Q: Explain and differentiate preference and utility.
A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…
Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…
A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…
Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…
A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…
Q: The table below contains information about the total utility Jerry gains from coffee and pastries he…
A: a) Number of Coffee Total Utility From Coffee Marginal Utility From Coffee 1 1.50 2 2.70…
Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…
A: Utility is maximised at a point where marginal utility per dollar for all the goods are equal.
Q: What is the law of diminishing utility? Please explain with a few examples.
A: Law of diminishing marginal utility says that as we consume more and more units of same good then…
Q: What is the law of diminishing marginal utility why or how is this relevant for our discussion of…
A: Marginal utility is the addition to the total utility received from consuming an additional unit of…
Q: Explain the Marginal Utility Concept with example?
A: Utility:Utility is the want satisfying power of a commodity. The utility is a tool to measure the…
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: How does utility theory differentiate a “need” from a “want”?
A: Utility alludes to the total fulfillment got from the utilization of a thing or service. As the…
Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…
A: Utility theory is a positive theory. that looks to make sense of the people's noticed way of…
Q: What is meant by Utility ?
A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…
Q: what is UTILITY and UTILITY FUNCTION?
A: Applied economics, utility refers to a consumer's satisfaction with the product or service.…
Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…
A: We are going to solve for optimal choices of consumption for each consumer mentioned in the…
Q: What does the assumption that More Is Better implies about Marginal Utility? Explain?
A: MU(marginal utility) is the change in TU(total utility) when an additional unit of good is consumed.…
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: The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda…
A: We have giver marginal utility table of Pizza and soda, The price of mini pizza =1 and the price of…
Q: If the consumer is consuming exactly two goods, and she is always spending all of her money, can…
A: We will use microeconomic concepts such as monotonicity, substitution effects, normal goods and…
Q: Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone…
A: Here, it is given that Shiela bought a phone and she paid $10,000 for the phone.
Q: What are the two conditions that are met if a consumer is maximizing utility?
A: A consumer is said to be in a state of equilibrium when he or she maximizes his utility, given…
Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?
A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…
Q: Suppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per…
A: The ratio of the marginal utility of beef to pork can be calculated as follows:…
Q: what is the principle of utility
A: Utility refers to the satisfaction received by a consumer from consuming a particular commodity.
Q: If marginal utility is declining but still positive, total utility is increasing. True or false…
A: The utility is the satisfaction received from consuming a good or service.
Q: Refer to the table below. If the subscription price for a sports app is $2 per week, the…
A: Given,The subscription price for a sports app Ps is $2 per week.The subscription price for a game…
Q: Is it possible for total utility to increase while marginal utility diminishes
A: Step-1 Marginal utility(MU) is the change in the total utility(TU) due to small change in the…
Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…
A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.
Q: Give a real-life example (from your daily life) that illustrates total utility rising as marginal…
A: Total utility(TU) is the satisfaction or benefit derived from consuming a good. Marginal utility(MU)…
Q: The law of diminishing marginal utility states that?
A: the law of diminishing marginal utility was given by a German Economist Gossen, which is why it is…
Q: c) From the following budget line and the utility function, calculate the amount of two commodities…
A: Budget Constraint is given as:- 2500 = 20X + 30Y Utility Function is given as:- U = 300X0.6Y0.7
Q: Marginal utility is equal to?
A: Utility It's a metric for assessing a person's level of satisfaction with the things they've…
Q: Who determines how much utility an individual will receive from consuming a good?
A: The demand refers to the total amount of a good which an individual is willing, and able to buy at…
Q: How can else increase marginal utility and therefore the consumer demand curve?
A: marginal utility is the additional fulfillment a purchaser gets from having another unit of a decent…
Q: Explain how consumer equilibrium is reached using marginal utility analysis.
A: Utility refers to the power of a good to satisfy the wants of the people. Marginal utility refers to…
Q: Assume well behaved preferences for a consumer. If total price of good on Y axis goes up, ceteris…
A: A well-behaved consumer means the preference relation is convex and monotonic in nature
Q: example of Diminishing Marginal Utility and briefly explain why?
A: Diminishing marginal utility means when a consumer consumes a good then marginal utility derived…
Q: Describe Marginal Utility and Diminishing Marginal Utility? Include a detailed example using a…
A: Marginal utility is defined as the satisfaction level received when consumer consume some level of…
Q: Would you expect total utility to rise or fall with additional consumption of a good? Why?
A: Marginal utility is the additional satisfaction that is obtained from consuming one more unit of the…
Q: Explain Law of Diminishing Marginal Utility with an example?
A: The law of diminishing marginal utility states that when a person increases consumption of a product…
Q: Diminishing Marginal Utility. Explain the law of diminishing marginal utility Discuss an instance…
A: The idea of marginal utility is used to measure how individuals' satisfaction levels affected their…
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What are four responses to the claim that people should not behave in the way described in this chapter?Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?14. What assumption is important in using economic model to make predicitons? a) the law of demand b) the rationality assumption c) ceteris paribus/ other things being equal d)evryone being a price taker
- 1 explain the role of ceteris paribus in economic analysiswhy is the market for recycled aluminium good and the market for plastic bad in the US? Depict this with a firm input choice model. I understand that recycled plastic decreases in qualiy everytime it is recycled while aluminium does not and can be recylced without the decrease in quality, but I dont know how to depict this graphicallyA student has a monthly budget of $120 to spend on eitherburritos, which cost $6 each, or sodas, which cost $4 each.1. What is the largest number of burritos that the studentcould afford to purchase in one month?2. What is the largest number of sodas the student couldafford to purchase in one month?3. Draw the student's budget constraint. Put burritos on thex-axis and sodas on the y-axis.Graded Assignment due Monday4. Which combinations of burritos and sodas are unaffordable--those tothe left of the line in the graph or those above the line in the graph? Why?5. Which combinations would leave some budget unspent - those to theleft of the line in the above graph or those to the right of the line in theabove graph?6. What is the equation for the student's budget constraint? In yourequation, use Q1 as the variable to represent the quantity of burritos andQ2 to represent the quantity of sodas.7. What is the opportunity cost of a burrito?8. What is the opportunity cost of a soda?9. The local…
- How would you demonstrate part b) diagramatically 6. Assume you can work as many hours you wish at £12 per hour (net of tax). If you do not work, you have no income. You have no ability to borrow or lend, so your consumption, c, is simply equal to your income. a) Derive and plot the feasible set, between daily values of consumption c, and “leisure”, l. Label the values at the intercepts (the points where the feasible frontier cuts the two axes). b) Assume that your optimal choice of consumption and leisure is to work 8 hours per day. Illustrate this choice diagrammatically using the feasible set and indifference curves.Budget Constraints: Sam has an income of $1000 a week from a rental property he owns. Sam also has a job as a legal assistant where he gets paid $50 an hour for the first 50 hours he works. However, he can’t work for more than 50 hours, so for every hour, he works more than 50 he can work as a cashier making 20 an hour. John’s time endowment is 100 hours. a) Draw and label Sam's budget constraint b) What is John’s maximum potential income? c) What is the price/hour of leisure when Sam works fewer than 50 hours, and more than 50 hours/week? Need help for a b c . ThanksMicroeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget? 2. If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 3. Show in an illustration where pokemon cards is in the x-axis and y-axis is the sticker.
- The consumer choice is not restricted to the choice of consumptiongoods. In fact, it can apply to all our decisions that involve trade-offs. Suppose Mary has awage per hour of 10 euros. With her earned income she consumes. That isC=wH per day.She also decides how many hours to work of take leisure time each day.H=24-N, whereHis work and N is leisure. Her utility is given by （picture） Solve for the optimal decision of labor/leisure. Plot the budget constraint and the indif-ferent curve. What is the labor supply function?Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 2. Show in a budget line illustration where pokemon cards is in the x-axis and y-axis is the sticker. 3. Find the slope using the illustrated result.(I only need the answer for number 3.)EXERCISE 1Below is a production possibilities table for consumer goods (Food) and capital goods(Robots):A B C D EFood 0 1 2 3 4Robots 10 9 7 4 01. Show these data graphically. Upon what specific assumptions is this productionpossibilities curve based?2. If the economy is at point C, what is the cost of one more food? Of one morerobot? Explain how the production possibilities curve reflects the law ofincreasing opportunity costs.3. If the economy characterized by this production possibilities table and curvewere producing 3 food and 2 robots, what could you conclude about its use ofavailable resources?4. What would production at a point outside the production possibilities curveindicate? What must occur before the economy can attain such a level ofproduction?EXERCISE 2Explain how (if at all) each of the following affects the location of a country’s productionpossibilities curve:1. The quality of education increases.2. The number of unemployed workers increases.3. A new technique…
