(Table) In the table, assume that a consumer has a budget of $75. Movies cost $15 per movie (with popcorn), and dinner costs $15 per dinner. Utility will be maximized by buyingHint: You will need to create a few extra columns to solvePrice Movie = $15.00Price Dinner = $15.00Movies per Total UtilitymonthEating out Total Utilityper month51355041252901101252904155155175O A. 2 movies /3 dinnersO B. 1 movie / 4 dinnersO C.4 movies / 1 dinners.O D.3 movies /2 dinnersO E. there is no combination of goods that maximize utilityMoving to another question will save this response.Question 1 of 75PrivTerrMacBook Pro吕0DIIDDescF4F5F6F7F8F9F10F11F12F1F2F3%2324&124578.{QWERYtabDFGつKcaps lockP# 3

Utility is the want satisfying power of a commodity. It refers to the number of units consumed by an…

(Table) In the table, assume that a consumer has a budget of $75. Movies cost $15 per movie (with popcorn), and dinner costs $15 per dinner. Utility will be maximized by buying Hint: You will need to create a few extra columns to solve Price Movie = $15,00 Price Dinner = $15.00 Movies per Total Utility month Eating out Total Utility per month 135 1. 50 4. 125 2. 90 110 3. 125 90 155 55 175 OA. 2 movies /3 dinners O B. 1 movie / 4 dinners O C.4 movies/1 dinners. O D.3 movies /2 dinners O E, there is no combination of goods that maximize utility A Moving to another question will save this response. Question 1 of 75

(Table) In the table, assume that a consumer has a budget of $75. Movies cost $15 per movie (with popcorn), and dinner costs $15 per dinner. Utility will be maximized by buying Hint: You will need to create a few extra columns to solve Price Movie = $15,00 Price Dinner = $15.00 Movies per Total Utility month Eating out Total Utility per month 135 1. 50 4. 125 2. 90 110 3. 125 90 155 55 175 OA. 2 movies /3 dinners O B. 1 movie / 4 dinners O C.4 movies/1 dinners. O D.3 movies /2 dinners O E, there is no combination of goods that maximize utility A Moving to another question will save this response. Question 1 of 75

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Similar questions

Would you expect marginal 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.
Is it possible for total utility to increase while marginal utility diminishes? Explain.
A5 Suppose Will consumes 5 units of good X and receives 20 utils from the first unit, 18 from the second, 12 from the third, 7 from the fourth, and 1 from the fifth. The total utility Will receives from consuming 5 units is 50 utiIs. 58 utiIs. 40 utils 45 utils
1-Which of the following provides a higher marginal utility, a diamond or a pint of water? A dimond A point of water They prodive about the same marginal utility 2- Unit of Apples MU of Apple Unit of Oranges MU of Oranges 1st 4 1st 9 2nd 3 2nd 3 3rd 1 3rd 2 4th 0 4th 0 Suppose the price of an apple is $2, and the price of an orange if $3. You have a budget $10 for these two items. What would you put in your basket first? an Apple an Orange You are indifferent between putting an apple or an orange in your basket. We do not have enough information to answer this question.
#10. Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the a. marginal utility of each decreases. b. marginal utility of each becomes negative. c. total utility of each becomes negative. d. marginal utility of candy bars and ice cream bars is equal. e. total utility of candy bars and ice cream bars is equal.
21. The budget constraint:(a) Represents the set of all baskets the consumer can afford(b) Represents the set of all baskets the consumer can afford while spending all availableincome(c) Represents the set of all baskets that give the consumer the same level of utility whileholding spending constant(d) Represents the set of all baskets in which the consumer purchases only one of the goods
11)Which of the following describes what happens to a consumer's budget line if that consumer's budget increases? The budget line. A) becomes steeper. B) shifts farther away from the origin of the graph. C) does not change. D) becomes more horizontal. E) shifts closer to the origin of the graph
1. What is the slope of the consumer’s budget line? Interpret economically.2. Graph the budget line showing all the different combinations of good ? (drawn on the horizontal axis) and good ? (drawn on the vertical axis) that can be bought given the consumer’s total income. In the graph, indicate the y-intercept and x-intercept of the budget line.
4. Suppose a person has $8 to spend only on apples and bananas. Apples 1 cost $0:4 each, and bananas cost $0:1 each. Furthermore, his preferences for apples (A) and bananas (B) can be represented by U = pAB. a) If A = 5 and B = 80, what will utility be?b) If A = 10, what value of for B will provide the same utility in part a? c) If A = 20, what value of for B will provide the same utility in parts a and b?d) Graph the indi§erence curve implied by parts a through c.e) Give the budget constraint, which of the points identiÖed in parts a through c can be bought by this person?f) show through some examples that every other way of allocating income provides less utility than does the point identiÖed in part b. graph this utility maximizing situation.
1. Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and orange juice, which you purchase at a mini mart. Each sandwich cost $150 and an orange juice is $75 per cup. Answer: a) Suppose your income increase from $1500 per week to $3000 per week. Construct a new table showing alternative combinations of sandwiches and cups of orange juice. Construct the new budget line. Why would this budget line be preferred to the old one with an income of $1500?
2. The ability of consumer to maximize utility is constrained by the amount they have to spend. And this is called a