Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
Related questions
Question
Please answer both
Thank you
Transcribed Image Text:Calculate the elastielty for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) nd indicate the goods are
1. teor
2. Nomal
3. Complemens, or
4. Subses
(Please Include The Negative signs in your answers where appropriate and calculate to 2 decimal)
A. The price of gasoine inoreases tom 16 per barel te 30 per barel and as a resut, the demand per morth tor new cars changes from o o 00.
Part The elatoty Number
Part 2 These goods ae anwer using numbers, 14 Number
B. Asaresut of a change in income trom 1,975 to 3.475 per month, the consumpton of good X changes hrom 300 o 600 unts
Part 3 The elaty Number
Part 4 Good X is aan (anwer using numbers, 14) Number
C. As a resutof a decrease in the price of good Y trom 20 to 12 he demand for good Xchanges trom 150 o s00 units
Part The elastcty is Number
Part These goods areanswer using numbers. 14) Number
D. Asa res of an economie beom in Calgary the average income increases rom 2800 7.700 per month and as a result the demand tor new houses
Increases trom 180 to 20 units
Part 7 The elasticity is Number
Part New houses are acan) (anwer using numbers, 14 Number
Transcribed Image Text:Calculate marginal utility and marginal utilty per dollar for the data provided in the table below: (round to two decimal places)
The Price of wine is 3
The Price of Cheese is 0.14
The Consumer's budget for wine and Cheese is 9.69
(CHEESE)
(CHEESE)
(CHEESE)
WEDGES
OF CHEESE
GLASSES
(WINE)
(WINE)
(WINE)
MARGINAL UTILITY
MARGINAL
MARGINAL UTILITY
MARGINAL
UTIUTY/dollar
OF WINE
TOTAL UTILITY
TOTAL UTILITY
UTIUTY/dollar
70
Number
Number
Number
Number
160
35
Number
65
Number
225
3.
41
Number
Number
Number
Number
45
288
Number
61
Number
48
349
The Quantity of Wine this consumer would buy to maximize utlity is: Number
Number
The Quantity of Cheese this consumer would buy to maximize utilit is :
What is the consumer's Total Utility when optimized: Number
10
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