Explain whether the following statement is true, false, or uncertain. A consumer consumes two categories of goods x and y. If an increase in the price of y does not increase the consumer's consumption of x, then this consumer must consider x to be an inferior good.

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: The horizontally oriented definition of DEMAND states that "demand is the quantitites of a good that…

A: The demand for any good can be defined as desire of that good backed with sufficient purchasing…

Q: If Cheerios and Milk are complements, consumers consume either one of these goods or the other.…

A: In economics, complement goods are those which are used jointly and can not be used separately. For…

Q: Compare the following two pairs of goods: • DVDS and DVD players • Crest toothpaste and Colgate…

A: The two goods are complements :  DVDs and DVD players Reason : They complete the demand for each…

Q: 44) A person is in equilibrium when marginal utility per dollar equals 1. False True

A: When a consumer spends his given income on the purchase of certain goods in such a way that he…

Q: A normal good An inferior good When the price of this commodity rises, the substitution effect is…

A: If customers don't buy much less of a good whilst income rises then it's a NORMAL GOOD, for this…

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 marginal utility of the last unit of apples consumed is 10, and the marginal utility of the last…

A: The ratio of the marginal utility of two products is equal to the ratio of prices of the two…

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 always wishes to consume peanut butter and jam in fixed proportions, he treats these…

A: The consumer either uses jam or peanut butter in normal cases if the price of jam increases then the…

Q: Suppose an individual's utility function is given by the following expression: U (q1 , q2) = min…

A: Individuals (consumers) directly concerned within the acquisition, use, and disposal of economic…

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: maximising consumer necessarily minimises expenditure.” Is the statement true or false? Explain…

A: In economics, utility refers to the usefulness or enjoyment that a consumer can derive from a…

Q: Given a utility function that represents preference over bundles which consists of two goods. Can we…

A: To analyze consumer behavior and their satisfaction from the consumption of goods and services,…

Q: TU of Good Y (utils) Units of TU of Good Units of Good X X (utils) Good Y 1 20 19 35 32 3 48 3 40 4…

A: According to the question, given that the table of the utility experienced by good X and Y. in two…

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: Refer to Figure#4 Which of the following statements is true for a consumer who moves from point A to…

A: The above graph shows the different indifference curves. Indifference curves is the locus of…

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: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

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: What are some key points about the utility-maximization model

A: Consume equilibrium is a state where consumer gets maximum satisfaction. Individuals and businesses…

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: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: Suppose the weighted marginal utility for two goods x and y at a position of consumer equilibrium…

A: Weighted marginal utility refers to marginal utility per unit of currency.

Q: Imagine a hypothetical consumer is using all of their income on two goods, X and Y. The price of…

A: Given  Price of good X =$2 Price of good Y= $10 Additional units of utility from another unit of…

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: ive an example of inferior good and an example of normal good that you have encountered and how has…

A: Inferior goods are those goods of which the demand for products decreases and income level…

Q: Let x and y denote the amount of goods X and Y. Find the demand functions of X (do not need to find…

A: Normal good is defined as a good whose income effect is positive. Law of Demand states that as price…

Q: If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals…

A: ''Since multiple questions are asked, we are supposed to answer one question''   Marginal Utility is…

Q: Explain the consumer equilibrium condition according to utility theory. Include in  your answer the…

A: Equilibrium of a Single Good: When a consumer buys a commodity, he stops when the price and utility…

Q: Advertisement is one of the factors that influence customers to increase demand for a specific good.

A:

Q: Explain the principles, concepts, and theories underlying individual consumers’ behaviour with…

A: Utility is the want satisficing power of a commodity, it differs from person to person and changes…

Q: A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5.  At…

A: Answer: (1). According to the above figure, the consumer consumes 10 units of good X at point A.…

Q: Given Utility function U=20Q-2Q^2, what quantity of good gives highest utility for the consumer?…

A: The utility (U) for a consumer is the amount of satisfaction procured or attained by an individual…

Q: Suppose you consume xl unit of Goods 1 and x2 units of Goods 2, the utility you get is U(x1, x2) =…

A:

Q: Suppose that consumer has the following utility function: U(X, Y) = X/2y/+. What would be the demand…

A:

Q: Bob views apples and oranges as perfect substitutes in his​ consumption, and MRS​ = 1 for all…

A: The marginal rate of substitution in economics is the amount of a good that a consumer is willing to…

Q: explain the consumer equilibrium condition according to the utility theory.

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.