EBK ECONOMICS FOR TODAY
9th Edition
ISBN: 8220101414250
Author: Tucker
Publisher: Cengage Learning US
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Question
Chapter 6, Problem 5SQ
To determine
Meaning of equilibrium consumption of two goods.
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Students have asked these similar questions
In a competitive market, what should consumer do if the marginal utilities/prices ratios are NOT same for all goods? Please explain by referring to MRS.
If a good is free, when will a consumer stop wanting to buy the good?
Once the total utility equals zero
At the quantity where marginal utility is at its maximum
Once the marginal utility equals zero
When marginal utility is negative
Once the marginal utility equals total utility
What is used to measure a consumer's entire satisfaction or happiness of a
choice?
Total utility
Marginal cost
Marginal utility
Total Revenue
Total costs
Which of the following best defines the term utility as it is used by economists?
when a market allocates resources in a way that maximizes consumer and producer
surplus
What is the definition of marginal utility?
A.
The average utility from consuming a good or service multiplied by the number of units of that good or service consumed.
B.
Utility measured in utils.
C.
The utility from consuming a good or service divided by the number of units of that good or service consumed.
D.
The change in utility from consuming an additional unit of a good or service.
E.
The enjoyment or satisfaction people receive from consuming goods and services.
Chapter 6 Solutions
EBK 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. 20SQ
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Similar questions
- The total area under the demand curve of a good, measures- (A) Marginal utility (B) Total utility (C) Consumer's surplus (D) Producer's surplusarrow_forwardUsing Budget Constraints and Utility Curves derive Marshal's the demand curve of Good X when the price of X falls while X is an inferior good. Explain the process in details.arrow_forward(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%arrow_forward
- Let us consider the case of Saiful who derives positive marginal utility from consuming apples. In the initial situation, Saiful consumed 3 apples per week. Now Saiful decides to consume 2 apples per week. What will be the effect of Saiful's decision of consuming 2 apples per week on his total utility and marginal utility? A. Total utility will increase and marginal utility will increase compared to the initial situation B. Total utility will decrease and marginal utility will increase compared to the initial situation C. Total utility will increase and marginal utility will decrease compared to the initial situation D. Total utility will decrease and marginal utility will decrease compared to the initial situationarrow_forwardMICROECONOMICS The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(1,2)y^(6). We know that good x costs 20, and good y costs 90 units of money. The consumer's entire budget is 7440 units of money. How much is her optimal consumption of the good x?arrow_forwardWhat is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of strawberries and apples satisfies the following rule? How do you know?arrow_forward
- #6. Wayne prefers Starbucks over Pete's Coffee. But when Starbucks raises their prices, he gets upset and goes to Pete's Coffee instead. Is this irrational? a. No. Wayne is following the law of demand b. Yes. If he were rational, he would not let his emotions influence his decisions. c. Yes. If he were rational, he would pick his favorite coffee even if prices went up d. Both b and carrow_forward14.At the point of tangency, what is true about the ratio of the goods' marginal utilities and the ratio of their prices?arrow_forwardGive typing answer with explanation and conclusion Suppose the cost of petrol is Rs. 100 per litre. There are two consumers who wish to purchase petrol for their cars: A and B. Consumer A goes to the petrol pump and asks for 10 litres of petrol. Consumer B goes to the petrol pump and asks for petrol worth Rs. 1000. (i) Find the equilibrium quantity demanded by each consumer. (ii) Draw the demand curves for each consumer. Are the two consumers identical? What is the price elasticity of demand for each consumer?arrow_forward
- 25. What does a negative marginal utility means? Why does it happen? Explain.arrow_forwardAccording to the law of diminishing marginal utility, marginal utility of a good declines as more of it is consumed in a given time period. According to this law, which of the following statement is true? a. The more I go to school, the more I want to do something else b. Since we need gasoline more than we need paper, gasoline is more valuable c. Peas give me no satisfaction, so I won't buy any d. The more coffee I drink, the more I want to drinkarrow_forwardECONOMICS LECTURE NOTE 5.1.3 Example Use the table below to answer the questions that follows Commodity x Quantity Commodity y Quantity Marginal utility 60 Average utility 1 30 2 50 2 27 3 35 3. 22 4 15 4. 18 5 5 15 6. 6. 12 iii. Which of the commodities would he pay higher price when 4 units are consumed? Suppose the price of X is 5 and that of Y is 4. How many of the quantity of X and Y should be consumed in order for the consumer to be in iv. equilibrium. If price of X increase to 10 whiles that of Y remains the same, explain how the equilibrium conditions will behave.arrow_forward
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