does a change in tastes lead to a shift in the suppyly curve?why or why not ?

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: What is the difference between good x as a function of price and income and good x as a function of…

A: Factors affecting demand are demand determinants. Price (P) , income(Y) , utility (U), taste and…

Q: What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of…

A: Utility shows the satisfaction.  MU is the marginal utility.  MU is calculated as the change in…

Q: The table below demonstrates the total utility Terrence derives from eating different quantities of…

A: Total utility is the total satisfaction that a consumer gets on consuming a good or service, whereas…

Q: Explain why it is that as the consumer purchases more of a good, her marginal utility falls while…

A: Utility: - Utility is the satisfaction derived by any consumer by consuming a good or service.

Q: What do you mean by the inverse relationship between the quantity demanded for a commodity and its…

A: Inverse relationship between quantity demanded of a commodity and the price implies that as the…

Q: Think of some other goods for which your preferences might be concave.

A: Concavity of the IC symbolizes that the MRS(marginal rate of substitution) of good X for Y rises…

Q: If something has negative marginal utility, what happens to your total utilitywhen you consume it?

A: Marginal utility is defined as the utility gains after one more extra unit of consumption. It means…

Q: Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four Lean Cuisine Meals…

A: A budget constraint is a fundamental concept in economics that represents the limitations imposed on…

Q: How does utility theory differentiate a “need” from a “want”?

A: Utility alludes to the total fulfillment got from the utilization of a thing or service. As the…

Q: Would you expect marginal utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the change in the total utility when a person consumes an additional unit of a…

Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: Marginal utility refers to the additional satisfaction or usefulness that a consumer derives from…

Q: What is the difference between the income effect and the substitution effect of aprice increase for…

A: Income effect shows the impact increase in the purchasing power on consumption, whereas substitution…

Q: Explain three assumptions about the properties of consumers’ preferences.

A: Consumer preferences are defined as the tastes of people which is measured through utility. Consumer…

Q: Joann divides her consumption between books and games. Both books and games are normal goods for…

A: The income effect refers to the change in the consumption of a commodity for the customers on the…

Q: In the following graph the price of Y is $15. What does the curve in the second graph show? Y 40…

A: The budget constraint is the graphical representation of the relationship between bundles of…

Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: The approach proposed in the question is based on consumer theory, namely the Law of Demand and the…

Q: When there is a change in price, there is an income effect and a substitution effect. Which is…

A: The income effect is that the change within the consumption of products by consumers supported their…

Q: why does a substitution between goods cause a negative slope on a demand curve?

A: The demand curve is a graphical representation of the demand schedule which indicates the different…

Q: how do I illustrate an increase in a price of an item resulting in consumers buying another item

A: Law of demand says the more of goods is purchased at low price and vice versa keeping other factors…

Q: What happens to the price of peaches if consumer income declines?

A: The normal good refers to the good whose demand is positively connected to the level of income.…

Q: Please derive mathematically the condition for consumer equilibrium then give a short intuitive on…

A: The phrase "consumer equilibrium" refers to a state in which a consumer gets maximum satisfaction…

Q: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

Q: why does a decrease in income cause an increase in both equilibrum price and quanity of an inferior…

A: A market is a place where the buyers and sellers interacts with each other and the exchange of goods…

Q: Elaborate all possible effects of change in income and price to the equilibrium of consumer.

A: The equilibrium in the market is determined where demand is equal to supply. It means the quantity…

Q: Refer to the graph below: Quantity of Y 160 A B 11 200 X Quantity of X Why doesn't the consumer…

A: Consumer theory is important in economics because it examines how customers maximize satisfaction…

Q: Consider two different pairs of goods: a. Sunscreen and bug spray b. Hot dogs and hamburgers Which…

A: Goods are tangible items that exist in an economy and can be sold or purchased for a certain amount…

Q: Which of the following will cause a movement when looking at an individual’s demand curve?…

A: While a change in price causes a movement along the existing demand curve, a change in non-price…

Q: Given the market price of a good, how does a consumer decide as to how many units of that good to…

A: First we need to understand what is marginal utility. Marginal Utility - It is the additional…

Q: Will an increase in the price of a complementary good outwardly shift the demand curve?

A: Complementary Goods:- Complementary goods are those goods whose demand decreases when price of other…

Q: What happens to consumption of a normal good when its price increases?

A: Normal goods are those whose demand increments as individuals' purchasing power and incomes rises.…

Q: Explain using words and graphs where an individual demand curve is derived(where do they come from)?

A: Demand curve is a downward sloping linear curve showing the relationship between the price of a good…

Q: On the following graph, use the purple points (diamonds symbol) to plot Kenji's total utility (TU)…

A: Total utility is the general satisfaction that a consumer gets from the consumption of specific…

Q: Who determines how much utility an individual will receive from consuming a good?

A: The demand refers to the total amount of a good which an individual is willing, and able to buy at…

Q: How can else  increase marginal utility and therefore the consumer demand curve?

A: marginal utility is the additional fulfillment a purchaser gets from having another unit of a decent…