THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS.Please answer all questions. Thanks PLEASE ANSWER ALL THE 4 QUESTIONSFor Review purposesYou are choosing between two goods, X and Y, and your MU from each is shown in the table below.Units of XMUXUnits of YMUY11018227636444553546263For numbers 3 and 4, you may show it through graphthen take a picture of your graphs and make a separate attachment.1. If your income is $9 and the prices of X and Y are $2 and $1, respectively,what quantities of each will you purchase to maximize utility?what quantities of each will you purchase to maximize utility?How much would be your utility per product and what total utility will you realize?Note: Construct your own tabular illustration to fit the variables you need to solve this problem2. Assume that, other things remaining unchanged, the price of X falls to $1.What quantities of each will you purchase to maximize utility? How much would be your utilityper product and what total utility will you realize?Note: Construct another tabular illustration to fit the variables you need to solve this problem.3. Construct budget line.a. with money income of $9 and the prices of X and Y are $2 and $1, respectively.b. identify on the budget line the quantity of product X and Y that yields the maximum utility.c. Construct an indiference curve to show the tangent line where maximum utility is achived.Note: On the same graph construct another budget line.d. with money income of $9 and the prices of X and Y are $1 and $1, respectively.e. identify on the budget line the quantity of product X and Y that yields the maximum utility.f. Construct an indiference curve to show the tangent line where maximum utility is achived.4. Using the two prices and quantities of product X, derive a demand curve for product X.Note: Align the graph of the budget line with the graph od the demand curve for product X

Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3

Answered: THIS IS NOT A GRADED ASSESSMENT, READ…

Business

Economics

THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS. Please answer all questions. Thanks

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.2P

See similar textbooks

Related questions

Q: Operationalize the su

A: The shopping dissatisfaction can be operationalized by using multiple scales.I would use the scale…

Q: Operations strategy in the new economy is based on: focus on knowledge-based assets. data as the new…

A: In the market, operations strategy refers to an organizational production strategy to minimize cost…

Q: A new manufacturer and distributor of ice cream is going to be launched. The newly appointed CEO is…

A: Volume,variation in demand,visibility and variety are included in 4V analysis.

Q: The owner refuses to approve the current pay request. Can he do that? The GC pulls off the job and…

A: ANSWER: Answer to the question:- The owner refuses to approve the current pay request. Can…

Q: 3.Analyze the different indicators we have. You do not need to talk about all the indicators.…

A: An indicator is those which indicate the ongoing patterns and future events. They merely are the…

Q: Which of the following is a variable cost? a. Raw materials costs b. Interest payments c.…

A: Variable cost can be defined as the cost which depends on the level of output.

Q: Adidas produces shoes for sale at Macys, JC Penny and Footlocker. The company makes a few different…

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

Q: IS at is the ut and Yn is the potential output.

Q: A manager checked production records and found that a worker produced 225 units while working 50…

A: Productivity is a measure of economic performance that compares the amount of goods and services…

Q: a. Prepare the scatter diagram and insert the trendline or line of best fit. Use a scale of 2 cm to…

A: Variable cost per unit = higher number of units cost - lower no. of units cost higher no. of units…

Q: the delimitations? Delimitations are influences that the researcher cannot control. Delimitations…

A: ANSWER 11) d) delimitation refers to the shortcomings , conditions or influences that cannot be…

Q: a. Write a rule for the amount she would receive (revenue), R dollars, from selling s stockings and…

A: Given is the information : =>Cost of making and delivering 3 stockings =$125 => Cost of…

Q: Breakdown Approach Salesforce size = Forecasted sales / Average sales per salesperson Sleepy, Inc, a…

A: Sale force size is the planned process for achieving the optimal number of work for the role so ,…

Q: Prepare a composite (weighted) index for housing construction costs in 2008, using the following…

A: Weighted index is fraction of that years cost compare to total cost of all the year. In this table…

Q: A speculator thinks that a particular share that is now selling at $500 is likely to decrease in…

A: Given, Price then $500 Price now $450

Q: The transitions that our economy has witnessed in the past 8-9 months have been unprecedented. Many…

A: 9-M Totality Quality of Mission,Manpower, Money, Machines, Method, Material, and Marketing is the…

Q: Case Study Alison Mitchell joined The Look three months ago. The Look is a high street clothes…

A: Production is the process of merging numerous material and immaterial inputs (plans, know-how) to…

Q: A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the…

A: The general increase in the price level is known as the inflation. Consumer price index (CPI) is a…

Q: The correct statement is: * The product life cycle is faster in more developed and developed…

A: Product life cycle refers to the period starting from when the product is introduced in the market…

Q: organization. In this Ins се, Farid has been directed to study the of the organization.

A: Given that there has been study of suppliers, marketing intermediaries, public and competitors that…

Q: Do you think that someone could be a good systems manager but a poor project manager? What about the…

A: Meaning of Managerial Economics: The term managerial economics refers to the scenario of the…

Q: pods was $2,129. onse as an index number rounded to one decimal place.)

A: The index number measures the relative change in the price level.

Q: The wage for union labor compared to non-union labor is: Select the correct answer below: the same…

A: The economics as a study is considered to be a vast area of study. The basic idea of this whole…

Q: "Product may be an idea, a physical entity or a service or any combination of the three." a.…

A: The process of economic production is an activity that is carried out under the supervision and…

Q: Thank you very much for your help! Which one from the above would you say it will be the correct…

A: (FDI) Foreign direct investment happens when an investor established in one country (the residence…

Q: This is not a graded module. I need to be explained what it means. I dont understand.

A: Answer: Introduction: The graph in the question shows the equilibrium condition of either monopoly,…

Q: What is the type of market that Spuds Farm operates in -- is Jeff Spud a price taker or price maker?

A: Spud farm is a potato farmer that produces medium sized potatoes. This implies that potatoes…

Q: • Identify the following into tasks, experiences and performance measures. a) A sensor in a car is…

A: Task: It refers to the work that is to be performed by the one who is supposed to do it. The task is…

Q: A manager checked production records and found that a worker produced 225 units while working 50…

A: Productivity is a measure of economic performance that compares the amount of goods and services…

Q: SurveyDonkey.com studied North Carolina cities to determine the best place to live in the state. The…

A: Mooresville may be a fast-growing community that has been great to get older in. it's been built up…

Q: Person Status Jake is a 21-year-old professional tennis player. When he's not competing, he works as…

A: The unemployment rate refers to the fraction of the labor force in an economy that is not employed.…

Q: More people decide to major in nursing and fewer people decide to major in engineering. All else the…

A: Given that more people are deciding to major in nursing and fewer people decides to major in…

Q: Define analysis,

A: Analysis: - it is the process of examining complex things to understand their nature.

Q: Write down the name of the sections of the report. (a) What questions are answered in each section?…

A: Answer 1. Every report should have the following sections. Title Page Table of Contents Executive…

Q: Unlike an accountant, an economist measures costs on a(n) ________ basis. explicit replacement…

A: Economics examines human actions about economic goods production, use, and trade. Accounting, on the…

Q: Why is it important for managers to understand the concept of break-even points? Are there any…

A: Break-even point is a point where total sales is equal to total revenue, in other words where there…

Q: A small business sells T-shirts during the Lasallian Week Festival. It is estimated that the…

A: production cost is the monetary value incurred on Factor of production during process of production…

Q: Discuss the difference between accuracy and precision.

A: The area of distribution, production, and trade along with consumption of various services and goods…

Q: Using the demand function that you estimated in the previous problem Calculate demand and total…

A: PRICE ELASTICITY OF DEMAND: Price elasticity of demand measures how much a product's consumption…

Q: Question 5. A quantitative research project is recording the hourly concentration of CO (carbon…

A: We will use definitions such as Nominal data; Ordinal Data; Interval Data and Ratio Data to answer…

Q: g. An earthquake destroys many structures in Gebze industrial zone. The structures are not rebuilt…

A: g. An earthquake destroys many structures in Gebze industrial zone. The structure is not rebuilt…

Q: The endpoint method computes the percent change as a percent of the starting value. | The endpoint…

A: Price elasticity of demand indicates the responsiveness of quantity demanded to a change in the…

Q: 39) Increasing returns to scale indicates that a) a decrease in the scale of production will cause…

A: Increasing returns to scale exists when the output increases in a greater proportion than the…

Question

THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS.

Please answer all questions. Thanks

PLEASE ANSWER ALL THE 4 QUESTIONS
For Review purposes
You are choosing between two goods, X and Y, and your MU from each is shown in the table below.
Units of X
MUX
Units of Y
MUY
1
10
1
8
2
2
7
6
3
6
4
4
4
5
5
3
5
4
6
2
6
3
For numbers 3 and 4, you may show it through graph
then take a picture of your graphs and make a separate attachment.
1. If your income is $9 and the prices of X and Y are $2 and $1, respectively,
what quantities of each will you purchase to maximize utility?
what quantities of each will you purchase to maximize utility?
How much would be your utility per product and what total utility will you realize?
Note: Construct your own tabular illustration to fit the variables you need to solve this problem
2. Assume that, other things remaining unchanged, the price of X falls to $1.
What quantities of each will you purchase to maximize utility? How much would be your utility
per product and what total utility will you realize?
Note: Construct another tabular illustration to fit the variables you need to solve this problem.
3. Construct budget line.
a. with money income of $9 and the prices of X and Y are $2 and $1, respectively.
b. identify on the budget line the quantity of product X and Y that yields the maximum utility.
c. Construct an indiference curve to show the tangent line where maximum utility is achived.
Note: On the same graph construct another budget line.
d. with money income of $9 and the prices of X and Y are $1 and $1, respectively.
e. identify on the budget line the quantity of product X and Y that yields the maximum utility.
f. Construct an indiference curve to show the tangent line where maximum utility is achived.
4. Using the two prices and quantities of product X, derive a demand curve for product X.
Note: Align the graph of the budget line with the graph od the demand curve for product X

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given Information

Part A

Part B

Part C

Note:-

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Draw Maries budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of me budget constraint?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
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?
Who determines how much utility an individual will receive from consuming a good?
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
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.