(Figure: Budget Lines for Tangerines and Watermelons) Use Figure: Budget Lines for Tangerines and Watermelons. For some time, Albert has had $5 per month to spend on tangerines and watermelons. The price of a tangerine is $0.50, and the price of a watermelon is $0.25. Which chart shows what will happen to his budget line if the price of a tangerine rises to $1.00, and the price of a watermelon rises to $0.50? A Tangerines 20 000 16 12 8 4- 0 Tangerines 20 16 12 8 4 0 A C B 4 8 4 8 1 12 12 C 16 20 24 Tangerines 16 20 24 28 Watermelons 28 20 Watermelons 16 12 8 4 Tangerines 0 20 16 12 8 4 0 4 4 8 8 B 12 16 20 24 28 Watermelons 12 D 16 20 24 28 Watermelons

(Figure: Budget Lines for Tangerines and Watermelons) Use Figure: Budget Lines for Tangerines and Watermelons. For some time, Albert has had $5 per month to spend on tangerines and watermelons. The price of a tangerine is $0.50, and the price of a watermelon is $0.25. Which chart shows what will happen to his budget line if the price of a tangerine rises to $1.00, and the price of a watermelon rises to $0.50? A Tangerines 20 000 16 12 8 4- 0 Tangerines 20 16 12 8 4 0 A C B 4 8 4 8 1 12 12 C 16 20 24 Tangerines 16 20 24 28 Watermelons 28 20 Watermelons 16 12 8 4 Tangerines 0 20 16 12 8 4 0 4 4 8 8 B 12 16 20 24 28 Watermelons 12 D 16 20 24 28 Watermelons

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 13PA

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-A Suppose that with a budget of $160, Fatima spends $96 on sushi and $64 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? pieces of sushi and bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? Given that it used to take Fatima's entire $160 to buy those quantities, how big is the income effect caused by the lower price of bagels?
(Table: Marginal Utility per Dollar of Twix) Use Table: Marginal Utility per Dollar of Twix. The price of Twix is $2 per bar. The marginal utility per dollar of the second bar of Twix is: Table: Marginal Utility per Dollar of Twix Bars Quantity of Twix bars Total utility 0 1 2 3 4 5 5. 16. 10. 2. 0 6 10 13 15 16
(Table: Marginal Utility per Dollar of Twix) Use Table: Marginal Utility per Dollar of Twix. The price of Twix is $2 per bar. If the price of Twix increases to $3 per bar, the marginal utility per dollar for each bar of Twix will: Table: Marginal Utility per Dollar of Twix Bars Quantity of Twix bars Total utility 10 0 1 6 2 10 3 13 15 16 5 O remain constant. O increase O decrease. O fluctuate randomly.
1. Suppose you get utility from two goods, food and clothing, and have a certain amount income. Explain briefly how to derive the demand curve for food while the price of clothing and the amount of income remain constant?
(Table: Optimal Choice of Yogurt and Cheese) Use Table: Optimal Choice of Yogurt and Cheese. The price of yogurt is $2 per unit, and the price of cheese is $4 per pound. Hailey's income is $16. If she spends all of her income on cheese, the most she can buy is pounds of cheese, and her total utility will be Table: Utility from Yogurt and Cheese Number of yogurts 0 1 2345678 O O O 8; 240 4; 22 6; 204 4; 152 Total utility for yogurt 0 32 60 84 104 120 132 140 144 Pounds of cheese 0 1 2 3 4 5 6 7 8 Total utility for cheese 0 44 84 120 152 180 204 224 240
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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 3 The Price of Cheese is 0.14 The Consumer's budget for wine and Cheese is 9.69 (WINE) (WINE) (CHEESE) (CHEESE) (CHEESE) GLASSES (WINE) WEDGES OF WINE MARGINAL OF CHEESE TOTAL UTILITY MARGINAL UTILITY MARGINAL TOTAL UTILITY MARGINAL UTILITY UTILITY/dollar UTILITY/dollar 1 70 10 Number Number Number Number 35 160 6 Number 65 Number 225 3 41 Number Number Number Number 4 45 4. 288 Number 61 Number 48 349 The Quantity of Wine this consumer would buy to maximize utility is : Number Number The Quantity of Cheese this consumer would buy to maximize utility is : What is the consumer's Total Utility when optimized : Number
Q43 Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie... a. Should buy more cheese and less bread to maximise her utility. b. Should buy more bread and more cheese in order to maximise her utility. c. Spends too much money on bread and cheese. d. Should buy more bread and less cheese in order to maximise her utility. e. Is buying currently the utility-maximising amount of bread and cheese.
Use Figure: Budget Lines for Tangerines and Watermelons. For some time, Albert has had $5 per month to spend on tangerines and watermelons. The price of a tangerine is $0.50, and the price of a watermelon is $0.25. Which chart shows what will happen to his budget line if his income increases to $6?
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The table shows Rita's total utility from burritos and hot dogs. When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog falls from $4 to $2, how many burritos and hot dogs does Rita buy? What are two points on Rita's demand curve for burritos? When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog is $4, Rita buys burritos and hot dogs. Everything else remaining the same, if the price of a burrito falls from $4 to $2, how many burritos and hot dogs does Rita buy? burritos and hot dogs. Rita buys So two points on Rita's demand curve for burritos are $2.00 each. burritos at $4.00 each and burritos at (...)
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