EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 7, Problem 6P
To determine
The best allocation of $10 between A and B.
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Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities
MUS
56
48
32
24
20
16
Units of J
1
2
3
4
5
6
7
Multiple Choice
O
O
What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $36 and the prices of J and K are $4 and $4, respectively?
O
12
238 utis
40 utils
204
Units of K
1
2
3
4
5
6
7
MUK
32
28
24
20
12
10.
8
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he would spend a dollar buying a first cup of coffee? LO7.2
4. Columns 1 through 4 in the following table show the marginal
utility, measured in utils, that Ricardo would get by purchasing
various amounts of products A, B, C, and D. Column 5 shows
the marginal utility Ricardo gets from saving. Assume that the
prices of A, B, C, and D are, respectively, $18, $6, $4, and $24
and that Ricardo has an income of $106. LO7.2
a. What quantities of A, B, C, and D will Ricardo purchase in
maximizing his utility?
b. How many dollars will Ricardo choose to save?
c. Check your answers by substituting them into the algebraic
statement of the utility-maximizing rule.
nuts, coffee, or both. How big would that buuget nave LU DC DCIUIU
Question 21
Units of Product Marginal Utility, A (Price = $1) Marginal Utility, B (Price = $1)
First
Second
Third
Fourth
Fifth
Sixth
Seventh
16 utils.
O 54 utils.
Ⓒ70 utils.
12
Ⓒ20 utils.
10
8
6
4
2
0
16
14
12
10
8
4
Refer to the data for a consumer whose income = $4. In equilibrium, the introduction of new product C has increased this
consumer's total utility by
Marginal Utility, New Product, C (Price =
$1)
20
18
16
14
12
10
8
Chapter 7 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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