Question 3 The equilibrium condition which maximizes the satisfaction of a consumer is given by: P X = P Y MU X = MU Y MU X / Q X = MU Y / Q Y None of the suggested options MU X / P X = MU Y / P Y
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Question 3
The equilibrium condition which maximizes the satisfaction of a consumer is given by:
P X = P Y
MU X = MU Y
MU X / Q X = MU Y / Q Y
None of the suggested options
MU X / P X = MU Y / P Y
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Solved in 2 steps
- The marginal utility of the last unit of apples consumed is 12, and the marginal utility of the last unit of bananas consumed is 9. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium? Multiple Choice $3 and $4 $4 and $3 $9 and $12 $15 and $10On Sundays, people in Los Angeles consider a boat to Catalina Island to spend the day on the beach there. The utility that a person gets from visiting Catalina is 1-[n/10] – p , where n is the number of visitors on the island and p is the price of round-trip transportation (by boat). (Note that a visitor obtains more satisfaction if there are fewer other visitors on the island). The utility of staying home is zero. In equilibrium, how many people visit the island on a given Sunday? ( Your answer should depend on p.)Question 8 The price of good X is $1.50 and that of good Y is $ 1. A particular consumer who evaluates the marginal utility of Y to be 30 utils and is in equilibrium with respect to purchases of X and Y must consider the marginal utility of X to be: 15 utils none of the suggested options. 30 utils 45 utils 20 utils
- When the marginal value of eating the fifth unit of a good is 6 and the overall utility of all five units is 162, the total utility of ingesting four units must be Multiple-choice questions 168. 27. 156. 972.Question 14: Market pressures continually swing back and forth, driving towards a particular price where the quantity supplied equals the quantity demanded. This point is called A Maximum Supply B Minimum demand C Optimal Utility D Price EquilibriumThe marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 9. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium
- Refer to Figure 21-22. When the price of X is $80, the price of Y is $20, and the consumer’s income is $160, the consumer’s optimal choice is D. Then the price of X decreases to $20. The income effect can be illustrated as the movement from Group of answer choices D to E. D to C. C to E. E to D.The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is 20 then the marginal utility of good "b" must be ________ to have an optimum combination of goods purchased. 80 20 60 4With the aid of a diagram, describe a corner solution and explain the axioms of consumer choice.
- Question 2 True or False Provide a brief explanation For the Cobb-Douglas utility function the optimal choice of good i is independent of the price of good j. Full explain this question very fast28. Alternatives that are all equal satisfying to a consumer are illustrated by a) an indifference curve b) a supply curve c) a budget line d) a trade offAssume that the image shows a demand for steak. Which choice would show an increase in income of buyers will change demand from:A. D1 to D2.B. D2 to D1.C. D3 to D2.D. D3 to D1.
