If the consumer income is OR 568, price of good (X) is OR 81.3 and the price of good (Y) is OR 33.7, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). Select one: a. 6.99 b. 0.14 c. 0.06 d. 16.85
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- If the consumer income is OR 656, price of good (X) is OR 56.6 and the price of good (Y) is OR 40, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). a. 11.59 b. 0.06 c. 0.09 d. 16.40Exercise 2: 1. The table below shows the marginal utility of good A, good B and good C for Betty. Marginal Utility for good A (MU.) Marginal Utility for good B (MU.) Marginal Utility for good C (MU.) Unit of goods 1 18 39 12 2. 16 36 10 14 33 4 12 30 10 27 6 24 Suppose Betty has RM26 to spend on these three goods. The prices of good A, good B and good C are RM2, RM3 and RMI, respectively. What combination of three goods should be purchased in order to maximise utility? a. b. Based on the answer 1(a), what is the total utility derived by Betty? C. Distinguish between "total utility' and 'marginal utility. d. Briefly explain the TWO (2) conditions that must be fulfilled for a consumer to maximise utility. e. Define the Law of Diminishing Marginal Utility1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $378. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $1512 and $756 is shown in the following table. Good A Good B Quantity MU MU/$1512 MU/$756 MU MU/$378 1 24 2 15 3 12 4 8 5 6 6 4 48 32 24 16 8 4 ||||| ||||| |||
- Basil is a broke college student who consumes only coffee and pizza. No one is really sure how he can survive on those two goods alone, but somehow he does. Coffee is $2 per cup, and pizza is $5 per pizza. Basil's weekly budget constraint is shown below. On the graph below show how his budget constraint would change if Basil gets an additional $10 per week from his grandmother. Coffee (cups per week) 15 14 13 3 210 000 654 120 w 2 -N Budget Constraint 0 01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pizza (number per week)A consumer is choosing between magazines and books. His set of consumer optimums are shown on the graph to the right. 50 Consumer income allocated for these two goods is equal to $150. The price of 45 magazines (P,) is equal to $5.00. 40- How do these changes in the price of books affect the demand for magazines? 35- 30- 25 NN 20- demand remains constant 15- PCC demand increases 10- 5- demand decreases 0- Ó 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Books étv 21 MacBook Air 80 DII F5 F6 F7 F8 F9 F10 F1 F2 F3 ! @ $ & * 1 2 3 4 6. 7 Q W E T U A S F H. J K L C V M option command command op ...- * C0 Magazines DThe table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. Quantity TUx MUx MUx/Px TUy MUy MUy/Py 0 0 0 0 0 0 0 1 50 50 16.67 75 75 25.00 2 88 38 12.67 117 42 14.00 3 121 33 11.00 153 36 12.00 4 150 29 9.67 181 28 9.33 5 175 25 8.33 206 25 8.33 6 196 21 7.00 225 19 6.33 7 214 18 6.00 243 18 6.00 8 229 15 5.00 260 17 5.67 9 241 12 4.00 276 16 5.33 d.How much total utility will James experience by buying the utility-maximizing combination? e.Suppose the price of good Y increases to $6. How many units of X and Y will he buy to maximize his utility now?
- Digital Apps per Period 0 1 2 3 4 5 Total Utility of Digital Apps per Period (utils) which 0 50.0 95.0 135.0 171.5 200.0 Marginal Utility (utils) 50.0 45.0 40.0 36.5 28.5 Marginal Utility Portable per Dollars Spent Power Banks (price = $5.97) per Period | 8.4 7.5 6.7 6.1 4.8 0 1 GTA W N 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Utility (utils) 25 22 18 15 9 Marginal Utility per Dollars Spent (price = $2.70) 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is $ and spending on portable power banks is $. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is $ the…1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this product is $26. Calculate the price change of Product A if there is a 1.3 times increase in the quantity available to purchase. Enter your answer in the box below, use a minus sign to show a decrease in price, and round to the nearest whole number if necessary. 2. Consider the spending choices of the following consumer: Emily's income is spent on colas and orange sodas, as well as other goods. She considers colas to be a normal good and orange sodas to be a normal good. What will happen to Emily's purchases of these goods if her income decreases? Select the best answer. She will buy more colas and fewer orange sodas.She will buy fewer colas and fewer orange sodas.She will buy more colas and more orange sodas.She will buy fewer colas and more orange sodas. Is the following statement true or false? Select the best answer. The price ratio of coffee to cookies is 1.5, so the marginal utility…Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the worksheet) and wants to use these data to decide how to rationally spend the money she has. The price of pizza is $2.00 and the price of soda is $2.00 question 9 (a) given these prices and your worksheet calculations, what is the first product lee will buy? (b) would lee ever buy four slides of pizza? Why/why not? question 10Given the data in your worksheet, how many pizza slices and sodas lee should buy to maximize her total utility if she rationally spends her budget of 10.00? question 11 when the price of pizza changes, lee's MU/$P changes. If the price of pizza decreases to $1.50 and her budget decreases to $7.50, how many pzza slices and sodas lee should buy to maximize her total utility?
- 31) Suppose Joe's utility for lobster (L) and soda (S) can be represented as U = L0.5 S0.5. Joe walks into a restaurant with $72. Lobsters cost $18 each and sodas cost $2 each. How much lobster and soda will Joe consume if he intends to spend all his money? (There are no tax and no tips.) 1). dU/dL = 0.5 L-0.5 S0.5 - 18q = 0 2). dU/dL = 0.5 L0.5 S-0.5 - 2q = 0 3). dU/dq = 72 - 18L - 2S = 0 32) Joe's indifference map for lobster and soda is shown in the above figure along with his budget line. Will Joe choose point a? Explain your answer in terms both of MRS and the level of utility. 33) John is indifferent between canned soup and fresh soup. Canned soup sells for $1 per serving and fresh soup sells for $2 per serving. Assuming that John has allocated $4 toward soup, how will he spend it? Explain your answer by drawing John's budget line and indifference curves.Given the data in the below table, income of $13, a price of $1 for a gallon of gasoline and $2.00 for a pizza. (MU is marginal utility) Quantity of Gasoline MU of Gasoline MU of Gasoline per dollar Quantity of Pizza MU of Pizza MU of Pizza per dollar 1 35 35 1 30 15 2 25 25 2 18 - 3 16 16 3 17 - 4 10 10 4 10 - 5 5 5 5 8 - 6 4 4 6 7 - Complete the table choose the quantity of gasoline and the quantity of pizza that will maximize the consumer's total utility. what is the marginal utility per dollar spent on the fifth hamburger? Quantity of gasoline Marginal utility from gasoline Quantity of hamburgers Marginal utility from hamburgers 1 35 1 20 2 25 2 18 3 16 3 17 4 10 4 10 5 5 5 8 6 4 6 7 Given the data in the above table, income of $13, a price of $1 for a gallon of gasoline and $2.00 for a…On the diagram to the right is plotted a single bundle of 2 books and 3 DVDS consumed per month. This bundle is a point on the consumer's budget constraint. 10- 9- If the price of one book is $135.00 and one DVD is $90.00, then the consumer's level of monthly income is $ (round your answer to the neareast dollar). 8- 7- 2- 0- 9 10 Books (per month) 15 tv MacBook Air esc 80 DIL F1 F2 F4 F5 F6 F7 FB ! @ $ & * 1 2 3 4 7 8. 9 Q W E T Y tab ps lock A S F H J X C V M control option command DVDS (per month) N * *