Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 22SQ
To determine
The cause of the downward sloping demand curve.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
. Price for good A is $6 and good b is $8. Budget is $36.
Good A Good B
Quantity
Total Utility
Quantity
Total Utility
1
18
1
32
2
30
2
56
3
38
3
72
4
42
4
80
5
44
5
84
6
3
6
2
7
2
7
1
What is the level of total utility for the consumer in equilibrium?
Price 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
When the consumer purchases the utility-maximizing combination of goods X and Y, total utility will be what?
explain the consumer equilibrium condition according to the utility theory.
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
Knowledge Booster
Similar questions
- What's the meaning of a combination of goods which are lying outside the budget line? A. the given combination of goods can provide higher utility compared to the combination of goods below the budget line B. the given combination of goods is affordable C. the given combination of goods is not affordable D. A and B are correct E. A and C are correctarrow_forwardexplain how utility analysis leads to the law of demand.arrow_forwardA consumer is spending all of her income and receiving 100 utils from the last unit of good A and 80 utils from the last unit of good B. If the price of good A is $2 and the price of good B is $1, to maximize total utility the consumer should buy: Select one: a. Less of both goods. b. More of good B. c. More of good A. d. Less of good B. e. More of both goods.arrow_forward
- Discuss it in your own understanding and then give example of the following: Utility and Demandarrow_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_forwardPROBLEM (5) A consumer with I dollars budget has the utility u(x,y) = x(y+1) over amounts of cake (x) and ice cream (y) she consumes. The prices are px , py respectively. (a) Derive her demand for cake (x), as a function of prices px , py and her budget I.(b) Looking at the demand function in (a), is cake a normal good or an inferior good? Are cake and ice cream complements or substitutes?(c) Calculate the (i) (own) price, (ii) income, (iii) cross- price elasticity of demand for cake at the point whereI = 80, px =10, py = 20..arrow_forward
- 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? $arrow_forwardThe law of diminishing marginal utility allows us to conclude that A) demand curves slope downward to the right. B) total utility will increase by an increasing amount as consumption increases. C) supply curves slope upward. D) a consumer will buy positive amounts of all goods.arrow_forwardWould this person be maximizing utility?: Bobby eats 2 sandwiches and drinks 3 sodas. The last sandwich gives Bobby 25 units of utility and the last soda gives him 5 units of utility. Sandwiches are $5 each and sodas are $1 each. What should Bobby do to maximize utility if it is not already maximized?arrow_forward
- A fall in the price of a good will rotate the budget constraint _________and make it possible for a consumer to reach higher indifference curves. As a result, the consumer will_________ the quantity of the good demanded. A. inward; increase B. outward; decrease C. inward; decrease D. outward; increase.arrow_forwardUse a well labelled diagram and illustrate the consumer equilibrium by drawing a budget constraint and an indifference curve . There will be amount of good X on the x-axis and amount of good Y on the y-axis. Then decrease the price of good X and illustrate the effect of a decrease in the price of good X by dividing the total effect into substitution effect and income effect considering that good X is an inferior good . Explain the meaning of the income and substitution effects of a price change.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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
