Assignment (1) Compatibility Mode. Saved to this PC ✓ esign Layout References Mailings Review View ons: On Problem 1 7 Problem 2 O Search (Alt+Q) Mario consumes only cheese and crackers. a. Could cheese and crackers both be inferior goods for Mario? Explain. Help Accessibility: Unavailable ▬▬▬ b. Suppose the cheese is a normal good for Mario while crackers are an inferior good. If Mario's income falls, what happens to Mario's consumption of crackers? What happens to his consumption of cheese? Explain. monica fa What is marginal rate of substitution (MRS) in Economics? Use an example to explain MRS. 2. D Foo

Assignment (1) Compatibility Mode. Saved to this PC ✓ esign Layout References Mailings Review View ons: On Problem 1 7 Problem 2 O Search (Alt+Q) Mario consumes only cheese and crackers. a. Could cheese and crackers both be inferior goods for Mario? Explain. Help Accessibility: Unavailable ▬▬▬ b. Suppose the cheese is a normal good for Mario while crackers are an inferior good. If Mario's income falls, what happens to Mario's consumption of crackers? What happens to his consumption of cheese? Explain. monica fa What is marginal rate of substitution (MRS) in Economics? Use an example to explain MRS. 2. D Foo

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Diminishing marginal utility occurs because: Wählen Sie eine Antwort: The more you have, the less total satisfaction you get, up to the point where your satisfaction begins to increase again You become addicted to the product You like the product the more you have it You get tired of the product x
through 6. Elapsed time (in minutes) 30 60 90 120 150 Total utility of playing video games 20 45 63 78 83 Answer here 1 Total utility of swimming 40 22666 72 76 76 Jenny spends an average of $3 each hour she plays video games. What is her marginal utility per dollar for the second half hour?
Suppose the marginal utiliy of a Coke is 15 utils and the price is $1. The marginal utility of a pizza is 20 utils and its price is $2. If you buy 1 unit each will you achieve consumer equilibrium? If not how can greater total equilibrium be obtained?
10) Figure 1 shows some indifference curves and budget lines for consumer Yusuf. Milk A B Cheese Figure 1 If Yusuf's income increases, his optimal consumption changes from point A to point B. Which of the following statements is true for Yusuf? (a) Cheese and milk are substitutes. (b) Cheese is an inferior good. (c) Milk is an inferior good . (d) Milk is a normal good. (e) None of the above.
4.An individual consumes products X and Y and spends $30 per time period. The prices of the two goods are $3 per unit for X and $3 per unit for Y. The consumer in this case has a utility function expressed as: U(X.Y) = 0.5XY How much X should this individual consume, given that he is maximizing the utility? ( A) 4.17 ( B) 5 (C)6 D) 6.25
You have 6 hours to study for 2 exams tomorrow. The relationship between the time studying and test scores is shown below. Economics Psychology Hours 0 1 2 3 134 4 5 6 Score 55 3 70 70 63 76 81 85 88 Hours 0 1 2 3 4 5 6 Score 55 16 70 73 75 75 66 76 a. Use the rule for determining optimal purchases to decide how many hours you should study each subject. Treat each point on an exam like 1 unit of utility and assume you are equally interested in doing well in economics and psychology. You should study economics for hours and psychology for hours.
The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the following table. Income $ 5,000 6,000 A 70 64 Quantity Consumed B 35 42 C 10 16 D 20 12 Which product(s) listed is(are) an example of an normal good?
Refer to the graph below Quantity of Y 160 0 Multiple Choice The consumer's income is $1,000 Why doesn't the consumer choose the combination at point B O Quantity of X 200 O The marginal utility of Y exceeds the marginal uplity of X O The consumer is willing to give up more X for an additional unit of Y than must be given up given the relative prices of X and Y. The marginal utility per dollar spent on X exceeds the marginal utility per dollar spent on Y The consumer is willing to give up more Y for an additional unt of X than must be given up given the relative prices of X and Y
A consumer's weekly income is $5000, the price of a cell phone is $1250, and the price of a watch is $500. What quantity of cell phones and watches will maximize the consumer's utility if they spend their entire weekly income on cell phones and watches? Explain your using I. answer marginal Suppose that this consumer's income elasticity for watches is analysis. 5.4. what does this indicate about watches? If the cross-elasticity calculates to 0.8 what does this indicate about the relationship between watches and cell phones?
Calculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places) The Price of wine is 4 The Price of Cheese is 0.58 The Consumer's budget for wine and Cheese is 14.91 GLASSES (WINE) (WINE) WEDGES (CHEESE) TOTAL UTILITY OF WINE TOTAL UTILITY (WINE) MARGINAL UTILITY/dollar MARGINAL UTILITY OF CHEESE 1 60 15 Number Number 144 2 45 55 Number 199 56 Number Number 4 252 65 51 Number 5 303 73 The Quantity of Wine this consumer would buy to maximize utility is: Number The Quantity of Cheese this consumer would buy to maximize utility is: Number What is the consumer's Total Utility when optimized: Number 2 3 3 A 5 (CHEESE) MARGINAL UTILITY Number 11 Number 8 (CHEESE) MARGINAL UTILITY/dollar Number Number Number Number
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*Calculate the marginal utility per dollar of going from eight to nine DVDs. * To increase total utility without increasing spending, should Skeeter change the amount of consumption of either good? No, Skeeter is already consuming at the optimal consumption bundle. Yes, Skeeter should choose more smoothies and fewer DVDs. Yes, Skeeter should choose fewer smoothies and more DVDs. Yes, Skeeter should choose more smoothies and more DVDs. * What is the total utility at the optimal consumption bundle?