Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 6, Problem 17SQ
To determine
The selection of a utility maximizing consumer.
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Students have asked these similar questions
A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y.a. The budget set is illustrated below. What are the values of A and B?
The horizontal axis is labeled Good X. The vertical axis is labeled Good Y. A line begins at a point on the vertical axis goes down to the right and ends at a point on the horizontal axis.
A =
B =
b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles?
multiple choice
Yes, it rotates clockwise
Yes, it shifts out from the origin
Yes, it shifts in toward the origin
No, it does not change
c. Given the equation for the budget set, what are the prices of the two goods?Good X: $ Good Y: $
What is the consumer’s income?
$
Hi!
Why is the answer B and not C? I thought that to be able to maximize utility we had to buy more of X and less of Y in order to increase marginal utility in Y and decrease marginal utility in X to reach an equal marginal utility for both. Thank you!
Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility ?
Please please answer that please early please
Chapter 6 Solutions
Micro Economics For Today
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
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Similar questions
- Would you expect total utility to rise or fall with additional consumption of a good? Why?arrow_forwardExplain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility? Please please answer that please early please total answer this question pleasearrow_forwardConsumer utility function is, Uxy = 10 x1/2 y1/2. The price of X good 10 AZN and Y good 20 AZN. If consumer income is 500 AZN, find and show graphic description how much consumer can buy X and Y good.arrow_forward
- Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility?arrow_forwarda. With the aid of appropriate diagrams, evaluate and illustrate the conditions required for utility maximization.arrow_forwardK A budget line is a line that describes limits to consumption possibilities and that depends on a consumer's OA. demand; prices B. demand; supply C. budget; costs D. budget; prices and of goods and services.arrow_forward
- . 1.given the following information Pieces of pizza total Utility marginal utility Qx TUx MUx 0 0 2 8 4 14 6 18 8 20 10 20 12 18 Required: A. Compute for MUx. Show your solution B. Based on the table , how many pieces of pizza the consumer will ,consume to maximize his satisfactionarrow_forward6. Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U= 2X2Y. What quantities of X and Y does he buy each week in equilibrium?.arrow_forward1. 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_forward
- State and explain the law of diminishing marginal utility .Why does the law operate ?arrow_forwardJamini has $800 of income to spend on goods X and Y. The prices of goods X and Y are $200 and $10, respectively. Her utility function is U(X,Y) = X0.5Y0.5. How many units of good X does she purchase? How many units of good Y does she purchase? ( typed answer please!! No handwritten)arrow_forward
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