If Jaxson's consuming goods x and y where mrs>mrt, he can increase his utility by a. decreasing x and increasing y. b. increasing x and decreasing y. c. doing nothing, because he is maximizing his utility. d. none of the above.

If Jaxson's consuming goods x and y where mrs>mrt, he can increase his utility by a. decreasing x and increasing y. b. increasing x and decreasing y. c. doing nothing, because he is maximizing his utility. d. none of the above.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: utility

A: The Utility depicts the wants satisfy power of a commodity. It is divided in 2 parts: Cardinal and…

Q: Suppose, a glass of lemonade (x) sell for 10 taka each and a cupcake (y) cost 60 taka. Total income…

A: U(X,Y) = X0.15Y0.85 where X is a glass of lemonade Y is cupcake Px is the price of a glass of…

Q: Suppose a consumer's utility function is u(x, y) = ;V+), with x and y the 6. amounts of two goods…

A: U(x,y) = 12x+12y2Px = 1Py = 2M = 300

Q: Consider a consumer whose preferences can be represented by the utility function u(x, y) = x + y Ca)…

A: utility function measures the welfare or satisfaction of a consumer as a function of the consumption…

Q: Quantity of Cheese Cakes Total Utility (TU) Marginal Utility (MU) (slices per day) 1 20 36 3 48 4 55…

A: Marginal utility is nothing but the additional utility which is derived from consumption of an…

Q: Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices…

A: Given: Money income=$150 Price of X=$2 Price of Y=$2

Q: (a) If my total utility increases at an increasing rate, I must be addicted to the product. TU Qty…

A: Utility refers to the amount of satisfaction gained from the consumption of goods and services.…

Q: TRUE OR FALSE Each individual has a utility function that spits out a number representing how happy…

Q: Which situation is consistent with the law of diminishing marginal utility? a. Paul's marginal…

A: The law of diminishing marginal utility states that as we consume more and more of a unit. The…

Q: Luke has a monthly income of $80. He spends this money making telephone calls from home (measured in…

A: Given information: Luke's Monthly income of $80 Plan A: at 0 monthly fees, make calls for $0.50 per…

Q: Rick thinks either Morty or Summer broke his TV. Morty and Summer each have to decide simultaneously…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

Q: arginal utitities 3 Y and 3 X 3X. imagine that he has a budget of $288 and prices are PX = $2 and…

A: Given Utility function U=3XY M=$288 Px=$2 Py=$3

Q: Think about a favorite thing you often buy or enjoy. It could be your favorite food, a favorite…

A: Suppose I buy chocolates in the course of a day. The largest utility I get is from consuming the…

Q: a. "Rajoo only eats vegetables. He does not derive any utility by consuming meat. In other words,…

A: Indifference curves are graphical representations of the utility levels of consumers. Higher…

Q: Explain the phrase “Less is more” in terms of Utility and cite 2 examples in your answer.

A: The utility is the consumer wants satisfying power of the goods or services. Marginal utility is…

Q: Graphs of a consumer's indifference map and budget lines and possible demand curves: 130 100 15 Us…

A: The indifference Curve refers to the curve which shows all the combinations of two goods that give…

Q: According to the law of diminishing marginal utility: Omarginal utility falls with the extra…

A: The law of diminishing marginal utility depicts that the marginal utility derived from each extra…

Q: Consumer spends $ 360 per week on two goods, X and Y. Px=$3 and Py= $2. His utility function is U =…

A: Utility function in economics represents the consumer’s preferences for goods and services. It is…

Q: You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5. Marginal utility…

A: Maximum utility Utility maximization is the desire for the greatest amount of pleasure from one's…

Q: Using examples, does an increase in income affect a consumer’s budget line? Does it impact their…

A: Suppose, X is an individual consuming Grapes and pineapples. X’s income is 150. X gets utility by…

Q: Rachel plans to hold a pizza party for her friends. Below is data on Rachel's utility for pizza in…

A: Answer to the question is as under:

Q: Rick thinks either Morty or Summer broke his TV. Morty and Summer each have to decide simultaneously…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Economics True or False. Please provide a short explanation. A person with the utility function U(x,…

Q: Let a person's utility function over two goods, X and Y, be given by, U(X,Y) = 3X0.4y0.6. Let the…

A: At Optimal bundle, slope of indifference curve is equal to slope of budget constraint

Q: Quantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/PY 1 75 96 135 60 72 3 185 50 3. 234 66 4 230 45 A…

A: (c)

Q: 3. If MU,1/Px1 > MU,2/PX2 is the consumer maximizing his utility? Explain how to maximize it if your…

A: The change in total utility because of change in one more unit of consumption is termed as marginal…

Q: Suppose that the price of a bag is $50 and the price of a calculator increases from $25 to $50 and…

A: 1. Bundle A = 0 bags + 4 calculators Total utility of bundle A = 0 + 23 = 23 2. Bundle B = 1 bags +…

Q: = 2x₁ + x2. Income = $100. p₁ = 28 and p2 = 10. The utility maximizing quantity of x2 is? Round your…

A: Utility refers to the satisfaction. The aim of the consumer is to maximize the utility subject to…

Q: Daisy is consuming X and Y so that she is spending her entire income and MUx/Px = 12 and MUy/Py =…

A: The indifference curve shows all the combinations of two goods that give the individual's an equal…

Q: Write Alia's utility function and draw some of her indifference curves. If Px=$2, Py=$4, and I=$24,…

A: Utility Function: Ultility function measures the satisfaction level of a consumer while he/she…

Q: Arya has an income of $150 per month. She spends on two goods: Burgers and Colas. The price of a…

A: Answer (c) Suppose income falls from $150 to $100, then the below graph shows changes in budget…

Q: 1. Arya has an income of $150 per month. She spends on two goods: Burgers and Colas. The price of a…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Teddy has preferences for stuffed animals (x) and audiobooks (y) illustrated by the utility function…

A: Given, Utility function, U(x,y)= x23y13 d) In part c) the teddy buys the 8 unit of x and 8 unit of…

Q: With a high stress job that oversees the public health of a nation, Tony loves to eat pomegranate…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1. If the consumer can only buy product x, how much will the consumer buy and what will be the total…

A: PX= $4 Py= $2 M= $20

Q: As consumer has more and more units of a goods, its marginal utility to him (a) Declines (b) Rises…

A: # Marginal utility is the satisfaction derived from the consumption of an additional unit of a good…

Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…

A: Answer is given below

Q: Assume someone has a utility function of U = Min[3X, Y]. They currently have 8 units of X and 3…

A: When utility is given in the form of U = Min(3X,Y), then it can be considered as the perfect…

Q: Ross is a race car driver. The more he races, the happier he is. The level of happiness Ross feels…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Find the quantities of each product that the consumer should buy, subject to the budget, that will…

A: Answer to the question is as follows :

Q: Govind's income is 5000 rupees and he is trying to maximize his utility from consuming Apple and…

A: Apple and oranges are both fruit. Assuming they are perfect substitutes for Govind. I= 5000Pa= 5Po…

Q: Refer to the table below. The consumer has only $16 to spend on X and Y. Px=$2, Py=$4. What is the…

A: Marginal Utility is the additional satisfaction a consumer gets from having one more unit of a good…

Q: Assume that a consumer purchases a combination of products Y and Z and that the MUVPy=4 and MU/Pz=…

A: Marginal utility is the additional utility that a consumer gets by consuming an additional unit of…

Q: PROBLEM (2) A consumer has preferences over bundles of apples (x) and oranges (y) represented by the…

A: The marginal rate of substitution means some units of one good are sacrificed in order to gain an…

Q: John consumes only two goods: wine (W) and beer (B). The following three bundles bring John the same…

A: This is a completeness preference, which simply means that when a John has to choose between wine…

Q: Teddy has preferences for stuffed animals (x) and audiobooks (9) illustrated by the utility function…

A: Given, Utility function, U(x,y) = x23y13 a) The given utility function is Cobb Douglas utility…

Q: Marginal Utility of X (units of utility) Marginal Utility of Y (units of utility) Price of X ($) 12…

A: Answer to the question is as follows:

Q: Lynn has a Cobb-Douglas utility function U(x1, x2) =XaYb What share of her budget does she…

A: The indifference curve of the consumer shows all the combinations of two goods that provide the same…

Question

If Jaxson's consuming goods x and y where mrs>mrt, he can increase his utility by

a. decreasing x and increasing y.

b. increasing x and decreasing y.

c. doing nothing, because he is maximizing his utility.

d. none of the above.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
Which situation is consistent with the law of diminishing marginal utility? a. Paul's marginal utility from eating burgers reaches a maximum when total utility is zero. b. The more burgers Paul eats, the more he enjoys another burger c. Paul's marginal utility from eating burgers becomes positive after eating three burgers. d. The more burgers Paul eats, the less he enjoys another burger
George drinks 5 cans of beer, his total utility of bear can be calcualted by A. summing the marginal utility from the first can of of beer and the 5th can of beer B. Summing up the marginal utilities of each successive can consumed C. multiplying price times quanitity and dividing by the marginal utility D. multiplying the marginal utility from the first can by 5
The table below represents how Marco feels about chocolate candy bars. a. Fill in the missing values for total utility and marginal utility. Instructions: Enter your answers as a whole number. Chocolate Candy Bars and Marco's Utility Chocolate Candy Total Utility Bars (utils) 0 0 1 27 2 3 4 5 6 (Click to select) 60 ♦ 76 Marginal Utility (utils) 27 19 Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 28 utils of happiness, or two additional candy bars. b. Which is he likely to prefer? 6 1
According to the law of diminishing marginal utility, marginal utility of a good declines as more of it is consumed in a given time period. According to this law, which of the following statement is true? a. The more I go to school, the more I want to do something else b. Since we need gasoline more than we need paper, gasoline is more valuable c. Peas give me no satisfaction, so I won't buy any d. The more coffee I drink, the more I want to drink
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 40 utils. After three Cokes, he has a total utility of 90 utils. a. Complete the table below to show John's marginal utility for each Coke. Instructions: Enter your answers as a whole number. Cokes Consumed Marginal Utility First Coke Second Coke Third Coke
When given the marginal utility of the first five units of a product, we can calculate the total utility by a. finding the difference between the fourth and fifth units. b. finding the difference between the first and fifth units. c. looking at the marginal utility of the fifth unit. d. adding the fourth and fifth units. e. adding the marginal utilities of the first five units
Could you please help with b and c. I've attached the formula for Utility.
Matt has $14 to spend on fruit today at the grocery store. The only fruits he likes are apples and oranges. Both cost $2 per pound. Matt's preferences between these fruits are presented in the table below. How many apples and oranges will he buy if he were a utility maximizer? a b с Pounds of Apples 1 2 3 4 5 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. d Pounds of Oranges 1 2 3 4 5 Apples = 1 pound, Oranges = 2 pounds Apples = 2 pound, Oranges = 5 pounds Apples = 1 pound, Oranges = 1 pound Marginal Utility from Apples Apples = 3 pounds, Oranges = 3 pounds. 200 300 380 440 480 Marginal Utility from Oranges 100 200 250 280 300
U(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is the price of good x, py is the price of good y and M is the budget available. a. Derive an expression for the marginal utility of x. Under what condition is the marginal utility diminishing. b. Derive an expression for the marginal utility of y. Under what condition is the marginal utility diminishing.
MCQ2. Which of the following is used to depict alternative combinations of goods that are equally satisfying? A. B. None of the below. An indifference curve. A demand curve. C. D. A budget constraint