A firm sells two products. Its price for product 1 is $4. If a consumer purchases at least 5 units of the first product, the second product is sold at a discounted price; otherwise, it is sold at a regular price. What can you say about the regular and discounted prices of the second product if a consumer with income 48 could afford bundles (3;6), (5;7), and (6;6), but a consumer with income 42 could not afford any of them? You should explain your reasoning and clearly identify what your final answer is for each of the prices.

Discounted price: It refers to the price that is less as compared to the actual price. The people…

Answered: A firm sells two products. Its price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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48 aces How big would that budget have to be before he would spend a dollar buying a first cup of coffee? Instructions: Enter your answer as a whole number. here to search Suppose that Omar's marginal utility for each additional cup of coffee is 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. O Saved II Help 4 Saw
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products G and H. Units of G 1 2 3 4 5 6 7 MUG 36 33 27 21 18 12 6 Units of H 1 2 3 4 5 6 7 MUH 70 60 55 45 30 25 15 If the consumer has a budget of $40 and the prices of G and H are $3 and $5, respectively, the consumer will maximize their utility by purchasing
Gilberto's reservation prices for tubs of hummus are given below. Q (Tubs) Reservation Price Answer: ($) 1 2 22 IN 3 16 4 14 5 6 at 28 13 11 Gilberto can also consume other foods which give him a constant marginal utility of 8.8 utils and cost $6.2. What is Gilberto's marginal utility from the 4th tub of hummus?
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2.
1. This question will let you examine/explore a more interesting utility func- tion than the simple example discussed in class as there will be both cross-price elas- ticity and an inferior good. Suppose you are told a consumer has the following utility function: U (9219₂) = 9z+√9z+ 9₂ You should assume income is Y, the price of good r is P2, and the price of good z is P₂. This question will ask about several concepts discussed in lecture. (a) What is the Marshallian demand for goods x and z? I.e. find (qq) for both interior solutions and corner solutions. Note: the outcome is "ugly" for the interior section and both corner should include constraints, i.e. limits using Y relative to f(P, P₂). Hint: if solving using MRS = MRT, can use this information again in part (d). (b) Suppose you are told P₂ = $8 and P₂ = $1. Create a graph showing the Income Consumption Curve (ICC) for Y = {$12.25, $35, $49, $70, $98). Be sure to clearly label the graph. Based on the ICC, which of the goods is…
TUA TUB 0. 176 117 2 330 225 4. 616 387 726 432 7 924 486 8. 979 495 Find the mix of product A andB that maximize your Utility based on the following utility table ,if you have to pay $ 11 for each unit of product A, and $9 for each unit of Product B, hence you have $ 133 to spend on these two products.
18
Could you just do part c and explain.
12) A consumer’s preferences are given by U(X,Y) = X0.6Y0.4. The price of X is 4, and the price of Y is 5. The consumer has an income of $2000.a) What is the utility maximizing choice of X and Y?b) How would the utility maximizing choice change if price of X falls to 3 because of a pricesubsidy?c) Given the answers to the previous parts plot a linear demand function for X.d) Show that the consumer would prefer the cash equivalent of the price subsidy in part b.
What is the total utility at 4 units and the marginal utility when Jenna goes from consuming three units to four units pears? Quantity Marginal Utility 1 35 2 25 3 15 4 10 5 0 6 -5 Group of answer choices Total utility = 85 ; Marginal Utility = 10 Total utility = 85 ; Marginal Utility = 15 Total utility = 75 ; Marginal Utility = 10
The table shows the total utility data for products S and T. Assume that the prices of S and T are $3 and $5, respectively, and that consumer income is $22. Total Utility 12 27 39 48 51 Units of S 1 2 3 4 5 Multiple Choice If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of T increases from 2 to 4. Units of T 1 2 3 4 5 Total Utility 20 35 45 50 52 decreases from 4 to 3. stays the same at 2, but the consumer has $1 remaining. increases from 2 to 3, but the consumer has $1 remaining.

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