a. List and briefly explain the main assumptions we make on consumer preferences (one sentence of explanation for each). b. For each assumption, provide an example consumer preference that does not satisfy the assumption (you may illustrate your answers by drawing graphs).

Q: Explain and differentiate preference and utility.

A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…

Q: Complete the following table and answer the questions below: a. At which rate is total utility…

A: Total utility (TU) is the sum total of all utilities which a rational consumer derives by consuming…

Q: You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the…

A: Units of X MUX Units of Y MUY MUX/Price of X MUY/Price of Y Total utility of X Total utility of Y…

Q: Imagine you have a movie streaming platform that offers new movies at the time of release. Your…

A: Marginal utility is the additional utility derived from consuming an additional unit of the good.

Q: Fill in the two missing cells of the table. Total Utility Marginal Utility (Utils per round) Golf…

A: TU = MU2 + MU1 = 35 + 30 = 65 MU = TU2 – TU1

Q: Explain the Marginal Utility Concept with example?

A: Utility:Utility is the want satisfying power of a commodity. The utility is a tool to measure the…

Q: Which of the following choices best explains how marginal utility causes the average person to eat…

A: Marginal utility describes the extra benefit obtained from consuming one more item of a product. It…

Q: What is the difference between a positive and anormative statement? Give an example of each.

A: Economic policies are a combination of positive and normative statements. A normative statement…

Q: Suppose that you are thinking about joining COSTCO. You must pay a membership fee, but once you…

A: Suppose You consume toilet paper (X) and other goods (Y). Assume that price of Y is 1. Membership…

Q: The budget set, or budget constraint, in the graph shows the possible combinations of brownies and…

A: Budget line shows graphically the possible combinations of two goods which a consumer can purchase…

Q: Marginal Utility of Coffee (for (dollars per cup) 1st cup) Price of Orange Marginal Utility Juice…

A: a) Given, Price of Coffee = $3 Price of orange = $2 Marginal utility of 1st cup of coffee = 60…

Q: et us consider the case of Saiful who derives positive marginal utility from consuming apples. In…

A: Total utility refers to the total amount of satisfaction or fulfilment gained by a consumer as a…

Q: A consumer buys Bread (B) and Milk (M) each week at price of 20 and 16 respectively. Suppose that…

A: According to question, given that Price of bread is 20 and the price of milk is 16 respectively,…

Q: Candy Chocolate Candy Total Utility (utils) 0 27 Bars 0 1 2 3 4 5 6 60 76 Marginal Utility (utils)…

A: Total utility is the total satisfaction a consumer is getting from consumption of  a…

Q: The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda…

A: We have giver marginal utility table of Pizza and soda, The price of mini pizza =1 and the price of…

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

Q: Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis.…

A: A budget constraint refers to the shows the various combinations of two commodities that can be…

Q: For the Cobb-Douglas utility function    the optimal choice of good i is independent of the price…

A: To check whether the statement is true or false, we will solve the utility maximization problem…

Q: Suppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has $90 to…

A: U=MIN(X, 2Y)M=$90Py=1

Q: If the price of restaurant meals is overall higher in big cities then you might expect young people…

A: Yes, people do show their preferences where they choose to live.

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…

A: Consumer will maximise utility at a point where marginal utility per dollar for two goods are equal.…

Q: explain how utility analysis leads to the law of demand.

A: Demand is a economic rule alluding to a buyer's wants for a specific item or administration. Utility…

Q: Question 1 (Choice). Emie has two cell phones and obtains positive utility from talking on both. His…

A: Budget constraints shows the relationship between the two goods, their prices and the income of…

Q: ACcoralng to the law of diminishing marginal utility, marginal utility of a good declines as more of…

A: Law of diminishing marginal utility says that as more and more units of a good is consumed then…

Q: How does a consumer decide what combination of products to buy using the marginal utility concept

A: The concept of marginal utility studies increase in satisfaction that a consumer gets from consuming…

Q: Rubyhas just finished her economics exam and must decide whether to spend two hours going to the…

A: Given the marginal utility of beauty parlor = 36 utils Marginal utility from pizza = 24 utils…

Q: Explain how consumer equilibrium is reached using marginal utility analysis.

A: Utility refers to the power of a good to satisfy the wants of the people. Marginal utility refers to…

Q: Which of the following statement is TRUE Group of answer choices As the consumption of a good…

A: The objective of the question is to identify the correct statement about the relationship between…

Q: (d) Answer the following questions by describing the budget curv and indifferent to determine…

A: Optimal consumer choice is the bundle of commodities that provide the consumers with an optimal…

Q: If we have the utility function, U(x)=(x−7)^2, and we know that there is an indifference set around…

A: The utility function estimates the government assistance or fulfillment of a shopper as a function…

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: Suppose utility can be measured by "utils" and that Jim buys both coffee and bagels. The price of…

A: Marginal utility refers to additional utility gained from consuming an additional unit of the good.

Q: From the hypothetical data in table 1, provide the following requirements.  Table 1. Total Utility…

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.