D and E please The table below shows the total benefit, in dollars, that Andrew derives fromconsuming two goods, cheeseburgers and Good J.TotalQuantity ofCheeseburgersQuantityof GoodTotal Benefit ofBenefitCheeseburgersofJGood J$0$01$401$302$702$503$903$654$1004$75$105$80$105$83Andrew has a limited weekly income of $65, and he spends it all on cheeseburgers andGood J. Assume the price of each cheeseburger is $10 and the price of Good J is $5per unit.(a) Calculate Andrew's consumer surplus from the second unit of Good J. Show yourwork.(b) Identify the quantity of cheeseburgers and the quantity of Good J that willmaximize Andrew's total benefit given his weekly income. Explain using marginalanalysis.(c) If Andrew's weekly income increases from $65 to $75, would Andrew be able to buy5 cheeseburgers and 6 units of Good J? Explain using numbers.(d) Suppose the price of Good J decreases by 10% and Andrew buys 12% more ofGood J and 8% more of Good S. Based on this change, identify whether Good J andGood S are substitutes, complements, or not related. Explain using numbers.(e) Suppose instead that cheeseburgers are produced in a perfectly competitivemarket and the price of beef, an input to the production of cheeseburgers, decreases. Ifcheeseburgers are a normal good, will the quantity of cheeseburgers that willmaximize Andrew's total benefit increase, decrease, or stay the same? Explain.

Formula: Cross price elasticity = percentage change in quantity of good S/Percentage change in…

Total Quantity Quantity of heeseburgers Total Benefit of Benefit of Good Cheeseburgers of J Good J 1 $40 1 $30 $70 2 $50 3 $90 3 $65 4 $100 $75 $105 $80 6 $105 $83 has a limited weekly income of $65, and he spends it all on cheeseburgers and Assume the price of each cheeseburger is $10 and the price of Good J is $5 4)

Total Quantity Quantity of heeseburgers Total Benefit of Benefit of Good Cheeseburgers of J Good J 1 $40 1 $30 $70 2 $50 3 $90 3 $65 4 $100 $75 $105 $80 6 $105 $83 has a limited weekly income of $65, and he spends it all on cheeseburgers and Assume the price of each cheeseburger is $10 and the price of Good J is $5 4)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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