Janelle loves sashimi. Her first piece of sashimi usually gives her a marginal benefit of $5. Each additional piece yields a marginal benefit that declines by $0.25 per piece. If her favorite sushi bar charges $2.75 per piece of sashimi, how many pieces should she eat? [1]
Q: Briefly discuss four disadvantages of using Cost-benefit analysis to measure utility
A: Cost-benefit analysis: A cost-benefit analysis is a systematic process that companies use to analyze…
Q: John works at Frito-Lay distribution center. He is paid $20 per hour and can choose how many hours…
A: The payment of per hour = $20 Additional benefit after 30 hours of working = $100
Q: Julio loves gardening. His favourite plants are tulips and hydrangeas. His utility function is '…
A: Given that: u(t, h) = t + 100h - h2 Constraint: 500 = 1(t) + 4(h)
Q: If a consumer is consuming a combination of goods and services on his budget line, has the consumer…
A: The budget line is the graphical representation of all the possible combinations of two different…
Q: Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which…
A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…
A: Utility refers to the level of satisfaction that a consumer receives by consuming a good. A rational…
Q: 40. As long as the principle of diminishing marginal utility is operating, any increased consumption…
A: The change in the total utility from the consumption of an additional unit of a good is known as a…
Q: Describe the five social factors that influence consumer behavior.
A: Consumer behavior is a part of behavioral economics which specifically deals with the mindset and…
Q: The marginal benefit Claire gets from purchasing a third pair of flip-flops is a) the same…
A: Marginal benefit is the extra benefit received from selling an extra unit of a good.
Q: The law of explains why people and societies rarely make all-or-nothing choices. diminishing…
A: (A)
Q: suppose the price per gallon of water is 1 cent and the price per carat of diamond is $10,000. Is…
A: The ability or capacity of a commodity to satisfy consumers’ wants is known as a utility.
Q: Question 8 Total Utility Oranges Marginal Utility Total Utility Oranges Marginal Utility Lemons…
A: Marginal utility refers to an additional utility with one more unit of good or service consumed.
Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…
A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…
Q: Ruby loves dividing her free time between going to the movies and reading. She has 20 hours per week…
A: Given: Amount per week=60 Cost of going of movies=6 Cost of books=15
Q: Suppose a trip to the theater costs $10, but gives 40 units of utility to a consumer. A trip to the…
A: Utility refers to the amount of satisfaction received by a consumer from the consumption of a good…
Q: Juliette spends $48 each month on Oreo cookies (which cost $2 per package) and salt and vinegar…
A: Budget constraint represent combination of goods and services which can be purchased by a consumer…
Q: Breakdown the shift from the original point of consumption to the new point of consumption using the…
A: The income effect measures the change in quantity consumed due to the change in the purchasing power…
Q: Suppose a consumer has a budget of $200 to spend on two goods, X and Y, whose prices are $20 and…
A: Answer: Given, Total budget = $200 Price of good X PX=$20Price of good Y PY=$10 (d). A consumer is…
Q: To reach consumer equilibrium, which of the following consumption choices must be made? The total…
A: Answer - Need to find- To reach consumer equilibrium, which of the following consumption choices…
Q: Homer Simpson has a budget of $100 allocated for the consumption of burgers and donuts. If the price…
A: Budget(M)= 100 Burger (B) price(p1) =% 5 ,and Donut (D) price(p2)=%2.50 Budget constraint, M=…
Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…
A: Theory of diminishing marginal utility states that, with other things being equal, there would be a…
Q: Which of the following defines marginal utility? a. the maximum amount of satisfaction from…
A: Utility is the satisfaction a consumer derives from consuming total units of the good.
Q: The table below shows the total benefit, in dollars, that Andrew derives from consuming two goods,…
A: The total benefit is the benefit received by the consumption of the good. Marginal benefit is the…
Q: Draw an individual choice diagram for a person choosing between buying apples or bananas with a…
A: Answer: A person maximizes his/her utility where the budget line and indifference curves are tangent…
Q: Explain how non-convexity in choice can result in multiple optimal choices. Provide a graphical…
A: An indifference curve refers to the combination of two goods that give a consumer the same…
Q: If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals…
A: ''Since multiple questions are asked, we are supposed to answer one question'' Marginal Utility is…
Q: I need help answering questions a, b, c, d, ei and eii. (please show all work) thank you!!
A: Since you have posted multi-subparts question, so as per answering guideline, we will solve first…
Q: Question 1 Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive…
A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…
Q: Another instance when people are likely not to spend a dime (or a minute) on an item is when they…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Examples of form utility?
A: Utility is defined as the complete satisfaction a consumer derives from the usage of a product or…
Q: The first slice of pizza yields Ali 18 units of utility and the second yields him an additional 12…
A: Marginal Utility is the additional utility when we consume one more additional units , so here we…
Q: From your own point of view, list down 15 items of other goods and services that are necessary to…
A: The New Normal Situation refers to a situation which is unusual, difficult and seems to be temporary…
Q: How should Mario allocate his Php 50 between his choices of eggs and sardines in order to attain the…
A: The consumer consumes goods and services from which utility is derived. The utility maximisation…
Q: Marginal Analysis is an examination of the additional benefits of an activity compared to the…
A: Marginal Cost is the increase in a producer's total cost when it increases its output by one unit.…
Q: The following table shows the marginal utility per dollar of apples and pears for five consumers:…
A: According to the law of diminishing marginal utility, as the consumption increases, marginal utility…
Q: example of Diminishing Marginal Utility and briefly explain why?
A: Diminishing marginal utility means when a consumer consumes a good then marginal utility derived…
Q: Which of the following statements about a budget line is correct? The opportunity cost of the good…
A: Budget line is the curve represents the two possible combinations of goods which can be bought with…
Q: Refer to Table 6-2. The table shows Vladimir's total and marginal utility from eating steaks. What…
A: Aggregate satisfaction a consumer gets from the consumption of any goods or services is known as…
Q: The set of all the alternatives a consumer can afford is shown by a) an indeffirence curve b) a…
A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…
Q: Suppose Duncan budgets $20 a week for entertainment. He can either go bowling for $4 a game, or play…
A: The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week? Consider the table below which lists John's marginal utility schedule for steak and hamburger meals: Steak meals per month MU of steak meals Price per steak meal Hamburger meals per month MU of hamburger meals Price per hamburger meal 1 20 $10 1 15 $5 2 15 10 2 8 5 3 12 10 3 6 5 4 10 10 4 4 5 5 8 10 5 2 5 Given a budget of $45, how many steak and hamburger meals will James buy per month to maximize his total utility? What is the total utility realized?Praxilla, who lived in ancient Greece, derivesutility from reading poems and from eating cucumbers.Praxilla gets 30 units of marginal utility from her firstpoem, 27 units of marginal utility from her secondpoem, 24 units of marginal utility from her third poem,and so on, with marginal utility declining by three unitsfor each additional poem. Praxilla gets six units ofmarginal utility for each of her first three cucumbersconsumed, five units of marginal utility for each of hernext three cucumbers consumed, four units of marginalutility for each of the following three cucumbersconsumed, and so on, with marginal utility declining byone for every three cucumbers consumed. A poem coststhree bronze coins but a cucumber costs only one bronzecoin. Praxilla has 18 bronze coins. Sketch Praxilla’sbudget set between poems and cucumbers, placingpoems on the vertical axis and cucumbers on thehorizontal axis. Start off with the choice of zero poemsand 18 cucumbers, and calculate the changes in…Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either callher on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasolinemoney. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses ahandy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values inTable 6.6, figure out the points on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch)and identify his utility-maximizing point
- Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. Suppose Raymond decides to cut his monthly budget in half. Coincidentally, the next time he shops, he learns that meatloaves and pineapples are on sale for half price. Show what happens to Raymond’s budget line?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 round-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,figureoutthepointsonJeremy’sconsumptionchoicebudgetconstraint(itmaybehelpfultodoasketch) and identify his utility-maximizing point. 3. Explain all the reasons why a decrease in a product's price would lead to an increase in purchases. 4. Asacollegestudentyouworkatapart-timejob,butyourparentsalsosendyouamonthly“allowance.” Suppose onemonthyourparentsforgottosendthecheck.Showgraphicallyhowyourbudgetconstraintisaffected.Assuming you only buy normal goods, what would happen to your purchases of goods?Digital Apps per Period 0 1 2 3 4 5 Total Utility of Digital Apps per Period (utils) which 0 50.0 95.0 135.0 171.5 200.0 Marginal Utility (utils) 50.0 45.0 40.0 36.5 28.5 Marginal Utility Portable per Dollars Spent Power Banks (price = $5.97) per Period | 8.4 7.5 6.7 6.1 4.8 0 1 GTA W N 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Utility (utils) 25 22 18 15 9 Marginal Utility per Dollars Spent (price = $2.70) 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is $ and spending on portable power banks is $. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is $ the…
- 1. Does a dollar given to a rich person raise the rich person’s total utility more than a dollar given to a poor person raises the poor person’s total utility? 2. This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a third party this week? 3. Suppose 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 $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef for the marginal utility of pork? 4. Explain the relationship between the law of diminishing marginal utility and the law of demand. 5. Using the marginal utility…A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, orsodas, which cost $4 each.What is the largest number of burritos that the student could afford to purchase in onemonth?What is the largest number of sodas the student could afford to purchase in one month? Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis.this week you have gone to two parties. assume the total utility you gained from these parties is 100 utils. then you go to a third party, and your total utility rises to 110 utils. what is the marginal utility of the third party attended per week? given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week?
- 70- 60- B 50- 40- 30- Suppose Naomi consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and the price of good 2 was $3.20. Given these prices, Naomi maximized satisfaction consuming bundle A, as indicated in the figure to the right. However, this year, the price of good 1 has increased to $6.00 and the price of good 2 has changed to $2.40. Given these prices, Naomi would be equally well off at consumption bundle B. Calculate a Laspeyres cost-of-living index for Naomi using 100 as the base for last year. In particular, the Laspeyres index for this year is ☐. (Enter your response rounded to two decimal places.) The Laspeyres index suggests inflation has been percent over the year. (Enter your response rounded to two decimal places.) The Laspeyres cost-of-living index overstates the rate of inflation because it assumes that consumers do not alter their consumption patterns as prices change. Naomi's true cost-of-living increase has been ☐ percent. (Enter your…29. A consumer is trying to decide between purchasing one smoothie or one cappuccino. They get 30 utils of enjoyment from cappuccino and the cappuccino cost $5 and they get 40 utils of enjoyment from the smoothie. Below what price will they decide to buy the smoothie? This cannot be solved unless we are given the price of the smoothie. $8.00 $6.00 $6.67The table below shows the total benefit, in dollars, that Diana derives from consuming two goods, Good G and donuts. Quantity of Good G 0 1 2 3 4 5 6 Total Benefit of Good G $0 $40 $70 $90 $100 $103 $105 Quantity of Donuts 0 1 2 3 4 5 6 Total Benefit of Donuts $0 $80 $120 $140 $152 $156 $156 Diana has a limited weekly income of $20, and she spends it all on Good G and donuts. Assume the price of Good G is $2 per unit and the price of a donut is $4. (a) Identify the quantity of Good G and the quantity of donuts that will maximize Diana's total benefit given her weekly income. Explain using marginal analysis. (b) Calculate Diana's consumer surplus from the fourth donut. Show your work. (c) If Diana's weekly income decreases from $20 to $18, would Diana be able to buy 5 units of Good G and 2 donuts? Explain using numbers. (d) Suppose that donuts are produced in a perfectly competitive market and the price of sugar, an input to the production of donuts, increases. If donuts are a normal…