If Maria gets 80 utils from consuming five cookies, 100 utils from consuming six cookies, and 130 utils from consuming seven cookies, then Maria's marginal utility from the sixth cookie is: O 20 utils. O 100 utils. O 80 utils. O 40 utils.
Q: Goods 1 and 2 are perfect complements in Linda's preferences. Suppose that after a change in prices…
A: A person can maximize his utility at the point where the marginal utility per dollar derived from…
Q: Refer to the indifference curve/budget line diagram below in Figure 7. Given that a consumer…
A: Changes in price results in income effect and substitution effect, sum of those is price effect.
Q: Kylie spends her income on books and sandwiches. Books cost $50 and sandwiches cost $10. If Kylie is…
A: When the two Goods are perfect substitutes, one good can replace other because both the goods give…
Q: (Table) In the table, assume that a consumer has a budget of $75. Movies cost $15 per movie (with…
A: Utility is the want satisfying power of a commodity. It refers to the number of units consumed by an…
Q: 39. At the point of satiety, marginal utility is A. O Zero B. O Positive C. O Maximum D. O Negative
A: When a particular product is manufactured and produced, cost takes place and process of business…
Q: "Considering that Salah is tending to buy X and Y, reaching equilibrium may be achieved if." O He…
A: The consumer always aims to maximize his/her utility.
Q: Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility from two…
A: (1) The Principle of diminishing marginal utility says as we keep consuming units of a good, the…
Q: Figure 6 presents a consumer's original utility-maximizing market basket of two goods for clothing…
A: In a market, income effect explains a parallel shift in budget constraint with increase or decrease…
Q: The diamond-water paradox of value can be explained by O distinguishing between total utility and…
A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…
Q: Rasheed's utility function for goods X and Y is U(XY) 2XYY Let Py and Py be the prices for goods X…
A: Answer -Given in the question -U(X.Y) = 2XY + Y................................(1)Price of good "X"…
Q: Referring to the graph below (Figure 1) showing a consumer's budget line (labeled B) for two goods,…
A: Indifference curve shows the various combination of 2 goods by using those bundles consumer…
Q: If David John's preferences are represented by the utility function U(z1, I2) = #;Iz, how does the…
A:
Q: 2. John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two…
A: Solving part 2 as per asking
Q: The marginal utilities derived from each product are as follows. Number of MU of apples MU of…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…
A: Utility is maximised at a point where marginal rate of substitution is equal to the price ratio of…
Q: 2 Benny has utility function U (x, y) = 2(/x+ /9)´ over goods x and y. Then if he has 400 units of…
A: The total utility is defined as the total amount of satisfaction a consumer is able to receive by…
Q: For any two goods (things you would like more of): Select one or more: O a. Indifference curves are…
A: The standard indifference curve analysis employs a simple two-dimensional graph. Each axis…
Q: The utility-maximizing rule can be stated in words in the following way: A person will maximize…
A: Utility refers to the satisfaction consumers derive from consuming a good or service. Marginal…
Q: Suppose that consumer has the following utility function: U(X,Y)= X1/2y1/2 and Px = 1, Py = 4 and 1=…
A: We have cobb Douglas utility function for the consumer and initial prices and income are. Px = 1, Py…
Q: If one consumer's ratio of marginal utility/ price of orange is greater than that for apples, he is…
A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…
Q: Suppose Emma consumes only two goods, X1 and X2, and her utility function is given by U=5X1X2.…
A: U=5X1X2
Q: The utility maximizing point of a consumer from goods X and Y, subject to their budget constraint,…
A: The budget constraint reflects the constraints with the consumer. It shows the relationship between…
Q: For any two goods (things you would like more of): Select one or more: O a. Indifference curves are…
A: Indifference curve is the locus of different combination of two goods that a consumer can consume…
Q: Holly will choose a combination of soda and water to buy. She has $12 to spend. Soda cost $3 and…
A:
Q: Evelyn loves to eat chocolate. However, every piece of chocolate that Evelyn eats provides her with…
A: Marginal utility (MU) is the change in the total utility because of consumption of an additional…
Q: sider the utility function U(x, y) = xy, which describes the enjoyment Emi gets from consuming s (x)…
A: Equilibrium condition: MRSxy = Px/Py
Q: Caleb has an Income of $100 and a utility function u(x.y)-2x 4y. Say that the price of x is $4 and…
A: Utility: It refers to the level of the satisfaction. The more satisfaction will help the consumer to…
Q: Bill gets 100 utils from eating one candy bar per day. He gets 120 utils from eating tw candy bars…
A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…
Q: Suppose that Omar’s marginal utility for cups of coffee is constant at 5.5 utils per cup no matter…
A: Utility refers to the satisfaction gained by the consumers through the consumption of a service or a…
Q: Angela has $90 to spend on movies and books. The price of movies (M) is $10 and the price of books…
A: PM= $10 PB= $15 I= $90
Q: 3. To maximize her utility, Nada should consume: O More milk O More honey O More honey and more milk…
A: Marginal utility is the state of being satisfied with the consumption of one extra unit of product…
Q: O A) Jim and Sally have increasing marginal utility. B) Jim has increasing marginal utility and…
A: Marginal Utility (MU) = Total utilityn - Total Utilityn-1
Q: Connie has a monthly income of $20.00 that she allocates among two goods: meat (M) and potatoes (P)…
A: Answer - Part (a)-Answer -Given in the question -Monthly income of Connie( M) = $20 Connie's goods…
Q: Suppose that a consumer considers coffee and tea to be perfect substitutes, but he requires two cups…
A: suppose that a consumer considers coffee and tea to be perfect substitutes, but he requires two cups…
Q: Assume x is beer and y is pizza and assume Caspar's utility function were Ulx, y) = min{8x, 4x +…
A: Utility shows the satisfaction or pleasure that consumers receive for consuming a good or service.…
Q: The following table shows Ellie's utility from consuming slices of cake and cans of 7- Up. 5-…
A: MUs is Marginal Utility from Slice Ps is Price of a Slice MUc is Marginal Utility from Can Pc is…
Q: Which of the following statements about utility and preferences is false? O I Sidra prefers tea to…
A: Utility measures the satisfaction that people receive form consuming a good or service.
Q: When you refuse to drink one more cup of coffee, you are making the statement that the marginal…
A: Marginal utility states that when consumer are get additional level of satisfaction by consuming an…
Q: Total utility diminished as the quantity of a good increases increases as long as more goods are…
A: Total utility refers to the overall satisfaction obtained by an individual from the consumption of a…
Q: Marie's marginal utility for playing one more game of Dance Dance Revolution at the arcade is 10…
A: Given, Marginal utility from an additional game of dance revolution = 10 utils Marginal utility from…
Q: The law of diminishing marginal utiliy stutes that O marginal utility is negative O marginal…
A: Utility is the name given to the satisfaction that is derived by an individual after consuming a…
Q: ADVANCED ANALYSIS Let: MUA/PA ZA= 10 -1 MUB/PB ZB= 21-2y, where z is marginal utility per dollar…
A:
Q: Which of the following is true about utility? O Utility same for all the consumers O Utlity is…
A: 1st option - incorrect Utility is not same for all consumers. It varies from person to person. 2nd…
Q: The table below shows Martha’s total utility from burgers and pasta. Suppose that the price of a…
A: a) Given below is the table which shows MU and MU/P ratio. Quantity of Burger per week Total…
Q: Suppose that price of good X rises by 25 % while price of Y rises by 50% and Incom rises by 50%.…
A: Answer: If the slope of the budget line falls in absolute terms then the budget line will be…
Q: Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If…
A: Given information: Price of soda (PS) = $2 Marginal utility of 4th soda (MUS) = 100 Price of hot dog…
Q: Slove the attachment
A: The consumer is in equilibrium when the marginal rate of substitution (MRS) is equal to the price…
Q: Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup no matter…
A: To address this inquiry, we first need to figure the marginal utility per dollar for doughnuts.…
Q: Kyle's utility function is U = 2.7X +2.7Y, where X is units of good X and Y is units of good Y. What…
A: Marginal utility of good X can be calculated by differentiating utility function partially wrt X.…
17
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utility—maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round—trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
- Would you expect total utility to rise or fall with additional consumption of a good? Why?Who determines how much utility an individual will receive from consuming a good?Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
- Mylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?Total utility is maximized in the consumption oftwo goods by equating thea. prices of both goods for the last dollar spenton each good.b. marginal utilities of both goods for the lastdollar spent on each good.c. ratios of marginal utility to the price of bothgoods for the last dollar spent on each good.d. marginal utility of one good to the price ofthe other good.Amadea spends all her income on pizza,chocolate milk, and music streams. The price of pizza is $4 per slice and price ofchocolate milk $2 per bottle. At Amadea's current consumption level, her marginalutility for pizza is 50 units per slice and for music 100 units per stream. Assuming thatAmadea is a utility maximizer, how much is (a)her current marginal utility for a bottleof chocolate milk, and (b) the price of streams she buys. Show your work. [Hint: Ch 6:Utility-maximizing formula)
- John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Supposethat John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?John’s preferences for Orange (O) and lemons (L) are represented by the funtion U(O, L)= O+2L. The oranges cost £2 and the lemons £1. Given that John’s monthly income is £30 answer the following questions: What type of goods are oranges and lemons for John? What is the proportion to which John is willing to exchange Oranges for Lemons? Illustrate and solve graphically John’s utility maximization problem. If his income increases every month by £10, how will John’s consumption choice be affected? Illustrate graphically the income expansion path and the Engel curve for each good. How will an increase in the price of Lemons to £6 affect John’s optimal consumption choice? (John’s income is £30) Graph John’s demand curve for each good. Assume that John wins a voucher of £20, redeemable only in Oranges. How would this affect John’s utility? (Assume that prices and income are as described initially) Assume that John is presented with two options: an Orange voucher of £20 or just £6 to spend…Five consumers have the following marginal utility ofapples and pears:Marginal Utilityof ApplesMarginal Utilityof PearsClaire 6 12Phil 6 6Haley 6 3Alex 3 6Luke 3 12The price of an apple is $1, and the price of a pear is$2. Which, if any, of these consumers are optimizingtheir choices of fruit? For those who are not, howshould they change their spending?