3. Balancing utility and priceSuppose Teresa has to choose between purchasing plane tickets and milk.Which of the following is the utility-maximizing rule that Teresa should follow while choosing the optimal quantities of these two goods? (Note: In theanswer options that follow, MU stands for "marginal utility.")O (MU of Milk) x (Price of Milk) = (MU of Plane Tickets) x (Price of Plane Tickets)O MU of Milk = MU of Plane TicketsMU of MilkMU of Plane Tickets%3DPrice of MilkPrice of Plane TicketsMU of MilkMU of Plane Tickets=Price of Plane TicketsPrice of MilkSince milk costs little and plane tickets are expensive, it must follow that when people choose their optimal quantities of milk and plane tickets topurchase, the marginal utility they receive from the last plane ticket they buy isv than the marginal utility they receive from the lastgallon of milk they buy.

3. Balancing utility and price Suppose Teresa has to choose between purchasing plane tickets and milk. Which of the following is the utility-maximizing rule that Teresa should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") O (MU of Milk) × (Price of Milk) = (MU of Plane Tickets) × (Price of Plane Tickets) O MU of Milk = MU of Plane Tickets MU of Milk MU of Plane Tickets Price of Milk Price of Plane Tickets MU of Plane Tickets Price of Milk MU of Milk Price of Plane Tickets Since milk costs little and plane tickets are expensive, it must follow that when people choose their optimal quantities of milk and plane tickets to purchase, the marginal utility they receive from the last plane ticket they buy is v than the marginal utility they receive from the last gallon of milk they buy.

3. Balancing utility and price Suppose Teresa has to choose between purchasing plane tickets and milk. Which of the following is the utility-maximizing rule that Teresa should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") O (MU of Milk) × (Price of Milk) = (MU of Plane Tickets) × (Price of Plane Tickets) O MU of Milk = MU of Plane Tickets MU of Milk MU of Plane Tickets Price of Milk Price of Plane Tickets MU of Plane Tickets Price of Milk MU of Milk Price of Plane Tickets Since milk costs little and plane tickets are expensive, it must follow that when people choose their optimal quantities of milk and plane tickets to purchase, the marginal utility they receive from the last plane ticket they buy is v than the marginal utility they receive from the last gallon of milk they buy.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 12PAE

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Similar questions

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TOTAL AND MARGINAL UTILITY Reset E UTILITY CALCULATIONS Total Utility Quantity Consumed 70 Total Marginal Utility Utility 60 50 40 22 30 22 20 18 10 40 14 4 6. 8 54 Quantity Consumed Marginal Utility 10 20 4 64 6. 10 5 70 1 3 4 2 -10 72 -20 -2 Quantity Consumed 70 Quantity Consumed -6 64 1 6. 8.
PROBLEM You are choosing between two goods, X and Y, and your MU from each is shown in the table below. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities of X, derive a demand curve for X. 5. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what maximum total utility for products X and Y that will you realize? Use a number, no decimal value, no commas, no space, no unit of measurement. 6. Assume that, other things remaining unchanged, your income is $9 and the prices of Y is $1, and the price of product X falls to $1. How many units of product X will you purchase to maximize utility? Use a number, no decimal value, no commas, no space, no unit of measurement. please answer all questions. Thanks
5
Suppose Susan has to choose between purchasing high-definition televisions and milk. Which of the following is the utility-maximizing rule that Susan should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") O MU of Milk = MU of HDTVS O (MU of Milk) × (Price of Milk) = (MU of HDTVS) × (Price of HDTVS) MU of Milk MU of HDTVS Price of HDTVS Price of Milk MU of Milk MU of HDTVS Price of Milk Price of HDTVS Since milk costs little and high-definition televisions are expensive, it must follow that when people choose their optimal quantities of milk and high- definition televisions to purchase, the marginal utility they receive from the last high-definition television they buy is v than the marginal utility they receive from the last gallon of milk they buy.