The diamond-water paradox of value can be explained by O distinguishing between total utility and marginal utility. O water's high level of utility relative to diamonds. O water's low price relative to diamonds. O the fact that utility cannot be measured.

Q: Gillian is consuming her optimal consumption bundle of pizza and coke. The marginal utility…

A: Marginal utility is the extra utility received from consuming one additional unit of good per unit…

Q: If a consumer has rational, monotonic, and convex preferences, which of the following is true…

A: A change in the price of a product leads to a change in demand for that product. This is called the…

Q: Suppose that Wendy gets 15 units of utility from one muffin and 23 units of utility from two…

A: (1) The Principle of diminishing marginal utility says as we keep consuming units of a good, the…

Q: If a consumer consumes two goods, A and B, and the price of A falls, then the substitution effect…

A: Demand represents the volume of goods and services that the consumers are willing to buy at…

Q: If David John's preferences are represented by the utility function U(z1, I2) = #;Iz, how does the…

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Q: A. Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 (completeness,…

A: The concept that depicts when one good could in turn be used in place of another good providing the…

Q: 3. Suppose Andy lives in a usual world, where there are two goods. However, Andy has a very peculiar…

A: Indifference curve is downward sloping convex curve, shows various points of two goods which gives…

Q: 1. Based on the table below describe Marginal Utility and Diminishing Marginal Utility? What happens…

A: The utility is a term that is used to measure satisfaction or happiness in terms of economics. There…

Q: Suppose a consumer can purchase only two goods: pasta and rice. Let the quantity of pasta be…

A: Two goods- Pasta (y-axis) and rice(x-axis) The intercept on y-axis represents units of pasta…

Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…

A: Utility is maximised at a point where marginal rate of substitution is equal to the price ratio of…

Q: For any two goods (things you would like more of): Select one or more: O a. Indifference curves are…

A: The standard indifference curve analysis employs a simple two-dimensional graph. Each axis…

Q: Question 1 Considering a consumer's indifference curves, which statement is true? O utility is the…

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

Q: QUESTION 4 Diminishing marginal utility provides an explanation for the slope of the demand curve. O…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If one consumer's ratio of marginal utility/ price of orange is greater than that for apples, he is…

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

Q: Let the following table represents the total utility of a given consumer, in the cardinal utility…

A: Since you posted a question with multiple sub-parts, we will solve first three sub-parts for you. To…

Q: The utility maximizing point of a consumer from goods X and Y, subject to their budget constraint,…

A: The budget constraint reflects the constraints with the consumer. It shows the relationship between…

Q: For any two goods (things you would like more of): Select one or more: O a. Indifference curves are…

A: Indifference curve is the locus of different combination of two goods that a consumer can consume…

Q: Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the…

A: A consumer buys a product as it gives him utility and it purchases the good until its utility from…

Q: a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what…

A: As per the Bartleby answering policy you have posted multiple questions so only the first question…

Q: QUESTION 6 The diagram attached shows a consumer's indifference curves and budget lines, what might…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 3. Assuming a price of X (Px) and a price of Y (Py) are $ 1 each, the individual's income is $ 8 per…

A: The law of marginal utility states that as we consume more and more of a particular commodity, the…

Q: QUESTION 3 A consumer has $300 to spend on meat (good x) and vegetables (good y) per month. The…

A: Answer 3: Given, Price of meat Px=$6Price of vegetables Py=$2Slope=-PxPySlope=-62Slope=-3 Option B…

Q: If a consumer consumes two goods, A and B, and the price of A falls, then the substitution effect…

A: Substitute effect The substitution effect is the decline in sales of a product that results from…

Q: Holly will choose a combination of soda and water to buy. She has $12 to spend. Soda cost $3 and…

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Q: Evelyn loves to eat chocolate. However, every piece of chocolate that Evelyn eats provides her with…

A: Marginal utility (MU) is the change in the total utility because of consumption of an additional…

Q: Total utility of a product is calculated by: O Summing the marginal utility for the first and the…

A: Total utility of a product is the total sum of utility that consumer receive by consumption of goods…

Q: Refer to Figure#6. If the consumer was initially at point A in the figure, a movement from point B…

A: Demand, if a person is willing to buy a commodity and can purchase it then it is considered as…

Q: The paradox of value between diamonds and water is explained by the fact that the O total utility of…

A: ‘Utility’ or total utility refers to the satisfaction, which a consumer derives from consuming a…

Q: 3. To maximize her utility, Nada should consume: O More milk O More honey O More honey and more milk…

A: Marginal utility is the state of being satisfied with the consumption of one extra unit of product…

Q: 2. Suppose John's utility function is UX,Y) = 4VXY , where X is consumption of beer and Y is…

A: A good has diminishing marginal utility when marginal utility decreases with increase in units of…

Q: O A) Jim and Sally have increasing marginal utility. B) Jim has increasing marginal utility and…

A: Marginal Utility (MU) = Total utilityn - Total Utilityn-1

Q: It shows the different combinations that the consumers can purchase from good [X] and [Y), given the…

A: Demand curve shows inverse relationship between price and quantity demanded of a good.

Q: A consumer is spending all of her income and receiving 1000 utils from the last unit of good A and…

A: Marginal Utility refers to the additional satisfaction that a consumer derives by consuming an…

Q: Which of the following statements about utility and preferences is false? O I Sidra prefers tea to…

A: Utility measures the satisfaction that people receive form consuming a good or service.

Q: Suppose the price of beans is increased. Which of the following statements is true? Select one: O a.…

A: option c is correct answer  Vanesa indiffrence curve will  shift inward Due to increse the price of…

Q: Caleb has an income of $100 and a utility function u(x.y)-2x + 4y. Say that the price of x is $4 and…

A: The utility function denotes that good x and good y are perfect substitutes for Caleb. In the case…

Q: Table 6.1 Pretzels Marginal Utility 1 30 20 5 4 Refer to Table 6.1, which shows the marginal utility…

A: The indifference curve of a consumer shows the combinations of two goods that provide an equal…

Q: Binta always consumes Chick-fil-A chicken with Chocolate Milkshake, she will only have some utility…

A: Income and substitution effects:- The income effect can be explained as how customers' purchase of…

Q: Marginal utility is positive and increasing when: O Total utility is increasing in an increased rate…

A: Total utility (TU) is the amount of satisfaction that is received from the consumption of a good.…

Q: The figure at right shows Bobby's indifference map for juice and snacks. Also shown are three budget…

A: A budget constraint shows the combination of two goods that can be purchased by an individual with…

Q: 2. Preferences:a. Suppose Wendy consumes 10 sandwiches and 10 cups of coffee over the course of a…

A: The utility as a concept refers to the want satisfying power of an individual wherein the utility is…

Q: Total utility diminished as the quantity of a good increases increases as long as more goods are…

A: Total utility refers to the overall satisfaction obtained by an individual from the consumption of a…

Q: Suppose the price of beans is increased. Which of the tollowing statements is true? Select one: O a.…

A: With price of beans increased, the quantity consumed or purchased with respect to given budget will…

Q: Which of the following is true about utility? O Utility same for all the consumers O Utlity is…

A: 1st option - incorrect  Utility is not same for all consumers. It varies from person to person.  2nd…

Q: Suppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment…

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Q: Suppose that price of good X rises by 25 % while price of Y rises by 50% and Incom rises by 50%.…

A: Answer: If the slope of the budget line falls in absolute terms then the budget line will be…

Q: 3. Balancing utility and price Suppose Teresa has to choose between purchasing plane tickets and…

A: The utility gets maximized at the bundle where the marginal utility per dollar spent is the same for…

Q: Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If…

A: Given information: Price of soda (PS) = $2 Marginal utility of 4th soda (MUS) = 100 Price of hot dog…

Q: Utils, 8- 7- 6+ 5- TU 2 3 Which of the following characteristics of the total utility function is…

A: Total Utility is the overall amount of satisfaction receive by consumption of all the units of…

Q: O A) Jim and Sally have increasing marginal utility. O B) Jim has increasing marginal utility and…

A: Meaning of Marginal Utility: Marginal utility refers to an additional utility on account of the…