Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Refer to the attached picture for the table.1. Fill in the Marginal Utility columns above.2. What will be Terry’s total utility from both leisure and income when working 20 hours per week? AutoSaveOffAssignment 5.1 Utility AnalysisP SearchMaekyah Conley MCO XFileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpÉ ShareP CommentsX CutB CopyO Find-Calibri (Body) v 10 - A A Aa v AoAaBbCcI AABBCCI AaBbC AaBbC AaBbCcDReplacePasteS Format Painter1 NormalI No Spac. Heading 1 Heading 2 Heading 3BIU v ab x, x' A- I v A vA SelectDictate SensitivityClipboardFontParagraphStylesEditingVoiceSensitivityTerry attends college and works part-time in a drug store. She can work up to 40 hours eachweek and is paid $9 per hour. The following table shows her utility from different levels ofleisure and income.Total Utilityfrom Leisure Utility ofWorkTotal UtilityMarginalUtility fromHours ofMarginalIncomeLeisureHoursfrom IncomeLeisureIncome5184535103410905915481513577205620180862560252259230653027098356935315103407240360107Page 1 of 2D Focus488 words110%11:16 AMP Type here to searchW4/26/2021近

Marginal utility : the marginal utility of a good is the change in the utility from an increase in…

Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Total Utility Marginal Utility of Total Utility from Income Utility from Work Income Marginal Leisure from Leisure Hours Leisure Income 5 18 45 35 34 10 06 135 10 59 15 48 15 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107

Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Total Utility Marginal Utility of Total Utility from Income Utility from Work Income Marginal Leisure from Leisure Hours Leisure Income 5 18 45 35 34 10 06 135 10 59 15 48 15 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 1E

See similar textbooks

Similar questions

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.
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?
Is it possible for total utility to increase while marginal utility diminishes? Explain.
Please no written by hand and no emage Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils.a) Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b) Calculate the optimal weekly consumption bundle for this consumer.c) Does the consumer view C and S as complements or substitutes?
A consumer has a utility function U(X,Y ) = X1/2 Y1/2 . Prices of the goods are pX = £10 and pY = £5, respectively, and the consumer has income M = £200 to spend on X and Y. Currently, she buys 2 units of good X and spends the rest of her income on good Y.a) Determine this consumer’s current utility level. b) Computetheconsumer’smarginalutilitiesofgoodsXandY. c) Explain why the consumer’s current consumption of goods X and Y is not optimal. Should she substitute X for Y or vice versa? The consumer’s marginal rate of substitution is MRS = Y/X.d) Determine this consumer’s optimal consumption of both goods. e) By how much does the consumer’s utility increase when she consumes the optimal bundle?
TU = Total Utilityf= is a function ofMU = Marginal UtilityO = units of consumptionA= infinitesimal change EMV= Equimarginal Value
I like drinking Smirnoff and Stoli Vodka, but I really only careabout the total amount of alcohol I get out of it. They areperfect substitutes. Smirnoff is sold in liter bottles that are100 proof (that’s 50% alcohol). Stoli is sold in liter bottlesthat are 80 proof (40% alcohol). What is my utility functionfor bundles of these two vodkas? What do my indifferencecurves look like?
part D E F solution needed Question 1Elmira has a monthly income of $200 that she allocates between two goods: Beef (B) andPotatoes (P). Beef costs $6 per pound while Potatoes cost $1 per pound. Elmira’s utilityfunction is given by: U(B, P) = 2B + P Assume that both Beef and Potatoes are finelydivisible goods (so your answer may or may not be a whole number). This questioncontains 6 parts, (a)-(f)) (a) Write down the equation for Elmira’s indifference curves. (Assume Beef is measuredon x-axis and Potatoes on y-axis) (b) Depict Elmira’s budget line graphically and mention its slope. (Again, assume Beef ismeasured on x-axis and Potatoes on y-axis) (c) Illustrate some indifference curve(s) for Elmira. (d) Find MRSBP . Do Elmira’s preferences have a diminishing Marginal Rate of Substitution? (e) What combination of Beef and Potatoes should Elmira buy to maximize her utility? (f) Determine Elmira’s utility at the utility maximizing choice.
If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unit
Graph the following dataQuantity marginal utility1 153 2 112 3 77 4 48 5 25 6 8 7 -3 8 -8
Quanity Utility from Video Games Utility from Novels Marginal Utilty Video Games Marginal Utilty Novels Marginal Utilty per Dollar Video Games Marginal Utilty per Dollar Novels 0 0 0 1 30 30 2 40 38 3 48 44 4 54 46 5 58 47 The table shows the utility that Mark gets from the consumption of video games and novels. Mark has $100 per month to spend on video games and novels. Video game cost $20 each and novels cost$20 Calculate Mark’s utility from Video game Novels Calculate the MU per dollar of Mark’s consumption choices State the optimal number of video games and the optimal number of novels that Mark will conume in a month. State how each of the following will affect the quantity of VG and N consumed by Abina An increase in the money she has to spend by $20, ceteris paribus An increase in the price of ONE of the goods, ceteris paribus