ive an example of inferior good and an example of normal good that you have encountered and how has change in income affected your spending in each case.

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: Discuss it in your own understanding and then give example of the following:   Utility and Demand

A: The utility is the satisfaction which is derived from the consumption of goods or commodities.

Q: ) Causes consumers to become sadder if they like the good on the vertical axis. O Causes consumers…

A: Indifference curve is an economic tool to describe the combination of two products consumed by a…

Q: Draw a budget constraint and indifference curve for Pepsi and Pizza on the same graph. Show the…

A: As we answer only 3 subparts and the question has more than 3 subparts, we would be answering the…

Q: The price of a hot dog is $1, the price of a movie ticket is $,5 and the consumer has $13. A…

A: Optimal choice - It is the best combination of goods which will lead to the best satisfaction of the…

Q: Popeye's income declines, and as a result, he buys more spinach. Is spinach an inferior or a normal…

A: Normal goods are those good which increases the demand for good when the income of the consumer…

Q: What do you understand by price line and budget line? Assuming that a consumer has a monthly income…

A: Budget Line(BL) shows all of the possible combinations of two goods that a consumer can purchase,…

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

A: Normal goods and inferior goods are characterized based on how a good's demand responds to a change…

Q: Market Demand Curve 12 Quenty Demanded Fon Nam Markat Demand Price 10 Yeg Som Gob Yam 10 2. 4. 4. 1.…

A: Answer: Correct options: (C) The 5th unit of the good Fon consumes is worth less than $6 to her. and…

Q: Donna and Jim are two consumers purchasing strawberries and chocolate. Jim’s utility function is…

A: MUx (for Jim) = y MUy (for Jim) = xPx = $2     and  Py = $4   ( as given in another subpart of…

Q: . You consume only coke and pasta. One day, the price of coke goes up, the price of pasta goes down,…

A: The IC (indifference curve) represents the combinations of two products that yield the same utility…

Q: Billy Madison consumes 100 units of X and 50 units of Y. The price of x rises from 2 to 3. The price…

A: Budget set shows the combinations of two goods that can be consumed with given level of resources.

Q: Study the type of goods given below and select the one that is not an exception to law of demand. a.…

A: Law of demand - other things being constant, there is inverse relationship between price and…

Q: Raphael consumes only cheese and crackers. True or False: Cheese and crackers can both be inferior…

A: Inferior good refers to a good whose demand decreases as income of the consumer increases. Both…

Q: natory discussion of the graph is required with reference to price and quantity.

A: A rational consumer always aims to maximize his/her utility with a given level of income. The…

Q: Draw the consumer’s budget constraint (put mask on the horizontal axis). What is the slope of this…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a) Jim buys gingerbread and candy, both of which are normal goods. When the price of gingerbread…

A: Income effect refers to the change in the quantity of good due to change int he price of that good,…

Q: how do I illustrate an increase in a price of an item resulting in consumers buying another item

A: Law of demand says the more of goods is purchased at low price and vice versa keeping other factors…

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: Good X A B IC2 Good Y | The rotation of the budget line from red to blue depicts an increase in…

A:

Q: Popeyes's income declines, and as a result, he buys more spinach. Is spinach an inferior good or a…

A: Inferior goods are those goods whose demand fall with the rise in buyers income and vice versa.

Q: The first unit of the good that Ying consumes is worth $1 to her. O The 4th unit of the good Som…

A: In order to answer this question, we analyse each of the options separately.

Q: Yakov consumes only cheese and crackers. Cheese and crackers    both be inferior goods for…

A: According to inferior goods, as person’s income rises, the demand for inferior goods decreases.…

Q: When the price of good 1 decreases, the following is true (select all that applies): a) If good 1 is…

A: Goods refers to the products that meet human desires and give usefulness, such as a gratifying…

Q: Using the consumer choice theory, explain how an individual decides how to adjust her preferred…

A: Consumer choice theory: It refers to the idea in which the consumers will try to purchase to…

Q: Give examples of goods with high utility and high prices, andgoods with low utility and low prices.

A: If a person consumes a normal good, his marginal utility decreases on every additional good he…

Q: Using the consumer choice theory, explain how an individual decides what combinations of different…

A: Consumer choice theory refers to the theory wherein the consumers’ preferences are considered to be…

Q: Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U=…

A: The equilibrium in consumer behavior arrives when a buyer extracts the highest amount of utility…

Q: What happens to consumption of a normal good when its price increases?

A: Normal goods are those whose demand increments as individuals' purchasing power and incomes rises.…

Q: Explain how an increase in a person’s income can lead to lower consumption of         an…

A: The inferior commodities are those commodities whose demand rises as the income of the people fall.

Q: State and explain the law of diminishing marginal utility .Why does the law operate ?

A: The utility is the want satisfying power of the commodity. The preference of the consumer depends on…

Q: ketch a person’s indifference map and budget line for two goods, X on the horizontal axis and Y on…

A: Initially, the optimal bundle is (X*,Y*).The optimal consumption point is E1. (a) A rise in the…

Q: Rubyhas just finished her economics exam and must decide whether to spend two hours going to the…

A: Given the marginal utility of beauty parlor = 36 utils Marginal utility from pizza = 24 utils…

Q: Alex distributes his monthly income of $600 between two goods, movies and food. By spending his…

A: here we calculate the budget line of Alex by using the given information and choose the correct , so…

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: Problem 1 In the following scenarios, is the good described a normal good, an inferior good, or is…

A: The demand of a good represents the willingness to buy the good backed by purchasing power. Demand…

Q: Suppose a person allocates a given budget between food and clothing. If food is an inferior good can…

A: Demand for Inferior goods decline with an increase in income.

Q: ow does the law of diminishing marginal utility relate to changing income? Select one: a. The…

A: Marginal utility is the utility that is derived by consuming one extra unit of the good.

Q: Sumaiya, who consumers Pepsi and pizza, gets a raise in her income from $200 to $300 Pepsi costs her…

A: For normal good, an increase in income causes a consumer to buy more of a good and with increase in…

Q: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…

A: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…

Q: Marginal Utility of X (units of utility) Marginal Utility of Y (units of utility) Price of X ($) 12…

A: Answer to the question is as follows: