A person has $50/week for transport expenditures for their job.  Uber ride = $10. Subway ride =$2.50. If Uber rides are on the x-axis, what is the slope of the budget constraint? If the marginal utility of a person’s last Uber ride was 30 and the marginal utility of a person’s last subway ride was 5, then how should the person adjust the consumption bundle to maximize utility? A -Increase the number of Uber rides and decrease the number of subway rides B -Decrease the number of Uber rides and increase the number of subway rides C -Remain the same – the consumption bundle is already utility- maximizing D -Change ambiguously – there is not enough information to answer

Q: The graphs shows an individual consumer's supply and demand curves (Sr and Dr, respectively) for a…

A: The utility derived from the additional units consumed is known as marginal utility. The marginal…

Q: Agatha has $825 to spend on tickets for her trip. She intends to spend the entire amount and prefers…

A: The objective of the question is to find out how many miles Agatha will travel by second class given…

Q: Basil is a broke college student who consumes only coffee and pizza. No one is really sure how he…

A: Budget constraint is the aggregate amount of items someone can afford within a current budget.…

Q: Does the income level of a person change their view of substitute goods?

A: Two goods are substitutes of each other if both can be used in place of another. Similar and…

Q: A consumer with the following utility function U = xy2 faces two constraints. The first is the…

A: Consumer theory is important in economics because it investigates how consumers might maximize…

Q: a) What is the utility maximizing choice of food and clothing?  b) How would the utility maximizing…

A: For a consumer the utility function for two goods, food (F) and clothing (C) is given as: U(F, C) =…

Q: Good X costs $8 and good Y costs $4 per unit. His utility function is U = 4.5XY. (a) Calculate Moe's…

A: here we calculate the Moes's utility maximizing purchases of X and Y and constrained utility maximum…

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: Suppose you have the following utility for bananas (b) and cars (c): U=max(b,c). Suppose the price…

A: Walras's law is an economic theory, which states that the existence of excess supply in one market…

Q: What is the axiom of consumer choice that implies that consumers spend all their income in order to…

A: The maximum utility is maximized where the last $ spent on each goods provide exactly same marginal…

Q: Page 4 of 15 3) Suppose I=$1100, Py=$10, Px-$20 and the consumer starts in equilibrium at eo If Px…

A: Approach to solving the question: Detailed explanation:Vertical axis: Price of PXHorizontal axis:…

Q: Gilberto's reservation prices for tubs of hummus are given below. Q (Tubs) 1 2 3 Answer: 4 5 6…

A: The consumer consumes only two goods, and reaches at equilibrium only if they allocate its income on…

Q: Jane has a budget of $15 to spend at the local scientific store. Her two favorite items are beakers…

A: Correct : a) 3 beakers & 3 petri dishes Utility is maximized at MUx/Px = MU/Py and expenditure…

Q: 3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A…

A: Given utility function is form of perfect substitute utility function, perfect substitute goods…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: With a high stress job that oversees the public health of a nation, Tony loves to eat pomegranate…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Jesse has a budget of $16 to spend on either ice cream or cookies at the movie theater. A scoop of…

A: The objective of this question is to find the combination of ice cream and cookies that maximizes…

Q: Suppose the below table shows your demand schedule for CDs. Quantity Demanded Price $10 8 6 4 2 (a)…

A: In the mentioned question we have to calculate total utility , marginal utility and consumer surplus…

Q: Charlie has a utility function U(xA, xB) = xAxB, the price of apples is $1, and the price of bananas…

A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…

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: Refer to the table below. If the subscription price for a sports app is $2 per week, the…

A: Given,The subscription price for a sports app Ps is $2 per week.The subscription price for a game…

Q: There are only two brands of tennis balls Tom purchases: "Wilson" and "Penn." The more he purchases…

A: Here,  correct option is (c) Tom is increase his satisfaction by doing nothing. Because,…