An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells us that utility is: objective the same for everyone unchanging subjective

Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…

A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…

Q: What is the law of diminishing utility? Please explain with a few examples.

A: Law of diminishing marginal utility says that as we consume more and more units of same good then…

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: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: Marginal utility refers to the additional satisfaction or usefulness that a consumer derives from…

Q: Explain the phrase “Less is more” in terms of Utility and cite 2 examples in your answer.

A: The utility is the consumer wants satisfying power of the goods or services.  Marginal utility is…

Q: Use the principle of rational choice to determine which one to choose: a) Paying for Squid Game from…

A: Rational choice theory refers to the theory that individuals depend on rational calculations to make…

Q: How do indifference curves represent the consumer's preferences?

A: The indifference curve is a mathematical representation of the combination of all the consumption…

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: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: Based on the table below, what is the marginal utility from the 2nd unit? UNITS TOTAL UTILITY 1…

A: Marginal utility =change in the total utility from that unit of consumption  Marginal utility from…

Q: Kyle is going shopping. For Kyle, the marginal utility of bow ties is greater than the marginal…

A: The term marginal utility can be defined as the additional benefit that a consumer would get by…

Q: The following table shows Madison's utility from consuming popcorn and Coke. Suppose that Madison…

A: Utility refers to the satisfaction or pleasure derived from consuming goods and services.Marginal…

Q: Kirk enjoys going to ballparks and watching baseball. Last week, Kirk paid $40 to purchase a ticket…

A: People buy goods and services because of their ability to satisfy human want. That property of a…

Q: Let's assume that Justin Trudeau, who lives in Ottawa, is purchasing corn (C) and dandelion (D) in…

A: The utility is maximum when both goods are purchased at equal marginal utility per dollar.

Q: In which of the following cases would we expect a person to experlence no net change In their…

A: By the term behavioral economics, economists mean that; generally individuals take the decision that…

Q: What are the 4 basic assumption of individual preferences?

A: Preferences of consumers are well defined because these are measured by the satisfying power of good…

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: Another instance when people are likely not to spend a dime (or a minute) on an item is when they…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…