Course dashboardSoru 5Answer the following question according to the information given below:HenüzSuppose that Ayşe allocates all her income on food and shelter. The price of food is 2 TL andcevaplanmadıthe price of shelter is 4 TL per unit. Suppose further that the following equations represent themarginal utilities of food and shelter, respectively.4 üzerinden13işaretlenmişMUF = 24 - 2F19P Soruyu işaretleMUS = 80 – 8S25where F and S represent the quantity of food and shelter consumed, respectively and MUF andMUs are measured in million utils. Also, Ayşe's income is 48 TL.UyHow many units of shelter should she purchase to maximize her total satisfaction?KalLütfen birini seçin:O A. 20O B.7O C 12O D. 16O E 8SONRAKİ SAYFAÖNCEKİ SAYFA

A rational individual who always aims to maximize her utility from the consumption of two…

Answer the following question according to the information given below: Suppose that Ayşe allocates all her income on food and shelter. The price of food is 2 TL and the price of shelter is 4 TL per unit. Suppose further that the following equations represent the marginal utilities of food and shelter, respectively. MUF = 24 - 2F MUS = 80 – 8S where F and S represent the quantity of food and shelter consumed, respectively and MUF and MUs are measured in million utils. Also, Ayşe's income is 48 TL. How many units of shelter should she purchase to maximize her total satisfaction?

Answer the following question according to the information given below: Suppose that Ayşe allocates all her income on food and shelter. The price of food is 2 TL and the price of shelter is 4 TL per unit. Suppose further that the following equations represent the marginal utilities of food and shelter, respectively. MUF = 24 - 2F MUS = 80 – 8S where F and S represent the quantity of food and shelter consumed, respectively and MUF and MUs are measured in million utils. Also, Ayşe's income is 48 TL. How many units of shelter should she purchase to maximize her total satisfaction?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A consumer has a budget set aside for entertainment during the year, and they spend the budget on concerts and plays. The consumer has a strong preference for attending concerts over plays: the two activities are substitutes, but not very strong substitutes. Sketch the indifference curves for this consumer on a graph, with concert tickets on the vertical axis and play tickets on the horizontal axis. Briefly explain why the consumer might ultimately choose to purchase a large number of play tickets, even though they have a strong preference for concerts. Include a budget line on your graph to illustrate this case.
Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these are the only two items that provide her utility. Furthermore, Mrs. Griffiths insists that for every dress she buys, she must also buy a handbag. What is the algebraic equation for Mrs. Griffiths budget constraint if dresses cost $25 each and handbags cost $14 each? How many of each good will she buy and represent this on a budget line with handbags on the horizontal axis Draw an indifference curve showing the optimum choice. Label the optimum as point A. What would be the marginal rate of substitution at the point that corresponds to the optimal consumption choice? Interpret the marginal rate of substitution
Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume that food consumption is measured along the horizontal axis and the consumption of movies is measured on the vertical axis. Calculate the slope of Alex's budget line when the price of food increases to $20 while the price of movie remains unchanged. -2/3 - 1.5 -2 -3/4
Consider the market for Netflix Subscriptions. Show graphically and explain using economic intuition, what happens to the market price and quantity in each of the following 3. Bruno can spend his income on two different goods: smoothies and energy bars. For each of the following three situations, decide if the given consumption bundle is within Bruno’s consumption possibilities. Then decide if it lies on the budget line or not. a) Smoothies cost $2 each, and energy bars cost $3 each. Bruno has income of $60. He is considering a consumption bundle containing 15 smoothies and 10 energy bars.b) Smoothies cost $2 each, and energy bars cost $5 each. Bruno has income of $110. He is considering a consumption bundle containing 20 smoothies and 10 energy bars. c) Smoothies cost $3 each, and energy bars cost $10 each. Bruno has income of $50. He is considering a consumption bundle containing 10 smoothies and 3 energy bars. 4. In each of the following situations, describe the substitution…
please help
Mrs. Rochester earns $4500 a week and spends her entire income on computers andpastries, since these are the only two items that provide her utility. Furthermore, Mrs.Rochester insists that for every computer she buys, she must also buy a pastry.e) Assume for this question only that when the price of computers decreases, less ofthat good is demanded. Illustrate the income and substitution effect of this pricedecrease.
Suppose Rosie's marginal utility from attending her 5th Atlanta Braves game was 40 and the marginal utility from attending her 1st Taylor Swift concert was 200. Assume that the price of a Braves ticket is $20 and the price of a Taylor Swift ticket is $120. Which of the following would be TRUE? 1) Rosie would attend more Taylor Swift concerts and fewer Braves games. 2) Rosie would attend more Braves games and fewer Taylor Swift concerts. 3) Rosie would not alter her behavior. 4) Rosie would attend less of both Braves games and Taylor Swift concerts.
Suppose Jeff has a perfect substitute preferences for watching movies (M) and TV (T) shows. Jeff's MRSTM is such that he is always indifferent between watching one movie and five TV shows independent of the amount of goods consumed. Which of the following statements is true? If Jeff had a choice between 1 movie and 1 TV show before bed, he would choose to watch the movie. If Jeff has already watched 3 movies and no TV shows, then he would prefer to watch a TV show next. He is indifferent between watching 1 TV show or 1 movie before bed. Jeff would prefer watching 2 TV shows and no movies over watching 2 Movies and no TV shows.
Elizabeth makes $200 a week at het summer job and spends her entire weekly income on new running shoes and jeans, since these are only two items that provide utility to her. Furthermore,Elizabeth insists that for every pair of jeans she buys, she must also buy a pair of shoes. (without the shoes, the new jeans are worthless). Therefore, she buys the same number of pairs of shoes and jeans in any given week. a) If jeans cost $20 and shoes cost $20 , how many will Elizabeth buy of each?b) Suppose that the price of jeans rises to $30a pair , how many shoes and jeans will she buy?c) To what effect (income or substitution) do you attribute the change in utility levels between part a and part b
A consumer is choosing between magazines and books. His set of čonsumer optimums are shown on the graph to the right. 50 Consumer income allocated for these two goods is equal to $150. The price of magazines (P,) is equal to $5.00. 45- 40 How do these changes in the price of books affect the demand for magazines? 35 demand remains constant 30- We can consider books and magazines to be goods. 25- 20- 15- PCC substitute 10- 5- complementary 0- O 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 unrelated Books O étv 21 MacBook Air DII 80 F10 F11 F7 FB F9 F6 F4 F5 F3 F1 F2 * @ # $ 7 8 9 1 2 4 P T Y Q W J K S F く Z C V command oF option command O 回 .. - つエ B ** A.
Use the following table showing the marginal utility schedules for product X and product Y for an individual consumer. The price of product X is $4, and the price of product Y is $2. The income this consumer can allocate to purchase these two items i. PRODUCT X PRODUCT Y Quantity Marginal Utility x Quantity Marginal Utility y 1 32 1 24 2 28 2 20 3 24 3 16 4 20 4 12 5 16 5 8 When the consumer purchases their utility-maximizing combination of products X and Y what will be the total utility they will realize form their expenditure of their $20 income?