Answer the question on the basis of the following marginal utility data for products X and Y. Assume that theprices of X and Y are $4 and $2 respectively and that the consumer's income is $18.MarginalUtility, YUnitsof XMarginalUtility, XUnitsof Y120116216214312312484105658646Refer to the data. What quantities of X and Y should be purchased to maximize utility?2 of X and 1 of Y2 of X and 5 of Y4 of X and 5 of Y2 of X and 6 of Y

Step 1Explanation:to determine the quantities of products X and Y that should be purchased to…

Answered: Answer the question on the basis of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statement is TRUE Group of answer choices As the consumption of a good increases, marginal utility rises, but total utility falls. As the consumption of a good increases, total utility falls and marginal utility falls. As the consumption of a good increases, total utility rises, but marginal utility falls.
Please answer both Thank you
Explain whether the following statement is true, false, or uncertain. A consumer consumes two categories of goods x and y. If an increase in the price of y does not increase the consumer's consumption of x, then this consumer must consider x to be an inferior good.
The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is 20 then the marginal utility of good "b" must be ________ to have an optimum combination of goods purchased. 80 20 60 4
Question 3. Suppose that Janice only cares about tea (T) and coffee (C). Her utility function is U = 2T + 4C. The price of T is $1.50, and the price of C is $2.50. Janice has a budget of $15 for tea or coffee during the week. (a) Write down the consumers maximization problem. (b) What are the consumption quantities of T and C that will maximize Janice's utility?
From the hypothetical data in table 1, provide the following requirements. Table 1. Total Utility & Marginal Utility for Chocolate Bars Quantity (Chocolate Bars) Total Utility Marginal Utility 0 0 1 7 2 11 3 13 4 14 5 14 6 13 Solve the marginal utility column. Show the graphical solution. What does your graph implies?
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.
i) Derive consumer's budget constraint ii) Derive the marginal utility X and marginal utility Y iii) Find out the consumer optimum combination of good X and Y at the market.
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?
A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 15 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should Multiple Choice a. decrease consumption of product X and increase consumption of product Y. b. increase consumption of product X and increase consumption of product Y. c. decrease consumption of product Y and increase consumption of product X. d. stick with the current consumption mix because it yields maximum utility.
5. Julio who consumes two goods Food (F) and clothing (C) has a utility function given by U(F,C)= sqrt(F)C. The price of food is $3 and the price of clothing is $5 and Julio's weekly budget for food and clothing is $100. a. What is Julio's MRSFe (marginal rate of substiution of food for clothing) when utility is maximized? Explain. b. If Julio is at point where MRSFC= 1, where is that point relative to the utility maximzing bundle (show this in a diagram)? c. Can Julio change his bundle so as to increase his satisfaction and if so in what way? Explain fully Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
illustrate diagrammatically how the optimal choice of a consumer changes as a result of a decrease in the consumer’s income, when one of the two goods on offer is a normal good. To complete this activity you must have a clear understanding of how the optimal choice is determined, what happens to the budget constraint as the consumer’s income decreases, and the concept of a normal good.

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