44) A person is in equilibrium when marginal utility per dollar equals 1. False True

Q: A consumer has $10 to spend on potato chips and sodas. The potato chips cost $2 per bag and the…

A: The budget line shows the alternate combination of two goods which is affordable and can be…

Q: Jack and Jill live in the same village where they both face the same price. Jack has preferences…

A:

Q: Mary can consume two goods X₁ and X2, where X₁ and X₂ are the quantities of two goods purchased.…

A: Mary's preferences are represented by the utility function: U(X1,X2)=X10.6X20.4Price of the good X1…

Q: Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y).…

A: Utility function: U = Min (2X, Y) --------------------- Budget constraint: Price of good X (Px) = $2…

Q: ay must a budget constraint have a negative slope? O Income and quantity demanded are inversely…

A: Budget constraint measures the combinations of two goods that a consumer can buy with the given…

Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…

A: Laspeyres Index is a consumer price index used to calculate the change in prices of a basket of…

Q: In the diagram to the right, we have five different combinations of movies and books. Combination A…

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

Q: Consider a consumer who has utility function U(x,y) = x + 2y, where x is the amount of good 1, and y…

A: Utility function is a representation of a consumer's preferences, showing how they derive…

Q: Assume that a combination of two goods reflects a point of tangency between the budget line and an…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: A consumer has $100 and would like to purchase food (F) and gas (G). Suppose their utility is given…

A: Given: U ( F,G ) = F 0.8 G 0.2 M= PF x F + PG x G 100 = PF x F + PGx G MUF= o.8 ( G / F ) 0.2 MUG…

Q: The marginal utility of the last unit of apples consumed is 12, and the marginal utility of the last…

A: Marginal utility is the utility derived by the consuming 1 additional unit of good.

Q: The daily total utility per quantity of consumption is shown in the figure. This shows that the…

A: The additional satisfaction a client gets from possessing one additional unit of associate item or…

Q: a) If the price of food is $1, and of all else is $2, how much of each good will Pat choose? b) If…

A: Consumer theory studies how people decide to spend their money based on their individual preferences…

Q: A consumer consumes two agricultural products: Red Meat, and Tomatoes according to the following…

A: Let y  be the income of the consumer and let pR , pT be the prices of R and T. Then, given pR , pT ,…

Q: Diana loves to buy shoes. However, after buying 10 new pairs of shoes she realizes that the tenth…

A: Marginal Utility : It explains the change in the total utility as consumer consumes an additional…

Q: With a total budget available of $56.00, what does the utility-maximizing rule tell you the optimal…

A: We can easily see if we take 2 quantity each that is 2*14+2*14 = 28+28 = $56 which is within our…

Q: Your utility function is defined as U = x¹/3y2/3 where x and y are the only two goods you consume.…

A: Utility function represents the relationship between the utility and commodities that are consumed.

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

Q: Suppose the price of a candy bar is $1.25, the price of a bag of chips is $1.75, and the budget is…

A: If price of only one good increases (decreases), budget line rotates inward (outward) along the axis…

Q: The figure below shows a consumer maximizing utility at two different prices (the left panel) and…

A:

Q: A consumer can maximize utility relative to their budget if they consume where   Question 22…

A: Utility maximization is the ultimate goal of consumers.

Q: I. You only consume two goods and your preferences are represented by utility function U(x1, x₂) =…

A: Monotonic preference refers to a preference ordering in which an individual's preference for one…

Q: Suppose a consumer's utility function is given by U(X,Y) XY. Also, the consumer has $720 to spend.…

A:

Q: sider the utility function U(x, y) = xy, which describes the enjoyment Emi gets from consuming s (x)…

A: Equilibrium condition:  MRSxy = Px/Py

Q: Why would an ounce of gold be priced higher than an ounce of coffee beans, even though coffee is…

A: Marginal utility refers to the additional satisfaction or value gained from consuming one additional…

Q: In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is…

A: The budget line is described by the equation $250 = $50X + $125Y, where $250 is the consumer's…

Q: Q2. When do economists say that a consumer is in equilibrium, what factors can distort the…

A: 2)The phrase "consumer equilibrium" describes a situation in which a consumer is totally satisfied…

Q: A consumer derives his utility from two goods, the amounts of which are x and y, according to the…

A: Given  Utility function U=2lnx+lny         .......(1) Px=$2 and Py=$4 Consumer income =$48 We have…

Q: The marginal rate of substitution is the maximum number of units of good Y that the consumer would…

A: Option -: All of the above is correct The marginal rate of substitution is defined as the…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: At the local ski resort, the rates for a day on the slopes are as follows:   4-hour pass =$23…

A: Marginal utility is the additional benefit derived from consuming an additional unit of a good. The…

Q: A utility function is given as U = √MB where B represents the quantity of books consumed and M…

A: A utility function me­asures how satisfied or happy an individual is when consuming goods and…

Q: A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y. a. The budget set is illustrated…

A: The budget constraint is given by the inequality: 500≥4X+5Y.To find the values of A (the intercept…

Q: (a) What are the effects of an increase in the price of good A on a consumer’s demand if i) good A…

A: The fluctuations that happen between demand and also the supply-side decides the levels of prices…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: The consumer is consuming two goods, X and Y in equilibrium. MU from X=20units MU from Y=35units…

Q: (A) Suppose an individual who derives utility u(x, y) from consuming a units of the good X and y…

A:

Q: People who misunderstand the optimal purchase rule argue that if a consumer buys so much of a good…

A: It can be defined as the level of consumption that maximizes the consumer's overall well-being or…

Q: Consider your preferences for Gasoline (X) and a composite good (Y). Your utility function is U(X,Y)…

A: The utility is maximized where the budget line tangents the indifference curve.

Q: Calculate the Marginal Utility of Y What is the optimal Choice of X and Y given the PX = $6, PY = $2…

A: Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good…

Q: Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and…

A: In economics, utility refers to the pleasure or satisfaction that consumers get from using a…

Q: price of a good changes. How could you calculate how much income the consumer would have to lose at…

A: A change in the wealth of a consumer given the current market prices that will have the same effect…

Q: II. Your preferences are represented by the utility function U(x₁, x₂) = (x² − x²)⁰.5 for x₁ > 0, x₂…

A: Marginal utility is the additional satisfaction or benefit that a consumer derives from consuming…