Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products G and H. Units of G 1 2 3 4 5 6 7 MUG 36 33 27 21 18 12 6 Units of H 1 2 3 4 5 6 7 MUH 70 60 55 45 30 25 15 If the consumer has a budget of $40 and the prices of G and H are $3 and $5, respectively, the consumer will maximize their utility by purchasing

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products G and H. Units of G 1 2 3 4 5 6 7 MUG 36 33 27 21 18 12 6 Units of H 1 2 3 4 5 6 7 MUH 70 60 55 45 30 25 15 If the consumer has a budget of $40 and the prices of G and H are $3 and $5, respectively, the consumer will maximize their utility by purchasing

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

For each of the following utility functions get the marginal utility of consumption of each of the goods. 1/2 1/2 (a) u(a,b) = a b (b) u(x, y) = x³/4y1/4 (c) u(a, b) = n(a) + In(x) (d) u(x, y) = ln(x) + ln(y) (e) u(a, b) = 2xa +Xb
Hand written solutions are strictly prohibited
Q1. Assume you are given $20 a week to spend only on your favorite choices of drinks. You have two favorite drinks: Di costs $2 and D2 costs $4. Your utility from the purchase of your drinks is U(D₁) and U(D2). The values of utilities are given below - D₁ 0 1 2 3 4 5 U(D₁) 0 12 20 26 30 32 D₂ 0 1 3 U(D₂) 0 2 3 32 5 20 40 444 46 X is the number of D1 and Y is the number of D2 you purchase in a week. a) What combination of X and Y would make you a utility maximizer? b) If you are not maximizing your utility, how should you reallocate your allowance? Explain.
A consumer is choosing between magazines and books. His set of consumer optimums are shown on the graph to the right. 50 Consumer income allocated for these two goods is equal to $150. The price of 45 magazines (P,) is equal to $5.00. 40- How do these changes in the price of books affect the demand for magazines? 35- 30- 25 NN 20- demand remains constant 15- PCC demand increases 10- 5- demand decreases 0- Ó 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Books étv 21 MacBook Air 80 DII F5 F6 F7 F8 F9 F10 F1 F2 F3 ! @ $ & * 1 2 3 4 6. 7 Q W E T U A S F H. J K L C V M option command command op ...- * C0 Magazines D
Consumer satisfaction from consuming goods X and Y is as follows:U=10X+14Y-X2-Y2 and consumer income 3X+Y=12Look for:1. The marginal utility function for goods X and Y?2. What are the values of X and Y for maximum utility?3. Prove with the results of X and Y obtained whether optimal customer satisfaction is achieved?
Units of A Units of B 16 6 12 8 8 4 12 24 Assuming that the prices of A and B are $1.50 and $1, respectively, and that Mr. Chen has $24 to spend, plot his budget line and identify the optimal combination of goods A and B that he will purchase. Instructions: (1) Use the tool provided 'Budget' to draw a budget line. Plot only the endpoints such that the first point touches the vertical axis and the last point touches the horizontal axis. (2) Use the tool provided 'Optimum' to locate Mr. Chen's optimal combination of the two goods. Mr. Chen's Preferences and Budget Good A 3222228642086+2 18 16 14 12 10 Goods A and B IC 3 IC 2 IC 1 0 Good B 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Tools / --i Budget Optimum
According to the table, what is the consumer equilibrium for a $6 budget if the price of red peppers is $1 and the price of apricots is also $1?
Quantity X TUX MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 2 B 72 3 185 50 3. 234 66 4 230 45 A 4 294 60 5 270 C 5 348 54 1. Calculate the Total Utility for good Y when the quantity is equal to 2. (B=) * 96 172 168 O 112 2. Calculate the Marginal Utility for good X when the quantity is equal to 5. (C=) *
2
Question 16 The following graph illustrates Tom's preferences for pizza slices and tacos in a given week: Figure 3-1 Quantity of Pizza Slices 20 10 18 17 16- 10 12 14 16 18 20 Quantity ofTacos Refer to Figure 3-1. Assume that Tom has an income of $100 per week, the price of a slice of pizza is $5, and the price of a taco is also $5. If Tom optimizes his purchases, he will choose to purchase which bundle of pizza slices and tacos? (Hint, consider which budget constraint Tom is on.) O A OB OC O O 111111000 14 IGN=
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products G and H. Units of G MUG Units of H MUH 1 36 1 70 2 33 2 60 3 27 3 55 4 21 4 45 5 18 5 30 6 12 6 25 7 6 7 15 If the consumer has a budget of $29 and the prices of G and H are $3 and $5, respectively, the consumer will maximize their utility by purchasing Multiple Choice 3 units of G and 4 units of H. 4 units of G and 2 units of H. 1 units of G and 5 units of H. 2 units of G and 5 units of H.
Please see attachment and type out the correct step by step correct answer with proper explanation of it.within 40/50minutes.Will give upvote only for the correct answer.thank you.