According to Chapter 3- History of Economic Thought by Hunt What do subscribers to the utility theory of value mean by the " water-diamond paradox" when discussing Smith's distinction between " value in use" and " value in exchange." ? How does Hunt explain Smith's position?

Q: Let U(X,Y) = VXY . Let I = $100, Px = $10 and Py = $10 be the initial set of prices and income. Now,…

A: Effect on income: The income impact discusses how a change in the price of a good might affect the…

Q: How does utility theory differentiate a “need” from a “want”?

A: Utility alludes to the total fulfillment got from the utilization of a thing or service. As the…

Q: What do you think is more realistic approach between cardinal and ordinal approaches to consumer…

A: Ordinal Utility The Ordinal Utility approach in consumer theory is based on the fact that the…

Q: The first unit of the good that Ying consumes is worth $1 to her. O The 4th unit of the good Som…

A: In order to answer this question, we analyse each of the options separately.

Q: why is the idea that value depends on consumers preferences radical?

A: Consumer preferences can defined as the choices which consumers make depending upon their…

Q: Maude considers roses and tulips to be perfect substitutes. She spends $20 on these flowers…

A: Hi! Thank you for the question, as per the honour code, we are allowed to answer three sub-parts at…

Q: 3. Howard consumes only two goods. An economist has collected the following data on Howard's…

A: Paul Anthony Samuelson, an American economist, introduced the concept of revealed preference in 1938…

Q: Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cottage…

A: Marginal benefit indicates the additional amount of benefit that a consumer receives from consuming…

Q: We have determined that Jenny's satisfaction from eating a Snickers bar is 30 utils, whereas Sarah's…

A: Jenny's satisfaction from Snickers = 30 utils Sarah's satisfaction from Sarah = 15 utils Also, Jenny…