Foundations of Economics - With MyEconLab
8th Edition
ISBN: 9780134641720
Author: BADE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 7MCQ
To determine
Choose the correct answer from the following options regarding the paradox of value arises when people ___.
- Prefer to buy cheap goods rather than expensive goods
- Spend more on expensive useless goods than on cheap useful goods
- Buy so much of a useful good that its
price falls - Get the same
marginal utility per dollar from cheap useful goods and useless expensive goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Sumaiya, who consumes pepsi and pizza, gets a raise in her income from $300 to$400. Pepsi costs her $2 per glass and pizza costs $10.a. Show what happens to her optimal consumption point if both Pepsi and pizzaare normal good?b. Show what happens if pizza is an inferior good.
(9)
What determines the utility an individual receives from consuming a good?
Select one:
a. The individual’s own preferences.
b. The demand and supply curves for that good.
c. The producers conducting customer feedback surveys of that good and the feedback provided.
(10)
Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price?
Select one:
a. 23%
b. 30%
c. 21%
Give examples of goods with high utility and high prices, andgoods with low utility and low prices.
Chapter 13 Solutions
Foundations of Economics - With MyEconLab
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Please no written by hand and no image Assume that a consumer purchases a combination of products Y and Z and that the MUy ÷ Py = 30 ÷ 2 and MUz ÷ Pz = 45 ÷ 3. To maximize utility, without spending more money, the consumer should Answer choices: purchase less of Y and more of Z. purchase more of Y and less of Z. purchase more of both Y and Z. make no change in the quantities Y and Z.arrow_forwardPrice for X is $1 and Y is $2. Budget is $9. Good X Good Y Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1 To maximize utility, the consumer will buy how much of good X and how much of good Y?arrow_forwardTrue/False 1. it is necessary assumption and economics that consumers prefer higher quantities a good to lower quantities of that good for all goodsarrow_forward
- Suppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment (E) and other (O). Furthermore, suppose the price per unit of entertainment is $40 and the price per unit of other is $25. Can Olivia afford the following bundle: 10 units of entertainment and 15 units of other? Question 42 options: a Yes b Noarrow_forward7 The demand and supply functions of Good X are: QD = 110 – 2PX – 4PY + M QS = 200 + 4PX – 2W Currently, Py = 25, M = 330 and W = 140 If consumers incomes decrease by 8 percent, by what percentage will the demand for good x change?arrow_forwardSuppose Olivia has an income of $800/week for which she can use to consume two goods: entertainment (E) and other (O). Furthermore, suppose the price per unit of entertainment is $40 and the price per unit of other is $25. If Olivia buys 5 units of entertainment, what is the maximum amount of other she could buy? Question 43 options: a 16 units of other b 20 units of other c 28 units of other d None of the abovearrow_forward
- 1. If the consumer can only buy product x, how much will the consumer buy and what will be the total utility? 2.If the consumer buys both product x and product y, how much will the consumer buy of each to maximize utility? 3.When the consumer purchases the utility-maximizing combination of product x and product y, what is the total utility?arrow_forward1. Suppose that a consumer’s utility function for two goods (X and Y) is U(X,Y) = 10X^0.5 + 2Y , with MUx = 5X-0.5 and MUy = 2. The price of good X is $5 per unit, the price of good Y is $10 per unit, and the income is $275. a. Find the utility maximizing quantities of X and Y. b. If instead, the price of good Y is $20 per unit, how does your answer change?arrow_forward1.(a) Suppose a consumer derives satisfaction from consuming hamburgers and hot dogs.How will the budget line change when the consumer is offered a "buy two, get one free" deal for hotdogs (limit one free hot dog). Please show the changed budget line on the graph given below. (b) Please explain how “Buy one get one free” is different from a half price (50% off) sale. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Jeremy has a monthly income of $60. He spends his money making telephone calls (good ?, measured in minutes) at a price of ?? and on other composite good ?, whose price has been normalized to one, meaning ?? = $1. His mobile phone company offers him two plans: plan A, in which he pays no monthly fee and makes calls for $0.50 per minute, or plan B, in which he pays a $20 monthly fee and benefits from cheaper phone calls at $0.20 per minute.(a) Depict Jeremy’s budget constraint under each of the two plans, with the number of phone calls (good ?) in the horizontal axis and the composite good (good ?) in the vertical axis. (b) If Jeremy mentioned that plan A is better for him, what is the set of consumption bundles he may purchase if his behavior is consistent with WARP?arrow_forwardWould you expect total utility to rise or fall with additional consumption of a good? Why?arrow_forward3. A consumer is maximizing his satisfaction. Due to a change in tastes, his marginal utility increases for one of the products he is consuming. As he acts, what will happen to the marginal utilities of other goods that he is consuming? Those goods’ marginal utilities will: a. increase and then eventually decrease b. decrease and then eventually increasec. increase.d. decrease.e. not change.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStaxEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning