Suppose a person allocates a given budget between food and clothing. If food is an inferior good can you tell whether clothing is inferior or normal? Explain.

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…

Q: Differentiate between normal goods and inferior goods

A: Normal Goods: - Normal goods are those goods whose demand increases when the income of the consumer…

Q: 10) A consumption points inside the budget line A) is unaffordable. B) shows that the consumer…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

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: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Since you have asked multiple questions, we will answer the first question for you. If you require…

Q: A normal good An inferior good When the price of this commodity rises, the substitution effect is…

A: If customers don't buy much less of a good whilst income rises then it's a NORMAL GOOD, for this…

Q: As an individual consumes more and more of a good, each additional unit brings about less and less…

A: Marginal Utility refers to the additional satisfaction derived from consumption of an additional…

Q: The marginal utility of the last unit of apples consumed is 10, and the marginal utility of the last…

A: The ratio of the marginal utility of two products is equal to the ratio of prices of the two…

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: An increase in a consumer's income causes her budget set to encompass […

A: When consumers income increases,more goods would be bought with the same amount of income.

Q: The table below contains information about the total utility you gain from coffee you buy from a…

A: The TU {total utility} is described as the total satisfaction that a customer can derive from the…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Indifference curve shows the combination of two goods which give a consumer same level of…

Q: If a consumer always wishes to consume peanut butter and jam in fixed proportions, he treats these…

A: The consumer either uses jam or peanut butter in normal cases if the price of jam increases then the…

Q: commodity. In other words, It is the utility derived from each additional unit. Marginal Utility…

A: Option A Marginal Utility It is the change in total utility which is attained when an additional…

Q: Evaluate your marginal and total utility of consuming at an all you can eat pizza buffet. Explain…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they…

A: Marginal utility per dollar is the amount of utility obtained by the consumer from spending one more…

Q: If the consumer is consuming exactly two goods, and she is always spending all of her money, can…

A: We will use microeconomic concepts such as monotonicity, substitution effects, normal goods and…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Disclaimer:- “Since you have asked multiple questions, we will solve the first question for you. If…

Q: As a college student you work at a part-time job, but your parents also send you a monthly…

A: Budget constraint line shows the different possible combination of goods that can be purchased…

Q: Explain marginal utility. Then describe the law of diminishing marginal utility and provide an…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: In economics, utility refers to the overall satisfaction derived from the consumption of a good or…

Q: Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500.…

A: A budget line illustrates the combinations of two goods that are affordable to a consumer with a…

Q: Describe the point at which a consumer maximizes utility.

A: A rational consumer is going to be in equilibrium when his utility is maximized within a given…

Q: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: Amy is currently spending all of her budget and she finds that the marginal utility per dollar from…

A: We are going to discuss significance of marginal utility pe dollar to answer the question.

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: Imagine a hypothetical consumer is using all of their income on two goods, X and Y. The price of…

A: Given  Price of good X =$2 Price of good Y= $10 Additional units of utility from another unit of…

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

A: Inferior goods are those goods of which the demand for products decreases and income level…

Q: A consumer is in equilibrium when marginal utilities are

A: To find : When will consumer in equilibrium.

Q: True or false.  A budget constraint, budget line or budget set is a graphical way to illustrate all…

A: It's vital to remember that the slope of the budget line equals the cost ratio of two commodities.…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: The law of diminishing marginal / minimal utility indicates that as an individual gets even more a…

Q: Draw a budget line with good X on the x-axis and Good Y on the Y axis. Graphically illustrate the…

A: Price effect is basically a term that is used to describe the change in the demand preference of a…

Q: Nancy gets a quantity discount on both goods and pays less per units if she buys more. her budget…

A: Explanation:-   Nаnсy  gets  а  quаntity  disсоunt  оn  bоth  gооds  аnd  раys  less  рer  units  if…

Q: How can else  increase marginal utility and therefore the consumer demand curve?

A: marginal utility is the additional fulfillment a purchaser gets from having another unit of a decent…

Q: draw a budget constraint and indifference curves for pizza and pepsi .show what happens to budget…

A: A budget constraint refers to the different combinations of two commodities that can be consumed by…

Q: Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops,…

A: *Answer:

Q: Raymond consumes meatloaves and pineapples. He has decided that his monthly budget will be $1500.…

A: Given : M=budget=$1500 Price of meatloaf=$375 and price of Pineapple= $150 Let m be the quantity of…

Q: Explain whether the following statement is true, false, or uncertain. A consumer consumes two…

A: In a market, if the goods are complements like butter and jam, then a increase in price of bread…

Q: If the price of a cinema ticket is 20, the price of a concert ticket is 40 and the income is 120,…

A: Budget constraint shows the combination of two goods a person can afford given its income level and…

Q: Suppose Victoria has a budget of $66 that she spends on movies (Q1) and roller skating (Q:). The…

A: Budget constraint: - it is the representation of different combinations of two goods that a consumer…

Q: Suppose you consume xl unit of Goods 1 and x2 units of Goods 2, the utility you get is U(x1, x2) =…

A:

Q: Diminishing Marginal Utility. Explain the law of diminishing marginal utility Discuss an instance…

A: The idea of marginal utility is used to measure how individuals' satisfaction levels affected their…

Q: Given marginal utility per dollar of guavas is greater than marginal utility of apples, how will the…

A: A consumer is a person who buys products that are available in the market. He does it for satisfying…