Pick any random tangible good that gives you happiness or sense of contentment when you utilise it. Analyse it well and answer the following questions based on that good: 1. Define Utility in your own words, relating to the good that you picked. 2. Based on your personal preference of consumption level, fill up the following table on your own: QUANTITY CONSUMED UTILITY UTILITY TOTAL AVERAGE MARGINAL UTILITY 10 120 20 210 30 270 40 300 50 300 3. Plot the graphs of Total Utility and Marginal Utility; briefly explain your opinion about the shape and nature of the graphs.

Pick any random tangible good that gives you happiness or sense of contentment when you utilise it. Analyse it well and answer the following questions based on that good: 1. Define Utility in your own words, relating to the good that you picked. 2. Based on your personal preference of consumption level, fill up the following table on your own: QUANTITY CONSUMED UTILITY UTILITY TOTAL AVERAGE MARGINAL UTILITY 10 120 20 210 30 270 40 300 50 300 3. Plot the graphs of Total Utility and Marginal Utility; briefly explain your opinion about the shape and nature of the graphs.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

question # 1
How does a consumer decide what combination of products to buy using the marginal utility concept? Explain. please don,t copy and paste from anywhere. Answer step by step and use graph if possible
solve both the questions in the image provided.
You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (price–quantity-demanded table) for X.
At what point does a consumer maximize utility?
would you rather maximize your total utility or your marginal utility?
Complete the following table. Instructions: Enter your answer for total utility as a whole number and your answer for marginal utility rounded to one decimal place. Units Total Marginal Utility Consumed Utility 10 32 3.2 20 2.8 30 86 40 111 50 2.4 60 158
QUESTION 1 Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream = $2 per scoop Price of Cake: $4 per slice What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example _ Cake _Ice Cream QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream =$2 per scoop Price of Cake: $4 per slice Quantity of TU Ice MU Ice MU/P Quantity Ice Cream Cream Cream TU MU MU/P of cake Cake Cake 1 4 1 10 2 3 2 8 3 2 3 6 4 1 4 4 5 0 5 2 The amount of total utility you'd enjoy at that level of consumption What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example Cream Cake
Price for X is $1 and Y is $2. Budget is $9. Good X Good Y Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1 When the consumer purchases the utility-maximizing combination of goods X and Y, total utility will be what?
Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while each burger is $10. Suppose you already purchased 6 pizzas. What is the maximum number of burgers that you can buy with the remaining funds in your budget?
Q6) Utility Ratio and Consumption Maximization A consumer downloads 3 movies and 4 apps per week. Suppose the price is $2 per movie and $2 per app, and the marginal utility for this consumption level is 6 for a movie and 8 for an app. Instructions: Round your responses to one decimal place. a. Calculate, show the formula, marginal utility per dollar. ..Per movie ......Per app b. Is this optimal consumption? c. If not, how should they change their consumption to maximize?
Draw YOUR indifference curve for the consumption of two goods (you pick the goods – be creative!) Make sure to include labels. Why did you choose these two goods? Why do you view these as being a tradeoff? Carefully explain why the indifference curve has the shape you created. (Hint: Discuss the slope. What it means and how it changes) Determine a budget that will be allocated towards your consumption of these two goods. Given the budget, prices for the goods, and your preferences, how will you find the utility-maximizing combination? Give an intuitive answer as well as a graphical answer (make sure to label the graph accordingly).