MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
10th Edition
ISBN: 9781337739115
Author: Tucker
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 8SQ
To determine
The
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Q2) This table shows the quantities consumed of one commodity and the total utility gained from this commodity.
Marginal Utility
Total Utility
Quantity
9
1
18
2
25
3
30
4
34
5
36
6
36
7
34
8
The Required:
1. Extract the marginal utility
2. Draw the total and marginal utility curve in the graph and explain the importance of marginal utility.
How does the law of diminishing marginal utility relate to changing income?
Select one:
a. The marginal benefit of an extra dollar of income rises as income rises.
b. The marginal benefit of an extra dollar of income falls as income rises.
c. The total utility gained from a small income is higher than the total utility gained from a high income.
d. The total utility gained from a high income is higher than the total utility gained from a low income.
Calculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places)
The Price of wine is 3
The Price of Cheese is 0.14
The Consumer's budget for wine and Cheese is 9.69
(WINE)
(WINE)
(CHEESE)
(CHEESE)
(CHEESE)
GLASSES
(WINE)
WEDGES
OF WINE
MARGINAL
OF CHEESE
TOTAL UTILITY
MARGINAL UTILITY
MARGINAL
TOTAL UTILITY
MARGINAL UTILITY
UTILITY/dollar
UTILITY/dollar
1
70
10
Number
Number
Number
Number
35
160
6
Number
65
Number
225
3
41
Number
Number
Number
Number
4
45
4.
288
Number
61
Number
48
349
The Quantity of Wine this consumer would buy to maximize utility is : Number
Number
The Quantity of Cheese this consumer would buy to maximize utility is :
What is the consumer's Total Utility when optimized : Number
Chapter 6 Solutions
MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
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
- Total Utility 110 100 80 90 70 60 50 40 30 20 10 0 FIGURE 6-1 1 2 3 Unit of a Good . 4 P $ 5 6 Refer to Figure 6-1. The marginal utility of the second unit of the good consumed isarrow_forwardComplete the following table and answer the questions: Units consumed Total utility Marginal utility 0 0 1 10 10 2 --- 8 3 25 --- 4 30 --- 5 --- 3 6 34 --- (i) What is total utility of second unit? (ii) What is marginal utility of 3rd, 4th and 5th unit? (iii) Explain the relation between Total Utility and Marginal Utility? (iv) At which rate is total utility increasing; a constant rate, a decreasing rate or an increasing rate? How do you know? (v) “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not?arrow_forwardThe relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the following table. Income $ 5,000 6,000 A 70 64 Quantity Consumed B 35 42 C 10 16 D 20 12 Which product(s) listed is(are) an example of an normal good?arrow_forward
- b. The table below shows the total utility associated with the consumption of units of ice cream. Fill in the table by finding the marginal utility for each row: a=35 b- 17.5 <= 10.5 d-8.75 e= -7 Show hint Quantity Total Utility Merginal Utility 1 Does this problem demonierate diminishing marginal utility? A. No B. Yes 2 3 4 5 6 160 195 2125 223 231.75 238.75 4 b C darrow_forward. 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 Suppose that the consumer’s income increased from $9 to $12. What would be the utility-maximizing combination of goods X and Y?arrow_forward1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?arrow_forward
- 1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores? ****FIRST 3 SUB-PARTS ANSWERED ALREADY ONLY NEED LAST 3****arrow_forwardSECTION A-STRUCTURED QUESTIONS [TOTAL = 30 MARKS] Answer ALL questions. SHOW ALL YOUR WORKINGS. QUESTION 1 (10 MARKS) The table below shows the quantity of goods consumed and the total utility of two goods. Total Utility (TU) GOOD Y QUANTITY GOOD X GOOD Z 156 250 360 351 550 900 585 1000 1590 845 1475 2340 1170 2100 3240 Calculate the Marginal Utility (MU) for each good. (10 marks) QUESTION 2 (15 MARKS) The table below provide information about demand and supply of a new formulated herbal drink in the district of Bukit Tinggi. Markkat Market 12345arrow_forwardTABLE 6-3 Chocolate Bars Hot Chocolate Quantity Total Utility Quantity Total Utility 0. 0. 1 15 1 25 30 35 3. 40 3 43 4 48 4 46 55 48 Refer to Table 6-3. The table shows Moira's total utility from each chocolate bar and cup of hot chocolate that she consumes. Which cup of hot chocolate has the highest marginal utility? the first the second the fourth the fiftharrow_forward
- 7. Fill out the table below to give an example of each type of utility based on the scenario. Sunglasses in a kiosk in the mall in July; buy one, get one free Christmas wrapping paper in a clearance bin at a craft store in January Hearing aid batteries at the gift shop on a cruise Umbrellas at an outdoor sporting event Firewood bundles at the visitors center at the state park Form Time Possession Placearrow_forwardQUESTION 12 The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of Cookies Marginal Utility 1 2 3 4 5 6 20 16 12 8 4 0 George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how many bags of cookies will he consume per month if he maximizes utility?arrow_forward2. The following table reflects the utility one receives from consuming a given product. Units Consumed Total Utility (TU) Marginal Utility (MU) 0 150 0 1 2 3 4 5 6 370 450 150 120 50 520 a. Complete the table solving for the missing total utility or marginal utility values in each row. b. Total utility increases throughout the table. At what rate does total utility increase? In other words, is it rising at an increasing rate, a decreasing rate, or a constant rate? Explain.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
