Bob budgets $24 a week for entertainment. He splits his time between going to the movies and going to the gym. Based upon the information contained below, find Bob's utility maximizing point.First: Complete the budget constraint. (Determine what combinations are possible.)Table for Budget Constraint:- Income: $24- Movie Price: $6 per movie- Gym Session Price: $3 per sessionMovies | Gym Sessions--- | ---(blank) | (blank) Second: Complete this chart and use it to determine the utility maximizing point.Movies Table:- Movies: Number of movies attended- Total Utility: Total satisfaction from attending movies- MU: Marginal Utility (additional satisfaction from consuming one more movie)- MU per $: Marginal Utility per dollar spent| Movies | Total Utility | MU | MU per $ ||--------|---------------|----|----------|| 0 | 0 | | || 1 | 30 | | || 2 | 55 | | || 3 | 76 | | || 4 | 92 | | || 5 | 103 | | |Gym Visits Table:- Gym Visits: Number of gym sessions- Total Utility: Total satisfaction from attending gym sessions- MU: Marginal Utility (additional satisfaction from consuming one more session)- MU per $: Marginal Utility per dollar spent| Gym Visits | Total Utility | MU | MU per $ ||------------|---------------|----|----------|| 0 | 0 | | || 1 | 50 | | || 2 | 85 | | || 3 | 115 | | || 4 | 107 | | || 5 | 111 | | || 6 | 114 | | || 7 | 115 | | |

According to the theory of utility maximization, a consumer allocate his/her money incomes in such a…

Answered: 5. Bob budgets $24 a week for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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solve both the questions in the image provided.
7. Bob receives utility from days spent traveling on vacation domestically (D) and daysspent traveling in a foreign country (F) as given by the utilityU(D; F) = DFThe price of a day spent traveling domestically is 160 pounds and in a foreigncountry 200 pounds. Bobís annual budget for traveling is 8000 pounds. (a) Find Bobís utility maximising choice of days traveling domestically and of daystravelling in a foreign country. Find also his utility level from consuming thatbundle. Suppose that the price of domestic traveling increases to 250 pounds per day.Denoting his budget for traveling x, (suppose by now that it is unknown) findthe demand for D and F under the new prices as a function of x.
Suppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound, and pork is $3.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, the ratio of your marginal utility of beef to your marginal utility of pork is
3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z. What is his MRS? a. b. c. Solve for the optimal choice of golf and bowling. Draw a graph of the budget line (including intercepts), a few indifference curves, and the optimal choice for Sam.
1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this product is $26. Calculate the price change of Product A if there is a 1.3 times increase in the quantity available to purchase. Enter your answer in the box below, use a minus sign to show a decrease in price, and round to the nearest whole number if necessary. 2. Consider the spending choices of the following consumer: Emily's income is spent on colas and orange sodas, as well as other goods. She considers colas to be a normal good and orange sodas to be a normal good. What will happen to Emily's purchases of these goods if her income decreases? Select the best answer. She will buy more colas and fewer orange sodas.She will buy fewer colas and fewer orange sodas.She will buy more colas and more orange sodas.She will buy fewer colas and more orange sodas. Is the following statement true or false? Select the best answer. The price ratio of coffee to cookies is 1.5, so the marginal utility…
How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?
Question 15 Nadia says, "You would have to pay me L.E. 600 for me to be willing to attend that concert." For Nadia, the marginal utility of the concert is: positive, but declines rapidly. negative. zero. positive, but less than the ticket price.
8. Normal and inferior goods Antonio likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Antonio's indifference curves for going to ballgames and symphonies. With Antonio's initial budget constraint (BC1), he chose to go to four symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies and three ballgames per month (point Y). BALLGAMES 3 8 10 0 4 5 SYMPHONIES BC 8 BC 10 ? Of the following choices, which could have shifted Antonio's budget constraint from BC₁ to BC2? Check all that apply. His income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. normal The price of symphony tickets increased…
Q6) Utility Ratio and Consumption Maximization A consumer downloads 3 movies and 4 apps per week. Suppose the price is $2 per movie and $2 per app, and the marginal utility for this consumption level is 6 for a movie and 8 for an app. Instructions: Round your responses to one decimal place. a. Calculate, show the formula, marginal utility per dollar. ..Per movie ......Per app b. Is this optimal consumption? c. If not, how should they change their consumption to maximize?
10- Quantity of D 8 6 2 0 2 6 8 10 4 Quantity of C Refer to the budget line shown in the diagram. Which of the following combinations of goods is unattainable for this consumer? 2 units of C and 6 units of D 1 unit of C and 8 units of D 4 units of C and 6 units of D 5 units of C and no units of D
Please find the attachment.
Jesse has a budget of $16 to spend on either ice cream or cookies at the movie theater. A scoop of ice cream costs $4 while cookies costs $2. Use the table below to identify the utility maximizing quantity of ice cream and cookies given Jesse’s budget constraint. HINT: Use utility maximizing formula, MU1/P1 = MU2/P2 Ice cream (Quantity) Total Utility Cookies (Quantity) Total Utility 1 8 1 20 2 12 2 35 3 24 3 56 4 30 4 60 5 32 5 62 6 35 6 68 Group of answer choices 2 ice cream and 4 cookies 1 ice cream and 5 cookies 3 ice cream and 6 cookies

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