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- Joe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils. Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece. If the price of crackers increases to four cents, Joe should his consumption of crackers and his marginal utility from crackers will and also his consumption of cheese and his marginal utility from cheese will (Assume he is in the downward sloping portion of the MU curve.) Ο Ο Ο decrease; increase; increase; decrease increase; increase; increase; increase increase; decrease; increase; decrease increase; increase; decrease; decreaseBased on the diagram below, a. What is Bart's income? b. What is the price of Good B at point K? c. What is the price of Good B at point L? d. When in equilibrium point K, how much will she spend on Good B? e. When in equilibrium point L, how much will she spent on Good B?The figure below shows multiple equilibria. Which of the following would be true for possible equilibrium points on the figure? E₁ exp Ez E3 OA) Point E₁ is the only possible equilibrium. OB) Points E1 and E3 are only possible equilibria. ●g Point E3 is the only possible equilibrium. OD) Point E₂ is the only possible equilibrium. OE) Points E1 and E2 and E3 are all possible equilibri
- 1. True/False: Partial equilibrium analysis only concerns supply or demand alone, whereas general equilibrium analysis concerns supply and demand simultaneously. 2. True/False: In general equilibrium analysis, an allocation is said to be as a reasonable allocation if each consumer consumes the same bundle its value is no more than the value of the consumer's income. 3. True/False: In general equilibrium analysis, an allocation is said to be as a reasonable allocation if each consumer consumes the same bundle its value is no more than the value of the consumer's income.Indicate whether the statement is True or False, and briefly explain why: A. Marginal benefit equal to marginal cost is the point where consumers are maximizing their satisfaction within their budget. B. The marginal benefit is equal to the marginal utility you obtain from consuming one extra unit of the good. C. What matters for consumers when they want to decide to buy one more unit of a good is how much utility they got from all the units they consumed before. D. Elasticity can be related to the measure of a percentage change in quantity demanded divided by the percentage change in the price of a good.25 Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $9, $3, $2, and $6 and that Ricardo has an income of $71. Column 1 Column 2 Column 3 Column 4 Column 5 Units of Good A Units of Units of Units of MU MU MU MU Good B Good C Good D Number of Dollars Saved MU 1 72 1 24 1 15 1 36 1 5 2 54 2 15 2 12 2 30 2 4 3 45 3 12 3 8 3 24 3 3 4 36 4 9 4 7 4 18 4 2 5 27 5 7 5 5 5 13 5 1 6 18 6 5 6 4 6 7 6 0.50 7 15 7 2 7 3.5 7 4 7 0.25 8 12 8 1 8 3 8 2 8 0.13 Instructions: Enter your answers as a whole number. a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? 4 units of A 3 units of B units of C units of D b. How many dollars will Ricardo choose to save?
- nments: 2022-SU-ECO2023 x apter 7 Problems 1 eBook https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheduca Question 1 - Chapter 7 Problem: X Mc Graw Hill Type here to search Suppose that at three units purchased, marginal utility is $8 and total utility is $30. If the marginal utility of the fourth unit purchased is $6, how much is the total utility of four units? Marginal ultility: $ im o Et Soved Prey 1 of 5 NexThe following table shows the marginal utility per dollar of apples and pears for five consumers: Consumer Marginal Utility Per Dollar Apples Pears Darnell 8 5 Eleanor 7 8 Jacques 6 6 Kyoko 5 4.5 Musashi 4 4 Darnell, Eleanor, and Kyoko are not optimizing over their choice of fruit. In the following table, indicate which fruit each consumer should increase consumption of in order to achieve the optimal fruit consumption bundle. Consumer Apples Pears Darnell Eleanor KyokoIt is a hot day, and Andrew is thirsty. Here is the value he places on a bottle of water: Value of first bottle: $9 Value of second bottle: $7 Value of third bottle: $4 Value of fourth bottle: $1 From this information, complete the following table by deriving Andrew's demand schedule. Quantity Demanded Price More than $9 $7.01 to $9 $4.01 to $7 $1.01 to $4 $1 or fewer Based on Andrew's willingness to pay, plot Andrew's demand curve as a step function on the following graph using blue points (circle symbol) beginning at a quantity of 0 bottles of water.
- How many pieces of sushi and how many bagels did Deborah consume before the price change? pieces of sushi and |bagels At the new prices, how much money would it have cost Deborah to by those same quantities (that is, the quantities that she consumed before the price change)? 24 Given that it used to take Deborah's entire $210 to buy those quantities, how big is the income effect caused by the lower price of bagels? %24 %24Principles of Economics 1 | S1 21/22 Time left 0:5) When the price of one good increases and the price of the other good and income are held constant, the budget line Select one: shifts parallel to the original budget line so that the new budget line is farther from the origin O b. shifts parallel to the original budget line so that the new budget line is closer to the origin rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price O a. O c. O d. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an increase in price Next pageQuestion In the utility function above, x and y are substitutes.The Consumer Maximization Problem is as follows:Max(x;y)=5x + 6y subject to x + 2y = 10, We know MRSxy=5/6, find it by setting U(x, y) = U¯ and solving the utility function for y and what is the price ratio? Full explain this question and text typing work only thanks