8) According to the figure below, when the price of X is $6, the price of Y is $24, and income is $48,Steve's optimal choice is point C. Then the price of Y decreases to $8. Steve's new optimal choice ispointa) Ab) Bc) Dd) E9) Refer to the figure below. You have $36 to spend on good X and good Y. If good X costs $6 andgood Y costs $12, your budget constraint is:109a) ABb) BCc) CDd) DE14578B9 10 11 12

The optimal consumption bundle of a customer also varies when the price of a good changes. The…

8) According to the figure below, when the price of X is $6, the price of Y is $24, and income is $48, Steve's optimal choice is point C. Then the price of Y decreases to $8. Steve's new optimal choice is point a) A b) B ) D d) E 9) Refer to the figure below. You have $36 to spend on good X and good Y. If good X costs $6 and good Y costs $12, your budget constraint is: a) AB b) BC x) CD d) DE 2 3 4 5 D 9 10 11 12

8) According to the figure below, when the price of X is $6, the price of Y is $24, and income is $48, Steve's optimal choice is point C. Then the price of Y decreases to $8. Steve's new optimal choice is point a) A b) B ) D d) E 9) Refer to the figure below. You have $36 to spend on good X and good Y. If good X costs $6 and good Y costs $12, your budget constraint is: a) AB b) BC x) CD d) DE 2 3 4 5 D 9 10 11 12

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 25SQ

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Similar questions

You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the following table. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X.
The prices of good A and good B are $3 and $2 respectively. Theodore has a budget of $29 to alternate between the two. Currently, his consumption choices are 7 units of good A and 4 units of good B. If at one point he is given $5 to spend exclusively on good A, how would this affect his budget constraint? What is Theodore's bliss point if he now consumes 8 units of good A and 5 units of good B as a result?
You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (price–quantity-demanded table) for X.
illustrate diagrammatically how the optimal choice of a consumer changes as a result of a decrease in the consumer’s income, when one of the two goods on offer is a normal good. To complete this activity you must have a clear understanding of how the optimal choice is determined, what happens to the budget constraint as the consumer’s income decreases, and the concept of a normal good.
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Question 8 The price of good X is $1.50 and that of good Y is $ 1. A particular consumer who evaluates the marginal utility of Y to be 30 utils and is in equilibrium with respect to purchases of X and Y must consider the marginal utility of X to be: 15 utils none of the suggested options. 30 utils 45 utils 20 utils
Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas used and your calculations. What is marginal utility (MU) of the 3rd apple? What is marginal utility (MU) of 6th strawberry? What is the marginal utility per dollar spent on the 3th apple? What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of strawberries and apples satisfies the following rule? How do you know?
2
Michael derives utility from only two goods, hamburger (Qh) and fanta (Qf). The marginal utility that Michael receives from cake (MUh) and donuts (MUH) are given as follows: MUh = Qd MUf = Qh Michael has an income of R500 and the price of hamburger (Ph) and fanta (Pf) are both R100. What is Michael's budget constraint? (1) Select one: a. 500 = 100Qh + 100Qf b. 500 = 100PH+ 100PF c. 500 = (Ph)(Qf) d. 500 = (QhXQf).
b,c,d
1. Suppose there are only two goods in the world, apples, and oranges. The price of an apple is Pa=2 and the price of an orange is Po=3. Assume there is an individual with the following utility function u = 2xa + 0.5xo The income available for this individual is (=120 (marginal utility for apples is 4x a and marginal utility for oranges is xo) a. Draw the budget line for this individual. Make sure to label the corner points correctly (the points where the budget line touches the x and y axes). b. What is the slope of the budget line? c. What is the slope of the indifference curve (MRS)? d. Write the intuition behind the MRS (in terms of the substitutability of apples and oranges)
According to the table, what is the consumer equilibrium for a $6 budget if the price of red peppers is $1 and the price of apricots is also $1?