# Budget Allocation for Digital Music and DiningYou have a budget of $125 per month that you can spend on digital music or dining. Each dinner costs $25, and each digital album costs $10. Use the chart below to answer the following questions.| Albums | | Dinners | ||---------------------|------------------|------------------------|------------------|| No. Per Week | Total Utility | No. Per Week | Total Utility || 1 | 250 | 1 | 300 || 2 | 450 | 2 | 550 || 3 | 630 | 3 | 750 || 4 | 790 | 4 | 900 || 5 | 870 | 5 | 1025 |### Questions:1. **What is the utility maximizing bundle?**2. **Explain how the total utility will be affected if prices and income double.**---This table provides a detailed comparison between different quantities of albums and dinners purchased per week, along with their associated total utilities. To determine the utility-maximizing bundle, you will need to consider how to allocate the budget to maximize total utility. Also, consider how changes in prices and income might shift these calculations.

The utility of the digital album and dinner is given below:AlbumsDinnerNo per weekTUNo per…

Answered: 1. You have a budget of $125 per month…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please help me solve for parts a, b, c, and d
Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $2.00 and the price of a banana is $1.00. If the consumer spent all of her budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy? Multiple Choice 4 apples or 8 bananas о 12 apples or 6 bananas О 6 apples or 12 bananas 5 apples or 10 bananas
30
3. Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup, no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee? *use tables and/or graphs if possible, please original work
When deciding which goods to consume, you should choose to consume the good with the highest marginal utility per dollar. O False, you should choose a combination of goods with equal marginal utility per dollar. O True, consumers are maximizing marginal utility and should always choose the highest amount per dollar. O False, you should buy the cheapest good to get a higher level of total utility. True, with diminishing marginal returns consuming more goods will reduce the marginal utility per dollar.
0 2 O 4 6 08 D Scones 10 1 2 3 4 5 Total Utility 10 18 24 Refer to Table 6.3, which shows the total utility and marginal utility derived from the consumption of scones. The first column of the table represents the number of scones a consumer consumes in a day. The second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. The total utility derived from the consumption of one scone is units. 28 30 Marginal Utility 6 2
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Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is $10 and the price of each dinner is $20. Movies Marginal Utility Per Month Per Movie 1 2 3 4 Multiple Choice O 4; 6; 2 O 3:2; 6 If Taylor eats out 3 times a month, Taylor will watch O 4; 6; 1/2 60 50 20 O 3; 4; 4 5 Dinners Out Marginal Utility Per Month Per Dinner 1 2 3 4 150 140 120 100 movies, and have marginal utility per dollar of from eating out and a marginal utility per dollar of from going to the movies.
The table below represents Sue's preferences for bottled water and soft drinks, the combination of which yields the same level of utility. Combination of Bottled Water and Soft Drinks ABCDE Bottled Water per month 5 10 15 20 25 Sue's monthly budget for bottled water and soft drinks the price of soft drinks is $2.00 per bottle. Soft Drinks per month 11 7 4 2 1 Marginal Rate of Substitution of Soft Drinks for Bottled Water 0.80 0.60 0.40 0.20 $20.00. The price of bottled water is $0.80 per bottle, and If water is on the horizontal axis and soft drinks are on the vertical axis, the slope of Sue's budget constraint is minus sign if necessary.) (Enter your response rounded to two decimal places and include Given the information on Sue's budget constraint and her preferences, the combination of goods that satisfies her utility-maximizing problem is
6. The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same two prices of good X (the right panel). The price of good Y is $4.50. When the price of X increases from point S to point R along the demand curve, the substitution effect of the price increase is and the income effect is Quantity of Y 60 48 B A 18 24 - Quantity of X Price of X 6 R S 24 Demand for X Quantity demanded of X Qa
S Ticket system My Dispense Academic Calendar My courses (7) · The table below shows total utility for two products. So, given this data, complete the table below: (CLO#3) No. of Product A Total Utility for A Marginal Utility of No. of Product B Total Utility for B Marginal Utility of A 210 270 390 2 510 540 3 690 4 660 4 780 750 810 Paragraph BI:= = A. N34 5
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