Assume that a consumer purchases a combination of products Y and Z and that the MUVPy= 36/9 and MUP2= 8/2. To maximize utility, without spending more money, the consumer should Multiple Choice purchase less of Z and more of Y. purchase more of Z and less of Y, purchase more of both Y and Z. make no change in the quantities Y and Z.

Q: Amy is a chocolate lover and has a total of 50 dollars to spend this week. The price of a certain…

A: Given Utility function U(q)=q+50-pqq∈0,50PTotal budget=50Price of q=50

Q: he insists on consuming exactly one sweet tea for every two burgers that he eats. Then, using an…

A: An indifference bend tells a blend of two products that offer equivalent fulfillment and utility to…

Q: Which of the following statements is false? Group of answer choices If marginal utility is negative,…

A: Total utility is the addition of marginal utility. As long as the marginal utility is positive,…

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

A: Here we calculate the combination of consumer budget line by using the given data and choose the…

Q: Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good…

A: The marginal utilities will look like: Consumer's utility maximizing bundle is where: MUxPx=MUyPy…

Q: To remain in consumer​ optimum, a price decrease requires(blank) in consumption. A price increase…

A: 1. As per law of demand, decrease in price will result in increase in demand.   A price decrease…

Q: The blue budget line is for an income of $1000, Px=$5 and Py=$10. At point A, the person is evenly…

A:

Q: To remain in consumer optimum, a price decrease requires V in consumption. A price increase requires…

A: To remain in consumer optimum, a price decrease requires an increase in consumption. A price…

Q: As before, Agatha consumes two goods 1 and 2. Her income is $200. The price of good 2 is always $2.…

A:

Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: Given information- Laptop Cost $750 Drone Cost- $2000 Total Cost- $15000

Q: Glen and Ben both drink coffee and coke every day. Glen likes coffee a lot more than Ben and Ben…

A: A utility function states the amount of satisfaction gained by the consumer as a function of a…

Q: Explain how an optimal decision of a consumer can be achieved by using utility-maximizing theory and…

A: In a market, consumer satisfaction can be computed using two types of economic approaches that are…

Q: Let U = XY and Px = 2 and Py = 4 and the consumers income is 32. Then, the maximum utility the…

A: Let U = XY and Px = 2 and Py = 4 and the consumers income is 32. Then, the maximum utility the…

Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: GIVEN DATA   Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and…

Q: Marginal Utility is calculated as Select one: O a. Change in Total Unility - Change in quantity b.…

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

Q: Lucky Larry spends $640 a year on cigars and lottery tickets. The lottery tickets, Good Y are…

A:

Q: Boyd currently consumes 46 units of good B and 36 units of good C. His total level of utility is…

A: Given data; Boyd has the utility function as Given below, U = 100B√C Where B indicates books and  C…

Q: Consider two bundles of coffee and chocolate and how Ted feels about them. The first bundle consists…

A: An indifference curve is a graphical representation of all the combinations of two goods, let’s say…

Q: If the marginal utility from consuming the fifth unit of a product is 6 and the total utility from…

A: The total enjoyment obtained from the consumption of an item or service is referred to as utility in…

Q: Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3…

A: The utility in terms of economics can be defined as the amount of satisfaction or happiness that a…

Q: Derive utility maximisation of a consumer using the tool of indifference curve analysis

A: An indifference curve is defined as a curve which shows various combinations of two goods that the…

Q: Suppose now we want to minimize our expenditure while achieving a certain amount of utility. So say…

A:

Q: Suppose you are a beta-delta discounter with beta=1/2. If, on Thursday, you are indifferent between…

A: In economics, utility is a term that describes the total satisfaction gained from consuming a…

Q: Consider a consumer whose preferences satisfy monotonicity. Since the consumer prefers more to less,…

A: The consumer preferences would result in an increase in the utility which would result in an ever…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: Introduction: The utility function in economics assesses a consumer's well-being or pleasure as a…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: The consumer is consuming two goods, X and Y in equilibrium. MU from X=20units MU from Y=35units…

Q: A consumer has a Cobb-Douglas utility function and consumes two goods x and y. If the price of good…

A: In economics, Cobb-Douglas utility function is widely used to show the ordinary consumer…

Q: If Ty's marginal utility for a cup of coffee is 20 and his marginal utility of a donut is 10, then…

A: When a consumer is consuming two goods, in order to maximize his utility, he should compare the…

Q: Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90…

A: Marginal utility (MU) = Change in total utility (TU) / Change in number of repetitions (Q) When Q =…

Q: Today, you've decided to treat yourself to some dessert, so you go to the store to buy a doughnut or…

A: This will be solved through this equation: Law of Equi marginal utility MUm = MUx/Px = MUy/Py

Q: Frank spends $75 on 10 magazines and 25 newspapers. The magazines cost $5 each and the newspapers…

A: To derive the highest utility a consumer need to allocate the money income(M) in such a way that the…

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

Q: Total utility (utils) 0 80 120 148 160 155 Quantity consumed per day 0   1     2     3…

A: Quantity consumer per day Total utility (utils) 0 0 1 80 2 120 3 148 4 160 5 155

Q: Mavis earns income in two periods, M1 and M2 and buys consumption goods in twd periods as well, C,…

A: Given information U=u(C1)+u(C2)1+δ Utility is well behaved function lets take 11+δ=β Utility…

Q: Which of the following statements is true? a. An indifference curve represents combinations of…

A: An indifference curve basically refers to a graphical depiction of a combination of two items that…

Q: Emma has a utility functionU(x1, x2, x3) = logx1+ 0.8 logx2+ 0.72 logx3over her incomes x1, x2, x3…

A: People typically intend to forfeit small, immediate gains for larger rewards in the future, but they…

Q: as the number of units of beer consumed by Peter Increases from 1 unit to 7 units, his total utility…

A: The utility obtained by consuming an additional unit of any good or service is referred to as the…

Q: Q48 As a consumer moves along an indifference curve, ... a. The combination of goods will vary,…

A: An Indifference curve is a combination of two goods that gives same level of utility. One of the…

Q: Utility is more closely related to he term

A: To find : Which term is more related to utility.

Q: Marginal utility analysis predicts a downward-sloping demand curve for good X because... a. As PX…

A: Answer in step 2

Q: Suppose that a consumer has a choicebetween two goods, X and Y. If the price of X is $2 and the…

A: Here, price of X is given as $2 and price of Y is given as $3. Marginal utility of X and yis given…

Q: Indicate whether the statement is true or false, and justify your answer.There is a massive body of…

A: Time discounting refers to the relative valuation rewarded in the current period to a good, service,…

Q: Which of the following statements is true? Group of answer choices If the more is better assumption…

A: All of the given statements are true.

Q: TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the statement is…

A: The substitution effect is the decrease in the sales of products due to higher prices and switching…

Q: Find the maximizing utility for the person consuming two commodities from the following information:…

A: Answer - Total Utility -  It is the total satisfaction received by consuming by a given total…