Once a scale of preference is drawn, it is important that choice is made among the several alternatives so that consumers will get a given level of satisfaction.” Use the above statement to explain the relationship between scarcity, choice, scale of preference and opportunity cost.

Once a scale of preference is drawn, it is important that choice is made among the several alternatives so that consumers will get a given level of satisfaction.” Use the above statement to explain the relationship between scarcity, choice, scale of preference and opportunity cost.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2QFR

See similar textbooks

Related questions

Q: From economic theory, the willingness of a consumer to give up consumption of one commodity (X) in…

A: Consumer equilibrium refer to that situation of quantity consume where consumer receives maximum…

Q: Charles is training for a triathlon, a timed race that combines swimming, biking, and running.…

A: As per principles of economic behaviour, people made decision as per the cost-benefit analysis. If…

Q: Evaluate the one specific law which states that the marginal utility of a good or service declines…

A: The additional pleasure or advantage that a consumer receives from consuming one more unit of an…

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: What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of…

A: Utility shows the satisfaction. MU is the marginal utility. MU is calculated as the change in…

Q: Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal…

A: Marginal utility is additional utility derived from one extra unit of good consumed.

Q: Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the…

A: a) Two factors occur when the price of haggis rises that will influence how many (units) of haggis…

Q: In an auction, potential buyers compete for a good by submitting bids. Adam Gallinsky, a social…

A: An auction is a public sales process of buying and selling of property and goods and services by…

Q: For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two…

A: In microeconomics, the function of U {"utility"} is described as a crucial term or concept in which…

Q: An individual has a utility function, U(x, y) = x ∙ y, with a budget constraint, 120 = 2x + y. (a)…

A: Consumer maximizes utility subject to the budget constraint. The consumer consumes at the point…

Q: The law of diminishing marginal utility is consistent with the fact that people trade. Do you agree…

A: In economics, various laws and theories are developed to understand the market behavior in different…

Q: What is the law of diminishing marginal utility for consumers, what is the learning curve of a…

A: Marginal utility for consumers is defined as the additional utility derived by the consumer from the…

Q: In economics, we have learned that related goods’ price does matter. Given the budget constraint and…

A: Related goods are of two types complementary and substitute. Complementary commodities are those…

Q: In your own experience, share two times instances where the law of diminishing marginal utility…

A: The law of diminishing marginal satisfaction states that the satisfaction of a person is decreased…

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

Q: We can explain the paradox of value as follows: The consumer surplus from water, which is cheap, is…

A: The consumer surplus(cs) is difference between the maximum value that the consumer(c) is willing to…

Q: Positive marginal utility is when the marginal utility increases the total utility whereas negative…

A: Utility is characterised as the entire satisfaction a customer experiences when utilising a good or…

Q: Define, and then explain in your own words what the concept of Marginal Utility is:

A: Marginal utility is that utility which consumer get an additional satisfaction from buying or…

Q: What is the equation for the student's budget constraint? In your equation, use Q1 as the variable…

A: The opportunity cost = What is sacrificed / What is gained

Q: Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas…

A: Marginal utility is the change in utility with an additional unit of consumption. MU per dollar is…

Q: The law of diminishing marginal utility states that?

A: the law of diminishing marginal utility was given by a German Economist Gossen, which is why it is…

Q: Last week, neither Alistair nor Bodana purchased blueberries (x). Both consumers had $30 to spend on…

A: a) Alistair's budget constraint is given by 3x + 3y = 30, which simplifies to x + y = 10. Bodana's…

Q: Owen saw that the price of peaches had gone down, and so he decided to buy more peaches.” Based on…

A: If the price of any good goes down and people tends to buy more quantity of that good, it reflects…

Question

100%

Video Video

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

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

Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas used and your calculations. What is marginal utility (MU) of the 3rd apple? What is marginal utility (MU) of 6th strawberry? What is the marginal utility per dollar spent on the 3th apple? What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of strawberries and apples satisfies the following rule? How do you know?
Positive marginal utility is when the marginal utility increases the total utility whereas negative marginal utility is when the consumption of an additional unit reduces the amount of the total utility. Is it true or false?
Can you help me answer these questions it's macroeconomics theory
For Unit 4 Learning Journal, you will use the marginal utility formula to choose between two products. Catherine is having dinner at the Yellow Restaurant. She wants desert after eating her entree. She is trying to decide between a cookie or a slice of pie. The cost of a cookie is $5 and the cost of a slice of pie is $8. Refer to the Unit 4 Learning Journal Marginal Utility spreadsheet Compute the marginal utility for cookie and slice of pie Compute the marginal utility per dollar What is the utility maximizing choice for a cookie and slice of pie? Explain what the utility maximizing choice means. Discuss how you could use marginal utility to make consumer choices
Evaluate the one specific law which states that the marginal utility of a good orservice declines as more of the good or service is consumed in a specific timeperiod.
From economic theory, the willingness of a consumer to give up consumption of one commodity (X) in exchange for an increase in some other commodity (Y) and remain equally satisfied can be mathematically calculated as their marginal utility of good X divided by their marginal utility of good Y. What is the economic term for this measure or concept?
Recall the text’s definition of diminishing marginal utility: “the common pattern that each marginal unit of a good consumed provides less of an addition to utility than the previous unit.” The reason for this behavior is because of biology. Our body sends our brains a signal once too much of a good or service has been consumed. This prevents a person from literally eating until they explode. In your own experience, share two times instances where the law of diminishing marginal utility applied to you. Can you think of any time when the law of diminishing marginal utility failed for someone?
Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you calculate Marginal Utility? What is the formula?What is the utility maximizing rule? Describe the rule as well as state it mathematically.
Define, and then explain in your own words what the concept of Marginal Utility is:
uestion1:Donna and Jim are two consumers purchasing strawberries and chocolates. Jim’s utility function is U (x, y) = xy and Donna’s utility function is U (x, y) = x2y where x denotes strawberries and y denoteschocolates. Jim’s marginal utility functions are MUX=y and MUy=x while Donna’s are MUX=2xy and MUy=x2. Jim’s income is $100, and Donna’s income is $150. What is the optimal bundle for Donna if the price of strawberries is $2 and the price of chocolate is $4? What is the optimal bundle for Jim, and for Donna, when the price of strawberries rises to $3?Question2:Consider a one-period eco
Q#9
What is the law of diminishing marginal utility for consumers, what is the learning curve of a producer? It seems that as the producer becomes more efficient at producing their product; the consumer tends to have less and less satisfaction from consuming one additional unit of the producer's product. Is this true (think in terms of only one producer and consumer)? Explain your answer.