If the consumer is consuming exactly two goods, and he is always spending all of his money, can both of them be inferior goods?

Q: You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the…

A: Units of X MUX Units of Y MUY MUX/Price of X MUY/Price of Y Total utility of X Total utility of Y…

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: Use the Law of Diminishing Marginal Utility to discuss why Market Demand has to have a downward…

A: Utility is the satisfaction  derive by consuming goods and services. And due to law of diminishing…

Q: what is the principle of utility

A: Utility refers to the satisfaction received by a consumer from consuming a particular commodity.

Q: What are the 4 forms of utility? And explain what each one is.

A: Utility: It means the satisfaction received by consuming a good or service.

Q: Rafe is optimally choosing to consume 6 apples and 3 bananas. The prices of apples and bananas are…

A: As the first order condition for the utility maximization problem is :  MRS = Pa / Pb  As, Pa = 7…

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

A:

Q: What are the assumptions of the consumer equilibrium??

A: According to the given question A consumer equilibrium is an equilibrium where it is a point at…

Q: Problem 1: Suppose you have an income of $100 to spend on two goods. Good 1 costs $25 per unit. Good…

A: A budget constraint, also known as a budget line or budget constraint line, is a fundamental concept…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.