Please correct answer and don't use hand raiting 24. Michael has utility as follows.Assume that 2 baskets A & B lie on the same indifference curve. Assume that basket A contains more of good Y than basketB but less of good X than basket B. As the consumer moves down & to the right (from basket A to basket B) along hisindifference curve, total utilityb. remains constant.c. decreases. d. Changes, but the direction is ambiguousa. increases.e. you cannot determine what happens here without information on prices.Answer_[[[Hint: You're driving a bus for the city. Alan gets on at Adams street and pays 75 cents. Betty and Bob get on at Buford Road, and pay 45 centsand $1.25. Carey gets off at Canton Square. Dolores boards at Dane. What is the name of the person driving the bus...]]

Option a) increases: This option is incorrect because utility does not increase when moving along an…

Answered: 24. Michael has utility as follows.…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 2SCQ: Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to...

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Would you expect total utility to rise or fall with additional consumption of a good? Why?
Is it possible for total utility to increase while marginal utility diminishes? Explain.
Question 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.
4. A consumer uses all her available income to buy food and gasoline. Her indifference curve and budget constraint are shown in the diagram below. At point A, the marginal utility per dollar spent on food is the marginal utility per dollar spent on gasoline. gasoline A IC food a. greater than b. less than c. equal to 5. Megan is currently spending her entire candy budget. According to her preferences, you could take away up to 5 candy bars if you give her 3 bags of sour patch kids without changing her utility. The price of a candy bar is $0.75 and the price of a bag of sour patch kids is $1.50. Is Megan maximizing her utility? If not, how should she change her consumption bundle? a. No, she should buy more candy bars and fewer bags of sour patch kids. b. No, she should buy more bags of sour patch kids and fewer candy bars. c. No, she should buy more bags of sour patch kids and more candy bars. d. No, she should buy fewer bags of sour patch kids and fewer candy bars. e. Yes, she is…
In situation I below the utility maximizing consumer buys bundle C. Draw an indifference curve (IC) going through C Is it conceivable that in situation II the consumer will buy B? Explain. What about D? Explain.
Pls solve asap
not use ai please
-uppose John is currently at point A on the indifference curve to the right. If he moves to point B, en A. the level of utility remains constant because the marginal utility of pizza increases and the marginal utility of Pepsi decreases. OB. the level of utility increases because the marginal utility of pizza increases. OC. the level of utility remains constant because the marginal utility of pizza decreases and the marginal utility of Pepsi increases. OD. the level of utility decreases because the marginal utility of Pepsi decreases. Pepsi (bottles per week) B Pizza (slices per week)
Consumer Theory Daniel spends all his money on only two goods: chocolates (good 1) and milkshakes (good 2). We have information about his purchases, income and prices for 4 weeks: A, B, C and D. For each week, the budget line and the goods bought are shown on the graph below. a) Suppose that Daniel’s preferences are transitive and satisfy "more is better". Shade all the bundles that you are certain are worse for Daniel than bundle A in one colour, and all the bundles that you are certain are better for Daniel than bundle A in a different colour. (You can use different patterns instead of colours.) Indicate which is which. Explain. b) Repeat part a), assuming that Daniel’s preferences are transitive, strictly convex and satisfy "more is better". c) Suppose that Daniel’s preferences are transitive and satisfy "more is better". Compare bundle (60,0) to bundle A. Which one is better? Consider all bundles that lie on the straight line between bundles A and (60,0). Are these bundles worse…
2. Preferences:a. Suppose Wendy consumes 10 sandwiches and 10 cups of coffee over the course of a week.Her utility at the end of the week is equal to10. Now suppose Amanda consumes the same bundle, but her utility at theend of the week is 20. Can we say that Amanda is twice as happy as Wendy?Why or why not. b. Alex prefers 3 slices of cake to 4 slices,4 slices of cake to 5 slices, and 3 slices of cake to 5 slices. What is so strange about Alex? Are Alex's preferences transitive? Is Alex an irrational consumer? Explain your answers briefly.
f 1 Appendix - showing an indifference curve. Quantity of Y C B Quantity of X The slope of the budget line facing the consumer is a. -Px/Py O b. -X/Y O c. -Py/Px d. -Y/X e. none of the above
| 3.9. Preferences and indifference curves. Assume that a con- sumer purchases only two goods, x and y. Based on the information 3.3. THE MARGINAL RULE 124 in each of the following questions, sketch a plausible set of indiffer- ence curves (that is, draw at least two curves, and indicate the direc- tion of higher utility). (a) Nomis enjoys muffins (x) and chai latte (y) if they are consumed together. (b) Tra likes chocolate (x) but he hates broccoli (y). (c) Aras likes steaks (x) but she doesn't care one way or the other about apples (y). (d) Fernando always buys five Polo-shirts (x) with every pair of jeans (y).

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