1. Consider a consumer who can buy either good 1 or good 2 (or some combination). She has a budget of $100. The price of good 1 is $10 a unit; p2 is $5 for each unit of good 2. The bundle (7,6) of good 1 and good 2, respectively, is a. inside the budget set b. just affordable (that is, sits on the budget constraint) c. outside the budget set d. both a and b. e. none of the above

Q: 3. A consumer is maximizing his satisfaction. Due to a change in tastes, his marginal utility…

A: The consumer consumes two goods and he is presently maximizing his satisfaction. The satisfaction…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: The utility maximizing level is given as MUx/Px= MUy/Py Good X   Good Y   Quantity MUx/Px…

Q: 2. Suppose a consumer has a fixed budget of $200, and she spends it all on two goods, x1 and x2. The…

A: The budget constraint refers to the all different combinations of consumption that a person can…

Q: 4. Indifference Curve and Budget Line (20%) Annie has an income of $160 an hour. Popcorn costs $5 a…

A: The indifference curves are the curves which shows the combinations of one or more goods which gives…

Q: 3. Susan has the following utility function U(x,y) = xy, where x represents food and y represents…

A: *SOLUTION :-  * (3)

Q: Help!

A: Now, we will examine each component more thoroughly:  (a) Budget Constraint: The budget constraint…

Q: PROBLEM (7) A consumer with I dollars budget has the utility u(x,y) = x(y+1) over amounts of cake…

A: A person's preferences and level of satisfaction from consuming various products and services are…

Q: Question 4 A consumer has income of $15,000. Pillows costs $35 per pillow, and soda costs $70 per…

A: Income = $15,000 Price of Mask = $35 Price of sanitizer = $70

Q: Price for good A is $6 and good b is $8.  Budget is $36.            Good A…

A: Consumer equilibrium will be achieved when the consumer will be able to exhaust all his budget.

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: A consumer has a budget of $72 to consume X and Y, and Px-$2 and Py-$2. Suppose the consumer's…

A: Given information U=X0.5Y0.5 Px=2 Py=2 M=72 Budget constraint M=Px*X+py*Y

Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…

A: An indifference curve is a graphic representation of a collection of products that give consumers…

Q: a. What combination of A and B will Mr. Chen purchase? A = units units B = b. Does your answer meet…

A: In case of two goods, let's say good A and good B. Consumer maximizes utility at the following…

Q: 2. Bobby, the brain, Heena His utility function is U = FC. The consumes fifty units of each. a. Draw…

A: Equilibrium refers to a state where the demand and supply in the market are equal. A consumer is in…

Q: What could have caused a change in the budget line from B4 to B1?     (a) an increase in the…

A: Correct AnswerThe shift from budget line B4 to B1 indicates a change in the consumer's budget…

Q: 3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A…

A: Given utility function is form of perfect substitute utility function, perfect substitute goods…

Q: A consumer is spending all of her income and receiving 100 utils from the last unit of good A and 80…

A: It can be defined as the concept that shows the additional satisfaction that a consumer can get by…

Q: Generally speaking, as more of a good is purchased by an individual consumer, marginal utility A.…

A: Marginal utility refers to the additional satisfaction or benefit that a consumer derives from…

Q: 3) i. The marginal utility for shoes and coffee is given below for five individuals. A pair of shoes…

A: a. Which of these consumers are optimising over their choices? ExplainTo determine whether a…

Q: When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: 3) For Nour doughnuts and muffins are perfect substitutes. Doughnuts are £4 a box and muffins are £3…

A: Dear student, You have asked multiple questions in a single post. I am answering question number 3…

Q: Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is…

A: Mr max purchasing 4 unit of good A and 6 unit of good B Price of A and B is $2

Q: Multiple Cholce prices of Cand D cannot be determined. price of C Is $5 and the price of D is $10…

A: Budget line: - it is the graphical representation of different combinations of two goods that a…

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: Quantity Marginal Utility $ marginal utility Quantity Marginal Utility $ marginal utility 1 8 8 1…

Q: 14. Assuming that the price of both goods is $10 per unit and that Consumer has $30 to spend, what…

A: Utility-Maximizing Combination:The utility-maximizing combination refers to the specific mix or…

Q: Sam has income of $2000 per month, and consumes two goods, housing and food. Apartments in her area…

A: A budget line, also known as a budget constraint, is a graphical representation of the limits or…

Q: Price for good A is $6 and good b is $8.  Budget is $36.            Good A…

A: Quantity Total Utility marginal utility  $MU Quantity Total Utility marginal utility  $MU 1 18 18…

Q: Please show your answer step by step with reasons. (i) A consumer has income of £3,000. Apple juice…

A: In economics, a spending plan limitation addresses every one of the mixes of labor and products that…

Q: rite the budget equation of the consumer and draw the line of this equation. ii. Using the budget…

A: Budget line represents different combinations of two goods that can be purchased with given level of…