EBK MICROECONOMICS
12th Edition
ISBN: 8220100659454
Author: PARKIN
Publisher: PEARSON
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Chapter 8, Problem 25APA
a)
To determine
Consumption possibilities.
b)
To determine
Consumption possibilities.
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Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he should buy with his $20 budget. The price of peanuts is $5 per bag and the price of popcorn is $4 per bag. If Timothy’s marginal utility from consuming his last bag of peanuts is 20 utils and his marginal utility from consuming his last bag of popcorn is 12 utils, Timothy should?
A. consume more bags of popcorn and less of peanuts.
B. consume more bags of peanuts and less of popcorn.
C. not change his consumption. He has already achieved the consumer optimum.
D. consume fewer bags of peanuts and popcorn.
E. consume more bags of popcorn and peanuts.
Please type out the correct answer ASAP within 40 50 minutes, with proper explanation of the each option given. Will give upvote only for the correct answer.thank you.
The table shows Rita's total utility from burritos and hot dogs.
When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog falls from $4 to $2,
how many burritos and hot dogs does Rita buy?
What are two points on Rita's demand curve for burritos?
When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog is $4, Rita buys
burritos and hot dogs.
Everything else remaining the same, if the price of a burrito falls from $4 to $2, how many burritos and
hot dogs does Rita buy?
burritos and hot dogs.
Rita buys
So two points on Rita's demand curve for burritos are
$2.00 each.
burritos at $4.00 each and burritos at
(...)
Hafidh's income is $200 a month. The price of watch is $25 a show, and the price of a Jeans is
$15.
a) Calculate the equation for Hafidh's budget line
b) Draw a graph of Hafidh's budget line with the quantity of Watches on the x-axis.
c) If Hafidh's income increased from S200 to 350S. Explain and show how Hafidh's
budget line changes with watches on the x-axis.
Chapter 8 Solutions
EBK MICROECONOMICS
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQ
Ch. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.4 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10SPACh. 8 - Prob. 11SPACh. 8 - Prob. 12SPACh. 8 - Prob. 13SPACh. 8 - Prob. 14SPACh. 8 - Prob. 15SPACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APACh. 8 - Prob. 28APACh. 8 - Prob. 29APACh. 8 - Prob. 30APACh. 8 - Prob. 31APACh. 8 - Prob. 32APA
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- Q. Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. a. Is Bridget making the utility-maximizing choice? Why or Why not? b. If not, what should she do instead? Why? Please provide the correct answer. Thank you!arrow_forwardThe graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine? 24 20 16 4 2 4 6 8 10 12 Magazines (number per week) dollar(s) Cookies (number per week)arrow_forwardQuestion 5 Andrew is currently spending all his income on 2 goods, burgers and Pepsi. He buys burgers at 4 L.E. a unit, with a total utility of 1000 and a marginal utility of 24. He buys Pepsi at 1 L.E a unit with a total utility of 800 and a marginal utility of 18. In order of reach consumer equilibrium, he should consume: The same amount of burgers and Pepsi. More Pepsi but the same amount of burgers. More Pepsi and less burgers. More burgers but the same amount of Pepsi. More burgers and less Pepsi.arrow_forward
- How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?arrow_forwardQ43 Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie... a. Should buy more cheese and less bread to maximise her utility. b. Should buy more bread and more cheese in order to maximise her utility. c. Spends too much money on bread and cheese. d. Should buy more bread and less cheese in order to maximise her utility. e. Is buying currently the utility-maximising amount of bread and cheese.arrow_forwardThe diagram shows Sam's budget line. Sam's budget line shows 40 16 4 8. 12 16 20 24 Coffee (pounds per week) O A. which combinations of gasoline and coffee Sam can afford. B. which combinations of gasoline and coffee Sam is planning to purchase. OC. whether or not Sam thinks gasoline and coffee are worth their prices. OD. whether or not Sam currently has enough gasoline and enough coffee. 32 24 Gasoline (gallons per week)arrow_forward
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