3. A consumer is maximizing his satisfaction. Due to a change in tastes, his marginal utility increases for one of the products he is consuming. As he acts, what will happen to the marginal utilities of other goods that he is consuming? Those goods’ marginal utilities will: a. increase and then eventually decrease b. decrease and then eventually increasec. increase.d. decrease.e. not change.

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: Complete the following table and answer the questions below: Units Consumed Total Utility Marginal…

A: Total utility  is the total amount of happiness a consumer derives from a good at any particular…

Q: 6. The law of diminishing marginal utility can be stated as follows: a. as the amount of a good…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS…

A: Answer: Given, Marginal utility of book MUB=2Marginal utility of DVD MUD=13PB=$1PD=$12 The…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: d. Using the two prices and quantities for X, derive a demand schedule (a table showing prices and…

A: Demand and supply In an economy there is always a demand for goods and services and the supply of…

Q: 4. A consumer uses all her available income to buy food and gasoline. Her indifference curve and…

A: Answer 4 OPTION C - EQUAL TO CONSUMER MAXIMIZE UTILITY when indifference curve tangent to budget. At…

Q: Total utility is maximixed in the consumption of two goods by equating the  a.Prices of both goods…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: 1.There are two goods F and C. Let MU and P denote marginal utility and price of each good.…

A: Price effect consists of income effect and substitution effect. Substitution effect is always…

Q: 40. As long as the principle of diminishing marginal utility is operating, any increased consumption…

A: The change in the total utility from the consumption of an additional unit of a good is known as a…

Q: 1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get…

A: Answer -

Q: 1. Examples of the principle of diminishing marginal utility include all of the following EXCEPT: A.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The table shows Elaine's total utility from pizza and hamburgers. Elaine spends $10 a week on pizza…

A: A consumer will consume that bundle where the law of equi marginal utility is satisfied. The law of…

Q: Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he…

A: A rational consumer will consume where MU/$ of one good is equal to the MU/$ of other good.  This…

Q: 5. Reggie consumes only two goods: food and shelter. On a graph with shelter on the horizontal axis…

A: A consumer's desired varied possible pairing of two commodities is represented by the indifference…

Q: Diminishing marginal utility means that as more of a good is consumed, A. more income is spent. B.…

A: The correct answer is given in the second step.

Q: What is the definition of marginal​ utility?   A. The average utility from consuming a good or…

A: ANS Marginal Utility (MU) can be defined as the gain in the utility level that is achieved when the…

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: The law of diminishing marginal utility says that...   A. as a person consumes more and more of a…

A: The marginal utility is the satisfaction derived from the consumption of an additional unit. The…

Q: Tony is throwing a party at his Fraternity and is trying to choose what booze to buy. A bottle of…

A: Disclaimer : - Since you asked multipart question, we are solving only first 3 subparts as per…

Q: 14. of each extra unit of a good decreases as consumption increases. occurs when the marginal…

A: Diminishing marginal utility refers back to the concept that as an individual consumes more units of…

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: QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on…

A: Utility refers to the satisfaction a consumer gets from the consumption of a commodity.Marginal…

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…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.