B) MU/$(B) A 0   9   B 3 6.13 8 5.13 C 6 5.38 7 5.21 D 9 4.63 6 5.29…

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: What are the assumptions of cardinal utility theory? Explain the law of diminishing marginal utility…

A: The Cardinal Utility approach is supported by neo-classical economists, who assume that utility is…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

Q: The budget set, or budget constraint, in the graph shows the possible combinations of brownies and…

A: Budget line shows graphically the possible combinations of two goods which a consumer can purchase…

Q: Suppose that a consumer with the utility function U = X0.75 Y0.25 choses a bundle where X=10 and…

A: Marginal utility per dollar is the ratio of marginal utility to the price of the good. It increases…

Q: The table shows the marginal utility schedules for product X and product Y for a hypothetical…

A: Given  Unit of x MUx Unit of Y MUy 1 72 1 24 2 66 2 20 3 60 3 16 4 48 4 12 5 30 5 8…

Q: The table shows the total utility Ann derives from eating portions of salad. •How much marginal…

A: Using the concept of utility, we may determine how satisfied a consumer is after purchasing a…

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: Answer the table below showing the marginal utility schedules for product X and product Y for a…

A: Given information: Price of product X (Px) = $4 Price of product Y (Py) = $2 Income of the consumer…

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

A: We have given that  The price of good x is $3 and the price of good Y is $2 and consumer income is…

Q: Suppose that a consumer with the utility function U = X^.75 Y^.25 choses a bundle where X=10 and…

A: Utility function: The utility function is a key concept in economics that assesses preferences…

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: Consider the following utility function for goods x1 and x2:   u(x1,x2)=(x1+x2)2    What type of…

A: Utility function is a representation of individuals preferences for goods and services.

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: A consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is…

A: A rational consumer utility is maximized at a point where the slope of the budget line is equal to…

Q: You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the…

A: UNIT OF X MUx UNITS OF Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 Given…

Q: Bill spends his money on flowers and cookies so as to maximize his total utility. Both flowers and…

A: Bill spends his money on flowers and cookies so as to maximize his total utility. Price of flowers…

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: Dave currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket, his…

A: Marginal utility is the utility gained when an additional unit of a good is consumed. Ina two goods…

Q: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Given; Price of cheese cake= RM8 Price of curry puff= RM4 Income; M= RM52

Q: Answer the next questions on the basis of the following marginal utility (MU) data for products X…

A: Equilibrium is given by  MUx/ Px = MUy /Py

Q: Q14. The slope of the calculated by taking the price of one good and dividing it by the price of the…

A: Budget constraint shows the combination of total expenditure of goods which are spent by consumer on…

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

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

Q: Timothy has a utility function that depends on the number of musicals and the number of operas seen…

A: Introduction- Utility is determined by a consumer, on the basis of happiness or satisfaction that he…

Q: What is the difference between ordinal utility and cardinal utility? Explain why the assumption of…

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

Q: Lisa views pizzas and burritos as goods.  If she prefers a bundle of 4 burritos and 4 pizzas to a…

A: In a market, when a consumer enters to make purchase activity, he makes rational decisions when…

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: The first slice of pizza yields Ali 18 units of utility and the second yields him an additional 12…

A: Marginal Utility is the additional utility when we consume one more additional units , so here we…

Q: Define the law of diminishing marginal utility. Given an individual’s income and the prices of two…

A: The optimal amount of SG and H using Equi marginal principal can be determined as follows- The…

Q: Suppose the following table reflects the total satisfaction (utility) derived from eating pizza:…

A: Law of DMU states that when a person consumes a commodity, the satisfaction he/she derives from the…

Q: Assume the following expression summarizes an individual's demand for good #1: qª (P1, P2, Y) = 10 –…

A: Given Individual demand  q1p1,p2,y=10-p1+2p2-y    ........ (1) p1  = 8 and p2  =5  y= 10

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: 44. Answer the next question(s) based on the table below showing the marginal utility schedules for…

A: Marginal Utility (MU) refers to the additional satisfaction enjoyed by consumer from consuming an…