Please help me answer no. 3 and 4 only. Thank you 1. llustrate in a supply/demand diagram how the equilibrium price and quantity will change if the followingevents occur. Provide a short summary after each diagram.a. Both demand and supply increase (change in D=change in S)b. Demand goes up while supply goes down; assuming that change in demand is greater.c. Supply rises and demands falls, assuming that change in supply is greater.2. Draw indifference curves that represent the following individuals preferences for the following goods:a. Annie dislikes roller coaster rides and prefers riding the Ferris wheel.b. Eric loves barbecue and dislikes wine. However, if he is served wine and barbecue, he will politely drinkthe wine.c. Eva insists on consuming exactly one cup of tea for every shawarma she eats.3. Which good would you expect to have a more elastic demand? Why? Choose one (1) only.a. Water or diamondsb. Insulin or nasal decongestant tabletc. Coke or beverages in generald. Holiday travel over the week or holiday travel over the yeare. Salt or salmon4. Tell whether the following goods will have an elastic or inelastic supply.a. Grapesb. Oil/fuelC. Rice

Definition: elasticity of demand alludes to how delicate demand for a decent is contrasted with…

3. Which good would you expect to have a more elastic demand? Why? Choose on a. Water or diamonds b. Insulin or nasal decongestant tablet c. Coke or beverages in general d. Holiday travel over the week or holiday travel over the year e. Salt or salmon

3. Which good would you expect to have a more elastic demand? Why? Choose on a. Water or diamonds b. Insulin or nasal decongestant tablet c. Coke or beverages in general d. Holiday travel over the week or holiday travel over the year e. Salt or salmon

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 9QP

See similar textbooks

Similar questions

Answer the following short questions:a. Suppose that a consumer’s preferences between goods x andy are represented by the utility function u(x, y) = x^2 + 16xy + 64y^2. If these two goods have the same price, describe the optimal consumptionchoice of this consumer.b. Suppose that when the price of a good change, the incomeand substitution effects change the consumer’s demand for that goodin opposite directions.i. Is this good a normal or an inferior good? Explain.ii. Is this good a Giffen or an ordinary good? Explain.c. Is the following statement true or false? The differencebetween a monopolist’s marginal cost and its profit-maximizing price issmaller when the demand is more elastic.
When and economist says the demand, for a product has increases, he or she mean that a) consumers are willing and able to purchase more at any given price. b) the demand curve has shifted to the left c) The product has become more scarce and consumers therefore want it more d)Consumers would be willing and able to pay less to recieve the same quantity. e)The price has decreased and consumers will therefore purhcase more of the product
For normal goodsA) the substitution effect of a price decrease will decrease the quantity of the good demanded while theincome effect of a price decrease will increase the quantity of the good demanded.B) the substitution and income effects of a price decrease will both increase the quantity of the gooddemanded.C) the substitution and income effects of a price decrease will both decrease the quantity of the gooddemanded.D) the substitution effect of a price decrease will increase the quantity of the good demanded while theincome effect of a price decrease will decrease the quantity of the good demanded.
Considering the following Diagram of consumer equilibrium, answer the following questions. If consumer has $100 to spend on X and Y at Budget line DE, what are the prices of X and Y products. What combination of X & Y maximizes the consumer’s total utility at Budget line DE? Why a consumer has moved to point B on Budget line DE1 from Point A of Budget line DE? Derive the demand curve of X product. What is relationship between X and Y products
Illustrate and explain how consumer equilibrium is achieved using the indifference curve?Discuss how the demand elasticity of a product changes? Give examples.
really need detailed solution with steps and graphs. will leave a like if it helps!
1.There are two goods F and C. Let MU and P denote marginal utility and price of each good. SupposeMUF = 2,MUC = 1,PF = 1,PC = 2.Are you maximizing your satisfaction? If not, what would you do to increase your satisfaction? Explain. 2.What is the substitution eﬀect? Can it cause the quantity to decrease given a decrease in price? Explain 3.What is the income eﬀect? Can it cause the quantity to decrease given a decrease in price? Explain
4. Assume that the following graph show the indifference curve and budget line for a consumer who is choosing between "all other items" and "hand sanitizer". All other items A Hand sanitizer We know that the preferences and demand for hand sanitizer increased dramatically starting in mid-March 2020 due to the coronavirus pandemic. How would you show a change in preferences for hand sanitizer on the graph given above? Would the budget line change, or would the position of the indifference curve change? You may assume that income and prices of all other items and hand sanitizers did not change. Please give an explanation and show the changes on the graph.
1. If the consumer can only buy product x, how much will the consumer buy and what will be the total utility? 2.If the consumer buys both product x and product y, how much will the consumer buy of each to maximize utility? 3.When the consumer purchases the utility-maximizing combination of product x and product y, what is the total utility?
Demonstrate how a consumer’s equilibrium changes if the price of a product changesaccording to marginal utility theory. Include in your answer a discussion of the derivation of the demand curve according to marginal utility theory. Please provide a detailed answer with a graph if possible.
Please help with the attached
Please answer the all question from the picture with the steps... God bless You... ☺️