Ham Pork 11. The above figure shows Larry's indifference map and budget lines for ham and pork. Which of the following statements is TRUE? A) Pork is an inferior good. B) Ham is an inferior good. C) Neither pork nor ham is an inferior good. D) Both ham and pork are inferior goods. Which
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- Suppose utility can be measured by "utils" and that Jim buys both coffee and bagels. The price of coffee is $2 and the price of a bagel is $3. If Jim is currently consuming coffee and bagels such that the marginal utility from the last cup of coffee consumed was 6 utils and the marginal utility from the last bagel consumed was 12 utils, is Jim maximizing utility? Why or why not? If not, what should Jim do? Explain in detail.Raphael consumes only cheese and crackers. True or False: Cheese and crackers can both be inferior goods for Raphael. True or False Suppose that cheese is a normal good for Raphael while crackers are an inferior good. If the price of cheese falls, Raphael's consumption of crackers (decrese or increase) ? and his consumption of cheese ( decrese or increase) ? .6. Reggie consumes only two goods: food and shelter. On a graph with shelter on the horizontal axis and food on the vertical axis, his price consumption curve for shelter is a vertical line. Draw a pair of budget lines and indifference curves that are consistent with this description of his preferences. What must always be true about Reggie's income and substitution effects as the result of a change in the price of shelter?
- Calculate marginal utility and marginal utilty 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 (CHEESE) (CHEESE) (CHEESE) WEDGES OF CHEESE GLASSES (WINE) (WINE) (WINE) MARGINAL UTILITY MARGINAL MARGINAL UTILITY MARGINAL UTIUTY/dollar OF WINE TOTAL UTILITY TOTAL UTILITY UTIUTY/dollar 70 Number Number Number Number 160 35 Number 65 Number 225 3. 41 Number Number Number Number 45 288 Number 61 Number 48 349 The Quantity of Wine this consumer would buy to maximize utlity is: Number Number The Quantity of Cheese this consumer would buy to maximize utilit is : What is the consumer's Total Utility when optimized: Number 10Five consumers have the following marginal utilities of apples and pears: Consumer Marginal Utility of Apples Marginal Utility of Pears Sean 6 12 Yvette 6 6 Bob 6 3 Cho 3 6 Eric 3 12 The price of an apple is $1, and the price of a pear is $2. Which, if any, of these consumers are optimizing over their choice of fruit? Check all that apply. -Sean -Yvette -Bob -Cho -EricQuestion No. 3 The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop Total utility Total utility No of from Coffee from Pastries Coffee & Pastries 1.50 10 2 2.70 13 3 3.60 15 4 3.60 16 5 16.5 a) Calculate Jerry's marginal utility from coffee at each number of cups per 2 hours. Does Jerry's marginal utility from Coffee obey the principle of diminishing marginal utility? b) Calculate Jerry's marginal utility from Pastries at each number of hours per 2 hours. Does Jerry's marginal utility from Pastries obey the principle of diminishing marginal utility? c) Which does Ahmed enjoy more: his 4th cup of Coffee or his 4th piece of pastries?
- Question No. 3 The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop Total utility Total utility No of from Coffee from Pastries Coffee & Pastries 1.50 10 2 2.70 13 3 3.60 15 4 3.60 16 5 16.5 a) Calculate Jerry's marginal utility from coffee at each number of cups per 2 hours. Does Jerry's marginal utility from Coffee obey the principle of diminishing marginal utility? b) Calculate Jerry's marginal utility from Pastries at each number of hours per 2 hours. Does Jerry's marginal utility from Pastries obey the principle of diminishing marginal utility? c) Which does Jerry's enjoy more: his 4th cup of Coffee or his 4th piece of pastries?7. The following table shows Madison's utility, from consuming popcom and Coke: Suppose that Madison has income of $39,00, the price of popcom is $3.00, and the price of Coke is $13.50. If Madison wants to maximize her utility, how much popcorn and Coke should she buy? Coke Popcom Marginal Utility 96 Quantity Marginal Utility 144 108 72 48 72 36 24 12 6. 18 9 cans of Coke. (Enter your responses as boxes of popcorn and Madison should buy integers.) 2345 6Jane has a budget of $15 to spend at the local scientific store. Her two favorite items are beakers (Product X) which costs $3 and petri dishes (Peroduct Y) which costs $2. In the schedule below you can see the marginal utility for each of her favorite items. Which combination would maximize Jane's utility? X y Quantity MUx Quantity MUy 1 40 1 24 2 28 2 20 3 24 3 16 4 20 4 12 5 1 5 8 a.) 3 beakers & 3 petri dishes b.) 4 beakers & 2 petri dishes c.) 5 beakers & 1 petri dishes
- 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; decreaseSuppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound, and pork is $3.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, the ratio of your marginal utility of beef to your marginal utility of pork isQuarts of ice cream Total utility from ice cream 0 0 1 80 2 150 3 210 4 260 From the information in the above table, what is the marginal utility of the third quart of ice cream? A) 80 B) 70 C) 60 D) 230 Pizza Pepsi Slices per week Total utility Quantity per week Total utility 0 0 0 0 1 100 1 70 2 150 2 130 3 175 3 180 4 190 4 220 5 195 5 250 The table shows Elaine's utility from pizza and Pepsi. If Elaine consumes 2 slices of pizza and 3 Pepsis, her marginal utility from the fourth Pepsi is ________ units. A) 60 B) 54 C) 40 D) 220 Fritos Fruit drinks Quantity Total utility Quantity Total utility 0 0 0 0 1 40 1 50 2 75 2 95 3 105 3 135 4 130 4 170 5 150 5 200 6 165 6 225 The table above shows the…
