Consider the following indifference curve. The marginal rate of substitution between points C and D is roughly equal to Price (dollars per pizza) $40 30 20 D. 50 Quantity of pizzas per week 100 O 2 O 0.5 O 1.5 O 1
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![Consider the following indifference curve. The marginal rate of
substitution between points C and D is roughly equal to
Price
(dollars
per pizza)
$40
30
20
50
Quantity of
pizzas per week
100
O 2
O 0.5
O 1.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1e052d2-df91-4b61-bf83-32c241d13c5b%2F6aa9df92-f3d6-41ab-a1ce-8cf37645ed69%2F70vth6b_processed.jpeg&w=3840&q=75)
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- Which of the following equations correctly represents solving Q = 140 - 4P for P? O P 35-4Q O P = 140 - Q OP 140 - 4Q OP=35-1Q O P = 140+ Q Plot the relationship between P and Q on the following graph. Note: Price (P) is on the vertical axis and quantity (Q) is on the horizontal axis. PRICE 40 35 30 25 20 15 л 10 ?Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 •D E nts 20 Number of hamburgers per month O Point E is unattainable and Point D is inefficient. O Both point D and E are unattainable. O Point E is inefficient and Point D is unattainable. O Point A is inefficient and Point E is unattainable. « Previous Next Number of hot dogs per monthThe table below represents Sue’s preferences for bottled water and soft drinks, the combination of which yields the same level of utility. Combination of Bottled Water and Soft Drinks Bottled Water per Month Soft Drinks per Month A 5 11 B 10 7 C 15 4 D 20 2 E 25 1 Calculate Sue’s marginal rate of substitution of soft drinks for bottled water at each rate of consumption of water (or soft drinks). Relate the marginal rate of substitution to marginal utility.
- If Porsha view 3 glasses of juice as a perfect substitute for one cup of soda and vice versa, what is her marginal rate of substitution between juice and soda?10. Assume an individual's preferences are represented by the following indifference map and he has an income of S400. Which of the following is shown when the price of Good I is $20 and the price of Good 2 increases from $10 to S16? Note: Even though the price of Good 2 is increasing, the steps to determine the income and substitution effects are the same. 50 45 40 35 30 25 20 15 10 10 15 20 25 30 35 40 45 50 Good 1 Good 2 is a normal good. Good 2 is an inferior good, but not a Giffen good. Good 2 does not satisfy the Law of Demand. • Ignoring the Income Effect, the Substitution Effect will cause the individual to consume more of Good I. A. B. 21 C. 3 None of the above statements are true. D. Good 2Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line. As Leah moves towards her best affordable point, she will move to Select one: A. a higher indifference curve. B. a higher budget line. OC. a lower indifference curve. OD. a tangent point on the same indifference curve. O E. a lower budget line. Clear my choice
- The figure to the right represents the demand for ice cream cones. Which of the following statements is true? O A. Points a and b may not necessarily be the utility - maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods. B. Points a and b are the utility - maximizing quantities of ice cream cones at two different prices of ice cream. O C. Points a and b are derived independently of the utility - maximizing model. O D. Point a could be a utility - maximizing choice if the price is $3 but point b may not be because we have no information on the marginal utility per dollar when price changes. Price $3 1 3 4 Demand Quantity3. Suppose Product X is a normal good and its price (Px) decreases. Graphically illustrate its Substitution and Income Effects using individual's budget and indifference curvesQUESTION 15 Which of the following statements about an indifference curve is true? O a. The slope tells you the ratio of the prices of the two goods O b. It is unique to a specific consumer O c. A producer can use it to judge consumer demand O d. It is always a curve
- Consider the two questions about utility. The table refers to the first question only. Tod loves to travel, and he takes several river cruises per year. The table contains information about the utility Tod gets from the river cruises. Number of river cruises Total utility Marginal utility 0 0 1 12 12 2 20 8 3 25 5 From this information, it can be concluded that the number of river cruises Tod takes is indeterminable without knowing Tod’s income or the price of the cruises. that total utility is maximized when Tod takes one river cruise. that Tod will take two river cruises. that Tod will take three river cruises. Suppose that Jim has $4 to spend on a snack and that the only thing available is tea and scones. Jim’s marginal utility of the first cup of tea is 30 and his marginal utility of the second cup of tea is 20. Each cup of tea costs $1. Jim’s marginal utility of the first scone is 80 and his marginal utility of the second scone is 60. Each scone costs…Reset 9 UTILITY CALCULATIONS TOTAL AND MARGINAL UTILITY Quantity Consumed Marginal Utility Total Utility Total Utility 70 60 50 22 40 22 30 18 20 40 10 14 3 54 2 4. 8. Quantity Consumed 10 Marginal Utility 4 64 20 6. 10 70 1 2 3 4 6. 8. -10 -20 Quantity Consumed Quantity Consumed 2. 3. 6 8. 1. 3.QUESTION 32 The optimal consumption point in an economy with two goods A and B is where: O a. The marginal utility of product A over its price is equal to the marginal utility of product B over its price O b. the marginal rate of substitution of both goods is equal O c. The price of good A is equal to the price of B Od. The marginal utility of product A is equal to the marginal utility of product B
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