Q15. Most decisions involve which involves comparing the benefits and costs of choosing a little more or a little less of a good. A. utility B. marginal analysis C. the budget constraint D. consumption
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A: here we can calculate the given as follow
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A: As given Qx = 953 - 9Px - 3Py +9Pz + 2M Also Px = $4/unit Py = $1/unit Pz =$7/unit M = $772
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- What happens to the original budget line if the price of good ? falls to 4$? (i.e., Will there be a change in the slope and/or intercepts of the original budget line? If yes, what are those changes?). Interpret economically how the change in the price of good ? affects the consumption decision of the consumer.K A budget line is a line that describes limits to consumption possibilities and that depends on a consumer's OA. demand; prices B. demand; supply C. budget; costs D. budget; prices and of goods and services.Suppose a consumer has income of dollars 20 which to be spent on good B and A. Good B cost dollar 4 and good A cost dollar 2 ,then A. Determine budget equation? B.draw budget line?
- Jeremy has a monthly income of $60. He spends his money making telephone calls (good ?, measured in minutes) at a price of ?? and on other composite good ?, whose price has been normalized to one, meaning ?? = $1. His mobile phone company offers him two plans: plan A, in which he pays no monthly fee and makes calls for $0.50 per minute, or plan B, in which he pays a $20 monthly fee and benefits from cheaper phone calls at $0.20 per minute.(a) Depict Jeremy’s budget constraint under each of the two plans, with the number of phone calls (good ?) in the horizontal axis and the composite good (good ?) in the vertical axis. (b) If Jeremy mentioned that plan A is better for him, what is the set of consumption bundles he may purchase if his behavior is consistent with WARP?What happens to the original budget line if the price of good ? doubled? (i.e., Will there be a change in the slope and/or intercepts of the original budget line? If yes, what are those changes?). Interpret economically how the change in the price of good ? affects the consumption decision of the consumerThe marginal utility for shoes and coffee is given below for five individuals. A pair of shoes costs $2, and a cup of coffee costs $1. Marginal Utility of Shoes Marginal Utility of Coffee Michelle 12 6 Renee 6 6 Douglas 6 3 Paul 3 6 Shannon 12 3 a. Which of these consumers are optimizing over their choices? Explain b. For those who are not, how should they adjust their spending?
- Marissa has $30 to spend on beer and hamburgers. Beers are $3/beer and hamburgers are $5/hamburger. Which figure represents Marissa's budget constraint? Group of answer choices figure (a) figure (b) figure (c) figure (d)A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y.a. The budget set is illustrated below. What are the values of A and B? The horizontal axis is labeled Good X. The vertical axis is labeled Good Y. A line begins at a point on the vertical axis goes down to the right and ends at a point on the horizontal axis. A = B = b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? multiple choice Yes, it rotates clockwise Yes, it shifts out from the origin Yes, it shifts in toward the origin No, it does not change c. Given the equation for the budget set, what are the prices of the two goods?Good X: $ Good Y: $ What is the consumer’s income? $need quality answer Nuoya has $256 to spend on cherry and/or coconuts. The price of cherry is $12/kg and the price of coconuts is $17/kg. What is the slope of her budget line, if cherry is on the horizontal axis and coconuts are on the vertical axis? Round your answer to two decimal places, if necessary. Hint: is slope positive or negative?
- For lunch, Misha eats only salads or fruit & yogurt smoothies. Her weekly food budget is $48. Each salad costs $8 and each smoothie costs $3.a. Draw Misha’s budget constraint.b. What is the opportunity cost of purchasing one more smoothie? What is the opportunity cost of purchasing one more salad?c. Describe intuitively how Misha should make the optimal consumption decision.d. Suppose that Misha income falls from $48 to $24. Show what happens to the budget constraint. Is it possible that Misha will consume more salad as a result of this?Q2. You drink only Coffee or Orange juice Price of Coffee (dollars per cup) Marginal Utility of Coffee (for 1st cup) Price of Orange Juice (dollars per glass) Marginal Utility of Orange Juice (for 1st glass) $3 60 $2 50 a) Calculate the MU per dollar for Coffee b) Calculate the MU per dollar for Orange Juice c) If you have 1 cup of Coffee and 1 glass of Orange juice, are you in Equilibrium? Explain briefly. d) If not, how should you change your consumption of these 2 items?a. With the aid of appropriate diagrams, evaluate and illustrate the conditions required for utility maximization.
