A consumer's budget constraint is given by 500 = 40G + 10D, where G is ice cream in liters and D is drink in liters. The consumer thinks that a liter of ice cream is a perfect substitute for 3 liters of drink. Which statements are then correct? Select one or more options: a-2 liters of ice cream and 42 liters of drink are on the budget line b-The optimal choice is to consume 3 times as much drink as ice cream c-The optimal choice is to only consume ice cream d-0 liters of ice cream and 50 liters of drink are on the budget line

Q: Assume Pat spends all of her allowance to purchase 4 apples and 4 candy bars. Pat's marginal utility…

A: Pat spends all of her allowance to purchase 4 apples and 4 candy bars. Pat's marginal utility of the…

Q: Jo buys muffins and cupcakes at a bakery. Jo’s weekly budget for baked goods is $70. The price of…

A: The budget equation measures the amount of two goods that a consumer can purchase given the prices…

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the…

A: The price of pizza is $2.00 The price of soda is $2.00

Q: On the diagram to the right is plotted a single bundle of 2 books and 3 DVDS consumed per month.…

A: In the question above, it is given a plotted diagram of a single bundle of 2 books and 3 DVDs…

Q: Jerry spends his entire budget on bread and gasoline. His preferences are complete, transitive,…

A: Substitution Effect: This refers to the change in quantity demanded of a good or service as a result…

Q: 2. Tom spends all his $100 weekly income on two goods, apples and bananas. His utility function is…

A: Utility maximization problem : With the given prices and the income, a consumer chooses his…

Q: True/False Marginal utility keeps falling with the each additional consumption of a good or…

A: Economists uses the concept of marginal utility to determine how much of a product consumers are…

Q: 1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is…

A: Marginal utility is the additional fulfillment a shopper gets from having another unit of a decent…

Q: Quantity of D 10+ 8 6 4 2 02 4 6 8 10 Quantity of C Refer to the budget line shown in the diagram.…

A: The budget constraint represents all the combinations of the goods and services that the consumer…

Q: With diminishing marginal utility, how do consumers decide how much to consume? Students are…

A: A utility is the satisfaction derived from the consumption of goods and services . Utility is…

Q: Consumer choice Jo buys muffins and cupcakes at a bakery. Jo’s weekly budget for baked goods is $70.…

A: The combination of goods that a consumer can buy from his given income or wealth is known as a…

Q: 5. Maximizing Utility when Purchasing Two Goods A consumer has an income of $24. The only two goods…

A: Marginal utility is the willingness of a consumer to pay for an extra unit of a good. The consumer…

Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…

A: An indifference curve is a graphic representation of a collection of products that give consumers…

Q: a. What combination of A and B will Mr. Chen purchase? A = units units B = b. Does your answer meet…

A: In case of two goods, let's say good A and good B. Consumer maximizes utility at the following…

Q: 2a) Sompa's utility function for strawberries and grapes is given by U (S, G) =10S?G. Where S…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: 2. Calculate the Marginal Utility for good X when the quantity is equal to 5. (C=) * 60 90 40 53

A: Marginal utility for good X (MUX) is the addition to the total utility (TUX) when the quantity (Q)…

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

A: Given,  U= 0.5xy2

Q: 7. Bob receives utility from days spent traveling on vacation domestically (D) and days spent…

A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…

Q: Mario consumes two goods: cars and motorbikes. An increase in the price of cars while holding income…

A: (A) increase the marginal utility provided by cars. Option "A" is correct. Marginal utility refers…

Q: Quantity of C Refer to the budget line shown in the diagram. Which of the following combinations of…

A: The budget constraint represents all the combinations of the goods and services that the consumer…

Q: 3) Suppose Joe's utility for lobster (L) and soda (S) can be represented as U = = L0.5 s MU =0,5…

A: The utility function is a concept in economics that assesses a consumer's welfare or satisfaction as…

Q: Hanan consumes two fruits: bananas (B) and apples (A). She has decided that her monthly budget for…

A: equation of budget constraint  B*pB + A*pA = income and intercepts are determined dividing income…

Q: A consumer is making purchases of products Alpha and Beta such that the marginal utility of product…

A: The Equilibrium condition for utility maximization: MUa/Pa = MUb/Pb The marginal utilities per…

Q: 6. Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U=…

A: Given Information: Consumer's Income (M) = $360 Price of X = $3 Price of Y = $2 Utility Function =…

Q: EXERCISE 3 If Joe decides to allocate his entire weekly allowance between energy drinks and coffee,…

A: The budget line is a graphical delineation of all potential blends of the two commodities that can…

Q: Question 7 A consumer has a utility function 100-(x₁-4)4 -(x2-3)4 and a budget constraint of 9x1+3x2…

A: In this case, we have to calculate utility function and amount of good 2 and for this we have to use…

Q: Total utility diminished as the quantity of a good increases increases as long as more goods are…

A: Total utility refers to the overall satisfaction obtained by an individual from the consumption of a…

Q: Explain the relationship between the budget constraint and indifference curve at consumer optimum

A: A budget line represents the configurations of two goods that a buyer can consume provided a budget…

Q: 1..Calculate the optimal quantity of each of two goods (x and y) and the consumers’ total utility…

A:

Q: How can one's choice of purchases/consumption be infuenced by utility or marginal utility?

A: Consumer choice is a basic of consumer choice theory. Which explains what will a consumer demand or…

Q: Would you expect total utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the additional satisfaction that is obtained from consuming one more unit of the…

Q: Leyla consumes goods X and Y. The price of good X is Px and the price of good Y is Py, Leyla’s…

A: Budget constraint refers to the different combinations of two goods that a consumer can consume with…

Q: the next 6 hours of her free time. She could choose Aisha is considering how to allo between leisure…

A: Consumer A can allocate her time between leisure (L) and to do house chores. Consumer A has 6 hours…