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- Marginal utility is defined as the increment to total utility that results from the consumption of one more unit of some good or service. The equation for marginal utility is: Group of answer choices The change in total utility / the change in quantity The change in total utility / the change in total revenue The change in quantity / the change in total utility Total revenue / quantity demanded7. 3.1. Explain, with the aid of examples, the following economic concepts in terms of utility theory: 3.1.1 Total utility 3.1.2 Marginal utility 3.1.3 Weighted marginal utility 3.2 Assess how income elasticity of demand is used to define goods and services.9)----------- is the addition to total utility by the consumption of one additional unit of the commodity. A) Total utility B) Ordinal utility C) Average utility D) Marginal utility
- The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive quantities of products A and B. Fill in the MU/P column for each product. Instructions: Enter your answers rounded to one decimal place. Units of Good A 1 2 3 4 5 6 7 Price of Good A = $6 MU of Good A, utils 72 66 60 54 48 42 36 MU/P for A Units of Good B 1 2 3 4 5 6 7 Price of Good B = $4 MU of Good B, utils 48 42 36 30 24 20 12 MU/P for B If Ross has an income of $64, how many units of each will he purchase to maximize his utility? Instructions: Enter your answers as a whole number. units of good A units of good BIt is the change in total utility resulting from the consumption of an additional unit of the commodity. In other words, It is the utility derived from each additional unit. Marginal Utility Total Utility Average Utility O Optimal UtilityCalculate 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 : Number
- Q1. You have Rs.10. The price of samosa is Rs.1 per unit. The price of a steak sandwich is Rs.3 The utility received from consuming samosa and steak is given below. a. How many samosas and steak sandwiches should be bought to maximize utility? Calculate utility maximizing quantities of samosas and steak sandwiches when income equals Rs.10 and the price of beer is Rs.1 and the price of steak sandwiches is Rs.3 using the utility b. maximizing rule No. of TU of samosa MU of No. of steaks TU of steaks MU of steaks samosas samosa 1 15 1 24 2 24 45 32 63 4 39 4 75 45 84 47 87Total utility ______ at a ______ rate with every additional purchase of a good/service. Group of answer choices increases, decreasing decreases, increasing increases, increasingColumns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C. Unit of product (1) Marginal utility, A (2) Marginal utility, B (3) Marginal utility, C First 18 39 12 Second 16 36 10 Third 14 33 9 Fourth 12 30 8 Fifth 10 27 7 Sixth 8 24 5 Seventh 6 21 3 If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?
- Consumer satisfaction from consuming goods X and Y is as follows:U=10X+14Y-X2-Y2 and consumer income 3X+Y=12Look for:1. The marginal utility function for goods X and Y?2. What are the values of X and Y for maximum utility?3. Prove with the results of X and Y obtained whether optimal customer satisfaction is achieved?The following table shows the total utility gained from the consumption of Fanta Lemon in a week. Quantity 1 2 3 4 5 6 7 Total utility 20 35 45 53 58 58 48 (i) Calculate the marginal utility. What do you observe? (ii) Sketch the total utility and marginal utility curves. (iii) If the price of Fanta Lemon increases from `Rs.8 to `Rs.10, how will it affect its consumption? Explain your answer using the data above.True/False Marginal utility refers to the satisfaction or pleasure that occur due to the additional consumption of one more unit