stion 51The following marginal utility data is for products X and Y. Assume that the prices of x and Y are 54 and $2 respectively and that theconsumer's income is $18weteredd out ofUnitsMarginalUnitsMarginalutility, Yof Xutility, Xof Yove fiag20162162.1431231248.4105.8.64.6Which of the following shows the price and quantity demanded of X?(A)(B)(C)(D)QdPQdQdQdP.$4$42$43$43.25.2.429.Select one:O a.column (B)O b. column (A)O c. column (C)O d.column (D)

Utility is maximized when marginal utility per dollar of each good is same and expenditure on the…

stion 51 The following marginal utility data is for products X and Y. Assume that the prices of x and Y are $4 and $2 respectively and that the consumer's income is $18 wet ered d out of Units Marginal Units Marginal of X utility, X of Y utility, Y ove fiag 20 16 2 16 2. 14 3 12 3 12 4 8. 4 10 6 4. Which of the following shows the price and quantity demanded of X? (A) (B) (C) (D) Qd P Qd P Qd Qd P. $4 $4 $4 3 $4 3. 2 5. 2. 4 2 9. Select one: O a. column (B) O b. column (A) O c. column (C) d. column (D)

stion 51 The following marginal utility data is for products X and Y. Assume that the prices of x and Y are $4 and $2 respectively and that the consumer's income is $18 wet ered d out of Units Marginal Units Marginal of X utility, X of Y utility, Y ove fiag 20 16 2 16 2. 14 3 12 3 12 4 8. 4 10 6 4. Which of the following shows the price and quantity demanded of X? (A) (B) (C) (D) Qd P Qd P Qd Qd P. $4 $4 $4 3 $4 3. 2 5. 2. 4 2 9. Select one: O a. column (B) O b. column (A) O c. column (C) d. column (D)

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 4SQP

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Similar questions

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 roundâ€”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.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
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.
The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called closing the Washington Monument. When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the Washington Monument strategy is So misleading. Hint: If you are really trying to make the best of a budget cut, should you cut the items in your budget with tile highest marginal utility or line lowest marginal utility? Does the Washington Monument strategy cut the items with the highest marginal utility or line lowest marginal utility?
As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
Is it possible for total utility to increase while marginal utility diminishes? Explain.