12. Suppose a cup of coffee at the campus coffee shop is $2.00 and a cup of hot tea is $2.50. Suppose a student's beverage budget is $20 per week. What is the most cups of tea the student could buy? a. 8 b. 10 c. 16 d. 20
Q: Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56…
A: The budget line is a collection of points that represents the affordability of items as defined by…
Q: Faa spends her entire budget and consumes 5 units of x and 6 units of y. The price of x is twice the…
A: Faa consumes:- 5 units of x 6 units of y To calculate:- Largest number of units of x. Please find…
Q: 4 The graph shows the total utility (TU) obtained by a consumer from eating biscuits over a period…
A: Utility: - Utility is the satisfaction derived by any consumer by consuming a good or service.
Q: UNITS MU OF SUGAR MU OF MILK 100 60 80 50 3. 60 40 4 40 30 20 20 10 INCOME=Rs 100 Price of sugar-Rs…
A: Utils is the measurement unit to measure the satisfaction a consumer gets by consuming goods, so…
Q: Mary buys cell-phone services from a company that charges a minimum of $25 per month. For that $25,…
A: Fixed Cost For first 100 minutes=$25 It is the fixed cost that Mary has to incur irrespective of the…
Q: Price of candy New price of Price of ice cream cones = 5.00 2.50 candy = $ 1.25 Quantity of Ice…
A: When price of ice cream cone is $5.00 Price of candy is $2.5 Then the optimum consumption will occur…
Q: Table 1 Number of Chocolate Bars per Day Total Utility Marginal Utility 80 2 3. 4 150 200 230 10 2-…
A: Number of chocolates Total utility Marginal utility 1 80 2 150 3 200 4 230 5…
Q: Drea budgets $50 for entertainment, which for her includes going to the movies or to basketball…
A: Given Drea Budget = 50 $ Price of movie ticket = 8 $ Price of basketball games = 15 $ Given…
Q: Q15. Most decisions involve which involves comparing the benefits and costs of choosing a little…
A: Utility is the satisfaction achieved by consuming one more unit, Whereas, the budgetconstraints…
Q: Suppose one have a budget of $1000. The price of one unit of X is $20 and the price of one Unit of Y…
A: Thus, the consumer can purchase 50 units of X, or 100 units of Y, or some allocation in between.…
Q: b. A student has a monthly budget of $120 to spend on either beer, which cost $6 each, or sodas,…
A: Hi! thank you for the question but as per the guidelines, we can answer up to 3 sub-parts at one…
Q: Some restaurants offer "all you can eat" meals. How is this practice related of diminishing marginal…
A: The utility is the level of satisfaction that the individual receives from the consumption of a good…
Q: The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda…
A: Given: The price of mini pizza is = $1 The price of soda is = $0.50 The total amount to spend is =…
Q: 1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get…
A: Answer -
Q: The marginal benefit Claire gets from purchasing a third pair of flip-flops is a) the same…
A: Marginal benefit is the extra benefit received from selling an extra unit of a good.
Q: The following is Ray Windmill White’s total utility schedule for pairs of boxing gloves. Calculate…
A: Utility refers to the inherent value or satisfaction received by the customer after consuming the…
Q: Lydia is a consumer who has a $10 budget for fruit. She buys peaches and oranges. The nominal price…
A: There are two goods, i.e., peaches and oranges. Let's denote Peaches by P and Oranges by O Budget…
Q: Figure 10 30 Hotdogs (number per week) d. If Ronald's income changed from Php 150 to Php 180 a week,…
A: The budget line is a curve showing various combination of two goods with given different prices and…
Q: Activity 1: My Utility! Directions: Explain and graph the utility schedule below. Use the space…
A: In economics, utility refers to the satisfaction that an individual receives from the consumption of…
Q: 4 A line on a graph that shows the maximum combinations of two goods which a consumer can purchase…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: PROBLEM (2)_ clothing can go for shopping in one of the two stores A or B, where the prices for food…
A:
Q: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…
Q: 7. Marginal utility is equal to average utility at that time when average utility is
A: To find : When is margin utility equal to average utility.
Q: b. Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…
A: The budget line(BL) shows the various combination of two goods(g) that the consumer(C) can afford…
Q: What are the 4 forms of utility? And explain what each one is.
A: Utility: It means the satisfaction received by consuming a good or service.
Q: What is budget set explain what can lead to change in budget set!
A: Budget refers to the amount of money income that is available with the consumer to be used for…
Q: 2. Zhoran has a budget of $36 for fruit. Strawberries cost $4 per pound and grapes cost $3 per…
A: Consumer will maximise utility at a point where slope of an indifference curve is equal to the slope…
Q: Part 1: Utility Maximization Bart and Maggie are Pitt students who are allocating their budget for…
A: Budget equation is an equation of a line that shows income of a consumer and how much both goods…
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: Homer Simpson has a budget of $100 allocated for the consumption of burgers and donuts. If the price…
A: Budget(M)= 100 Burger (B) price(p1) =% 5 ,and Donut (D) price(p2)=%2.50 Budget constraint, M=…
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: Price for good A is $6 and good b is $8. Budget is $36. Good A…
A: Total Utility is the total satisfaction derived from good or service by consumer. Marginal Utility…
Q: To make sure he has enough energy for the teaching, Ernie spares $60 every week to spend on Blue…
A: Given: Budget, M = $60 every week Price of Blue Bull (Px) = $2, Price of Gigantic (Py) = $3
Q: Suppose you have a budget of $12 and cost of a cola is $2 and sandwich is $4. Using this information…
A:
Q: 1. Doreen is looking for a flat to rent in Brighton. a. In choosing a flat, she cares about two…
A: Given information U=min(X,2Y) X= Number of bedrooms Y=Number of bathrooms Total income=1000 Price of…
Q: As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has…
A: Answer to the question is as follows :
Q: Kate has $20. Fish sandwiches cost $5, and a cup of hot chocolate costs $4. What happens to Kate’s…
A: The budget line is defined as the locus of points of a combination of two goods that costs precisely…
Q: Amy is in school learning to weld. She spends long hours studying (and drinking coffee), and long…
A: Answer: Given, Total income of Amy=$70.00 Price of soap=$3.50 per bottle Price of coffee=$14.00 a…
Q: 35. The process of consumers making choices is easy; because resources are plentiful. True or False
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing…
A: a. The budget is the summation of money with the individual with which the individual can make a…
Q: Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56…
A: Budget line shows different combinations of two good that can be bought with the given level of…
Q: Use the following information to answer questions 1 through 8: A student has a monthly budget of…
A: The total number of products you can buy within your current budget is your budget constraint.…
Q: Use the below table to answer this question: Marginal Opportunity Cost Number of Forklifts Total…
A: Marginal Opportunity Cost is the additional cost incurred by buying an additional forklift . It is…
Q: Is Good X an inferior or a normal good? How much Good X will be purchased?
A: As given Qx = 953 - 9Px - 3Py +9Pz + 2M Also Px = $4/unit Py = $1/unit Pz =$7/unit M = $772
Q: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…
A: Joseph is currently spending his entire budget on two goods: food and entertainment. He was willing…
Q: Define, explain and provide an example from your life for each of the following concepts (if you…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Task 4. Five consumers have the following marginal utility of apples and pears: Apples (MU) Pears…
A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…
Step by step
Solved in 2 steps with 2 images
- Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while each burger is $10. Suppose you already purchased 6 pizzas. What is the maximum number of burgers that you can buy with the remaining funds in your budget?b. A student has a monthly budget of $120 to spend on either beer, which cost $6 each, or sodas, which cost $4 each. i. Find out the largest number of beers and the largest number of sodas the student could afford to purchase in one month? ii. After buying 15 sodas, how many beers that the student could afford to purchase in one month? iii. Plot each of the bundles from parts A-C on a graph that measures Beers on the horizontal axis and sodas on the vertical; connect the dots. iv. Show what happens to the budget constraint if the price of sodas rises to = $5 per soda.1. 2. Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he takes and the number of bus rides he takes. His utility function is given by U(b,p) = 3b0-4p0.8. A trip on a plane costs $400, a trip on the bus costs $50 and Frank has $3,000 to spend on travel. a. Draw Frank's budget line on a graph with bus trips on the vertical axis. b. Calculate AND INTERPRET the slope of Frank's budget line. c. Draw a representative indifference curve on your graph and provide a function that describes the slope of this indifference curve (i.e., find Frank's marginal rate of substitution). What is the INTERPRETATION of the marginal rate of substitution? d. What two conditions must be met in order for Frank to maximize his utility? e. What are the utility maximizing quantities of plane trips and bus trips for Frank? Given income of $1000, Px = 25 and Py = 40, find (1) a function for the MRS and (2) the utility maximizing consumption bundle for each of the…
- Suppose you have a budget of $12 and cost of a cola is $2 and sandwich is $4. Using this information form the table, how many sandwiches and cola would you buy at the optimum?With diminishing marginal utility, how do consumers decide how much to consume? Students are expected to give a detailed answer to this question. You must include an explanation about what diminishing marginal utility means in your answer. Concepts such as "budget constraint", "more is better", "utility". "marginal utility", and "marginal utility per dollar spent" must be used in your answer. No graph or calculation is required in this question.Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?
- Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. Draw a graph of Raymond’s budget line (meatloaf on the y axis). ii. Show how Raymond’s budget line changes if the price of pineapplesincreases to $370.The nearby graph shows Claudia's budget constraint for purchases of shoes and purses. Claudia's monthly budget for shoes and purses is $100. Claudia's parents have told her that she has too many shoes and is not allowed to buy more than 1 pair a month. If she buys 1 pair of shoes and 1 purse, she will have $______left each month. Number of 4.5 purses 4.0 3.5 3.0 2.5 2.Q 1.5 1.0 0.5 $50 $10 O $75 $25 0 0.2 0.4 0.6 1.0 1.2 Number of pairs of shoes 0.8Suppose Carlos has a budget of $100 to spend on soft drinks and bottled water. Soft drinks cost $2 per liter. Bottled water costs $1 per liter. Draw Carlos's budget line in the graph.
- Calculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places) The Price of wine is 3 The Price of Cheese is 0.14 The Consumer's budget for wine and Cheese is 9.69 (WINE) (WINE) (CHEESE) (CHEESE) (CHEESE) GLASSES (WINE) WEDGES OF WINE MARGINAL OF CHEESE TOTAL UTILITY MARGINAL UTILITY MARGINAL TOTAL UTILITY MARGINAL UTILITY UTILITY/dollar UTILITY/dollar 1 70 10 Number Number Number Number 35 160 6 Number 65 Number 225 3 41 Number Number Number Number 4 45 4. 288 Number 61 Number 48 349 The Quantity of Wine this consumer would buy to maximize utility is : Number Number The Quantity of Cheese this consumer would buy to maximize utility is : What is the consumer's Total Utility when optimized : Number1. Suppose Frank enjoys traveling and his utility is a function of the number of airplane trips he takes and the number of bus rides he takes. His utility function is given by U(b,p) = 3b0-4p0.8. A trip on a plane costs $400, a trip on the bus costs $50 and Frank has $3,000 to spend on travel. a. Draw Frank's budget line on a graph with bus trips on the vertical axis. b. Calculate AND INTERPRET the slope of Frank's budget line. c. Draw a representative indifference curve on your graph and provide a function that describes the slope of this indifference curve (i.e., find Frank's marginal rate of substitution). What is the INTERPRETATION of the marginalExplain how a rational consumer decides which goods to buy. Note: you must discuss the role of utility, utility maximization and budget in this process.