What are the assumptions of the consumer equilibrium??

Q: Which of the following influences people's buying plans and varies moving along a demand curve?A)…

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

Q: What are the limitations of the law of Equi- marginal utility

A: According to the given question The law of equi marginal utility states that when the consumer…

Q: What is the difference between good x as a function of price and income and good x as a function of…

A: Factors affecting demand are demand determinants. Price (P) , income(Y) , utility (U), taste and…

Q: If Cheerios and Milk are complements, consumers consume either one of these goods or the other.…

A: In economics, complement goods are those which are used jointly and can not be used separately. For…

Q: What is the formula for marginal utility? How  does price affect marginal utility? What other…

A: Marginal utility refers to the extra advantage got from consuming another unit of a particular…

Q: What is law of diminishing marginal utility? Explain.

A: The law of of diminishing marginal utility States that it with an increase in the unit of commodity…

Q: Harry's income declines and as a result, he buys more pumpkin juice. Is pumpkin juice an inferior or…

A: A good is considered an inferior good if its demand is inversely related to the income of the…

Q: suppose the price of an item icreases by 10% that the quanity supplied of that same item  decreases…

A: Given information, Change in price: 10% Change in quantity supplied: 2% To find: relationship…

Q: What is the law of diminishing marginal utility why or how is this relevant for our discussion of…

A: Marginal utility is the addition to the total utility received from consuming an additional unit of…

Q: a) Graph her consumer choice model (with chicken onthe x axis. Nowlet price of chicl fall, causing…

A: Two goods are considered in the market chicken and rice with price of chicken and rice denoted as Pc…

Q: (a) If a consumer has to choose between McDonald burger and King Burger, both are perfect substitute…

A: Perfect Substitute A pair of identically used products is referred to as a perfect replacement. The…

Q: Study the type of goods given below and select the one that is not an exception to law of demand. a.…

A: Law of demand - other things being constant, there is inverse relationship between price and…

Q: What is your reflections about law of diminishing marginal utility, law of demand and law of supply?

A: The Law of diminishing marginal utility suggests that the consumer's additional utility derived from…

Q: When there is a change in price, there is an income effect and a substitution effect. Which is…

A: The income effect is that the change within the consumption of products by consumers supported their…

Q: how do I illustrate an increase in a price of an item resulting in consumers buying another item

A: Law of demand says the more of goods is purchased at low price and vice versa keeping other factors…

Q: A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. a.…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

Q: What happens to the price of peaches if consumer income declines?

A: The normal good refers to the good whose demand is positively connected to the level of income.…

Q: Please explain or derive mathematically the condition for consumer equilibrium.

A: The consumer's equilibrium refers to a condition in which the consumer has gotten the most potential…

Q: Problem 6 Consider the following diagram that shows the effects of a decrease in the price of beer…

A: Since you have asked a multi-part question and according to the policy we can only solve the first 3…

Q: what is the principle of utility

A: Utility refers to the satisfaction received by a consumer from consuming a particular commodity.

Q: What other factors affect the marginal utility?

A: ANSWER STEP-1 The factors affect the marginal utility Variables like tax likewise influence the…

Q: Explain, Why is the marginal utility curve declining with incresed consumpition of burgers?

A: ANS Marginal Utility (MU) is the change in the total utility when an additional unit of the…

Q: Using the consumer choice theory, explain how an individual decides how to adjust her preferred…

A: Consumer choice theory: It refers to the idea in which the consumers will try to purchase to…

Q: Given the market price of a good, how does a consumer decide as to how many units of that good to…

A: First we need to understand what is marginal utility. Marginal Utility - It is the additional…

Q: Define the term substitute goods.    Please explain in details.

A: In economics, goods are things that fulfill human needs and offer utility, such as a customer buying…

Q: explain how utility analysis leads to the law of demand.

A: Demand is a economic rule alluding to a buyer's wants for a specific item or administration. Utility…

Q: Explain law of diminishing marginal utility ??

A: Marginal utility is the utility that is derived from the consumption of an additional unit of…

Q: What happens to consumption of a normal good when its price increases?

A: Normal goods are those whose demand increments as individuals' purchasing power and incomes rises.…

Q: What is equilibrium of consumer? And how it is determined

A: Consumer theory studies the behaviors of consumers, how consumer spends their limited income given…

Q: State and explain the law of diminishing marginal utility .Why does the law operate ?

A: The utility is the want satisfying power of the commodity. The preference of the consumer depends on…

Q: A consumer has income of $15,000. Masks costs $35 per mask, and sanitizers costs $70 per bottle.…

A: 1. According to the law of demand, the demand for good decreases when the price of that good rise.…

Q: Who determines how much utility an individual will receive from consuming a good?

A: The demand refers to the total amount of a good which an individual is willing, and able to buy at…

Q: How can else  increase marginal utility and therefore the consumer demand curve?

A: marginal utility is the additional fulfillment a purchaser gets from having another unit of a decent…

Q: Can an increase in the price of cheese possibly inducea consumer to buy more cheese? Explain.

A: Generally for normal good, the price of the good is inversely related with the consumption units of…

Q: If the price of Apple increases and the price of Oranges decreases, how will it affects the budget…

A: The consumer equilibrium is that condition in which the consumer benefits the maximum from his/her…

Q: If milk and Cheerios are such known to be complements the consumer consumes either one of this goods…

A: What we can say to the complementary goods describes that the amount of the goods whose certain…

Q: For most goods if a consumer's income increases his demand for the goods will do what?

A: Consumers use their income to purchase goods and services. In consumer demand theory, the level of…

Q: What is the budget constraint?

A: Microeconomics discusses the economic behavior of the individual units such as a consumer, a…

Q: explain the Constructing Utility from Demand in microeconomics

A: The following concepts in relation to Microeconomics is explained as follows: