4. The following questions refer to the following graph of a consumer's indifference curve.a.b.Quantity of Y403020100TIA10CB120 30 40Quantity of XXWhat is the consumer's marginal rate of substitution between points A and C?At point C, approximately what is the consumer's marginal rate of substitution atpoint?

The marginal rate of substitution (MRS) is the rate at which a given consumer will substitute his…

4. The following questions refer to the following graph of a consumer's indifference curve. a. b. Quantity of Y 40 30 20 10 0 I 10 C 20 B 30 Quantity of X 40 X What is the consumer's marginal rate of substitution between points A and C? At point C, approximately what is the consumer's marginal rate of substitution at point?

4. The following questions refer to the following graph of a consumer's indifference curve. a. b. Quantity of Y 40 30 20 10 0 I 10 C 20 B 30 Quantity of X 40 X What is the consumer's marginal rate of substitution between points A and C? At point C, approximately what is the consumer's marginal rate of substitution at point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The table below represents Sue’s preferences for bottled water and soft drinks, the combination of which yields the same level of utility. Combination of Bottled Water and Soft Drinks Bottled Water per Month Soft Drinks per Month A 5 11 B 10 7 C 15 4 D 20 2 E 25 1 Calculate Sue’s marginal rate of substitution of soft drinks for bottled water at each rate of consumption of water (or soft drinks). Relate the marginal rate of substitution to marginal utility.
4. John has a utility for the quantity of sandwiches, Xs, and quantity of burgers, Xp, that he consumes, represented by the following equation: U(X,X) = XX His income is Y = $24. The price of a sandwich changes from X, = $1 to X, = $4 while the price of a burger remains at X, = $6. Solve for the compensating variation and equivalent variation associated with this price increase.
c. Samuelson maximizes his utility by spending his entire income of $29 on video 3.5 games and cards. The price of video games is $4, and he buys 2 games. The marginal utility from the last card he buys is 42. The table represents Samuelson's marginal utility from each good. Marginal utility Quantity Video Games Cards 1 45 70 28 54 3 16 42 4 10 16 Required: i. Calculate the price of a card using the condition that Samuelson's marginal utilities per dollar are equal. ii. What is Samuelson’s total utility?
10. Assume an individual's preferences are represented by the following indifference map and he has an income of S400. Which of the following is shown when the price of Good I is $20 and the price of Good 2 increases from $10 to S16? Note: Even though the price of Good 2 is increasing, the steps to determine the income and substitution effects are the same. 50 45 40 35 30 25 20 15 10 10 15 20 25 30 35 40 45 50 Good 1 Good 2 is a normal good. Good 2 is an inferior good, but not a Giffen good. Good 2 does not satisfy the Law of Demand. • Ignoring the Income Effect, the Substitution Effect will cause the individual to consume more of Good I. A. B. 21 C. 3 None of the above statements are true. D. Good 2
The following table shows Madison's utility from consuming popcorn and Coke. Suppose that Madison has income of $9.00, the price of popcorn is $3.00, and the price of Coke is $0.75. If Madison wants to maximize her utility, how much popcorn and Coke should she buy? Рорсorn Marginal Utility 192 Coke Quantity Marginal Utility 1 144 144 108 3 96 72 4 48 36 24 18 6. 12 Madison should buy boxes of popcorn and cans of Coke. (Enter your responses as integers.)
Chocolate Bars per week 50 40 25 20 15 10 0 1 2 E b 3 C 6 4 5 d 12 13 14 Budget Line 10 Pizzas per week Use the graphs above to answer the following questions. The graph shows a consumer's budget allocation toward chocolate and pizza per week and the indifference curves of various combinations of those goods. A. Compare points "e" and "f": which point yields more utility for the consumer? "e" and "f" yield the same utili B. Given the budget of this consumer, how many total pizzas can this consumer purchase per week? 10 C. If this consumer wanted to maximize utility by purchasing some combination of chocolate and pizzas, how many pizzas would this consumer purchase? 4
2. Draw a consumer's indifference curves for orange juice and chicken rice . Describe and explain four properties of these difference curves.
4. If we have the utility function, U(x)=(x−7)^2, and we know that there is an indifference set around x = 4 and an upper contour set of x = 6. How to graphically represent this function? I'm confused about how to draw the upper contour set on the graph? I know the concept that upper contour is the area over the convex line, but don't know how to put it on the graph. Could you draw a simple graph to help me identify the upper contour?
The initial budget constraint (BC₁) shows the Steins' budget constraint when the price of a fancy dinner is $100. At this price, Larry and Megan would choose to consume five fancy dinners. Suppose that the price of a fancy dinner decreases to $50, shifting their budget constraint to BC₂, which represents a new relative price of five diner breakfasts per fancy dinner. (Hint: The blue line labeled H is parallel to BC₂ and tangent to I₁ at point S.) In order to remain as happy as they were before the price decrease-that is, to consume at some point on the same indifference curve as they were on initially (1₁)-the Steins' income spent on fancy dinners and breakfast at diners would now only have to be $ . However, in reality, rather than maintaining their original level of utility, the Steins choose the optimal bundle along their new budget constraint. At this point, they are off than before the price change in fancy dinners. On the following table, indicate which point movement represents…
How does the law of diminishing marginal utility relate to changing income? Select one: a. The marginal benefit of an extra dollar of income rises as income rises. b. The marginal benefit of an extra dollar of income falls as income rises. c. The total utility gained from a small income is higher than the total utility gained from a high income. d. The total utility gained from a high income is higher than the total utility gained from a low income.
8. In the following diagram, we show one of Jane's indifference curves and her budget line. a. If the price of good X is $100, what is her income? b. What is the equation for her budget line? c. What is the slope of her budget line? d. What is the price of good Y? e. What is Jane's marginal rate of substitution in equilibrium? Good X 40 Good Y
given the following informationon quantity consumed of cheese and total utility for Carl answer the following can you please help to check my answer. thanks qty (in oz) tu mu 1 50 0 2 70 20 3 85 15 4 95 10 5 90 5 a) what is the marginal for each addtion ounce of cheese - see above b) at a price of $16 an ounce, how many ounces of caviar should carl purchase to optimize his satisfaction? my answer 2 c) what is his conusmer surplus at this optimal level of consumption? (can you help me solve this I see too many diffrence equation for this very confuse)