### Economics Quiz#### Question 1:**Question:** Jake likes Coke (C) and Pepsi (P), and he gets one unit of utility from consuming either one Coke or one Pepsi. $ P_C $ is the price of Coke and $ P_P $ is the price of Pepsi. We know that Coke is more expensive than Pepsi ($ P_C > P_P $). What is Jake’s indirect utility?**Options:**a. $ \frac{1}{P_P + P_C} $b. $ \frac{1}{P_P} $ *(Selected Option)*c. $ \frac{1}{P_C \cdot P_P} $d. $ \frac{1}{P_C} $ #### Question 2:**Question:** Fiorentina spends 50% of her income on books and the rest of her income on candles. We know that her income elasticity of demand for books is 1.5. What’s her income elasticity of demand for candles?**Options:**a. $ \frac{1}{2} $ *(Selected Option)*b. $ \frac{5}{6} $c. $ 1 $d. $ 1.2 $#### Explanation:**First Question:**Understanding Jake's indirect utility involves recognizing his preference and the prices he is subject to. Since Coke is more expensive than Pepsi, the optimal choice for maximum utility needs assessment based on the given prices.**Second Question:**Here, the problem requires using the information on how Fiorentina divides her income between books and candles, along with given elasticity, to determine the elasticity of demand for candles. The elasticity calculation follows by understanding complement and substitution effects in simple consumer behavior models.#### Answer Explanation:- For the first question, the selected answer being $ \frac{1}{P_P} $ suggests a focus on the price of Pepsi, given it's cheaper.- For the second question, interpreting the selected elasticity for candles should relate inversely to books given the split income spending pattern.

Since you have asked multiple question, we will solve the first question for you. If you want any…

Jake likes Coke (C) and Pepsi (P), and he gets one unit of utility from consuming either one Coke or one Pepsi. pc is the price of Coke and pp is the price of Pepsi. We know that Coke is more expensive than Pepsi (pc > Pp). What is Jake's indirect utility? Oa. PrtPc Ob. PP Oc. PCPP O d. Pc Clear my choice

Jake likes Coke (C) and Pepsi (P), and he gets one unit of utility from consuming either one Coke or one Pepsi. pc is the price of Coke and pp is the price of Pepsi. We know that Coke is more expensive than Pepsi (pc > Pp). What is Jake's indirect utility? Oa. PrtPc Ob. PP Oc. PCPP O d. Pc Clear my choice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Bob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 180. Furthermore, suppose the price of a unit of food is $1.00 and the price of a unit of housing is $2.00. Can Bob increase his utility without changing his total expenditures on food and housing? Holding expenditures constant, A. Bob can increase utility by spending more on food and less on housing. B. Bob can increase utility by spending more on food and the same amount on housing. C. Bob can increase utility by spending less on food and more on housing. D. Bob cannot increase his utility. E. Bob can increase utility by spending more on food and more on housing.
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?
Question 5 Andrew is currently spending all his income on 2 goods, burgers and Pepsi. He buys burgers at 4 L.E. a unit, with a total utility of 1000 and a marginal utility of 24. He buys Pepsi at 1 L.E a unit with a total utility of 800 and a marginal utility of 18. In order of reach consumer equilibrium, he should consume: The same amount of burgers and Pepsi. More Pepsi but the same amount of burgers. More Pepsi and less burgers. More burgers but the same amount of Pepsi. More burgers and less Pepsi.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
given the following informationon quantity consumed of cheese and total utility for Carl answer the following can you please help to check my answer. thanks qty (in oz) tu mu 1 50 0 2 70 20 3 85 15 4 95 10 5 90 5 a) what is the marginal for each addtion ounce of cheese - see above b) at a price of $16 an ounce, how many ounces of caviar should carl purchase to optimize his satisfaction? my answer 2 c) what is his conusmer surplus at this optimal level of consumption? (can you help me solve this I see too many diffrence equation for this very confuse)