° Pizzan 4 5 2 ♡ B 4 199 0 1 2 3 4 5 6 7 8 9 10 Burgers Please refer to the graph above. A human goes to the market and must decide between buying Pizzas or Burgers for their meal. Their budget is $181. The price of a burger is $18. What is the estimated price of a pizza? about $40 O about $10 O about $30 O about $20
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- Exercise 2 Sketch the demand and supply curve to show the change in equilibrium price & quantitywhen: a) The income of an individual increases. (Draw for both normal & inferior goods)b) Assume that both the supply of bottled water and the demand for bottled water rise during the summer but that supply increases more rapidly than demand. c) If a popular celebrity involved in marketing a product.You are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 a. 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? ______units of X and ______units of Y b. What total utility will you realize? ______utils c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? _____units of X and ______units of Y d. Using the two prices and quantities for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Price of X Quantity Demanded of X $ $1 The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one, I start getting sick of it so the net total utility is starting to fall. I park in a car park and when I park there for 6 hours, it is getting more expensive so I prefer to leave early. Is this an example of diminishing utility?
- Quèstion 22 Marginal utility is positive and increasing when: O Total utility is increasing in an increased rate O Total utility is increasing in a decreased rate O Total utility is decreasing O Consuming unit 8 of any good) Suppose there are two goods, X and Y. The price of good X is $5, the price of good Y is $3, and your income is $60. Neatly graph your budget line and label the intercepts. (a) What is the slope of your budget line? (b) How many units of good Y do you give up per unit of good X? (c) Suppose the price of good X rises to $6, show what happens to the budget line and label any new intercepts. (d) What is the new slope of the budget line? How many units of good Y do you now give up per unit of good X? (e) Suppose the price of good X only rises to $6 once you have purchased six units of good X. In other words, it is $5 per unit for the first six units and $6 per unit thereafter. Make a new graph of this "kinked" budget constraint.The following table shows Ellie's utility from consuming slices of cake and cans of 7- Up. 5- Marginal Utility from Last Slice Slices Cans Marginal Utility from Last Can 4.5- of of Cake 7- Up 4- - 120 100 1 120 3.5- 2 60 3- 80 45 4 60 4 30 2.5- 40 5 20 6. 20 6 15 2- Suppose Ellie has $3 per week to spend on cake and 7- Up and that the price of a slice of cake is $0.50. 1.5- 1- 1.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $0.50. Label this point 'A'. 0.5- 0- 2.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $1.00. Label this point 'B'. 2 3 4 Quantity of 7-Up 3.) Use the line drawing tool to connect the dots to form Ellie's demand curve. Properly label this line. Carefully follow the instructions above, and only draw the required objects. O -2 3 Price of 7-Up
- QUESTION 7 Assume the following is the budget equation for Courtney who spends her income between music concerts and movies: 86 Music Concerts + 85 Movies = 7216 If Music Concerts are measured on the vertical axis, what would be the slope of the budget line ? 2Consider the following graph, which shows the relationship between an individual's income and the number of times he or she eats out each month. QUANTITY (Dinners out per month) 20 10 16 14 12 O 7 INCOME (Thousands of dollars per month) 10 Brian ? Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Crystal. According to the graph, Crystal's income is has Suppose Crystal's friend Brian has an income of $2,000 per month and has 4 dinners out per month. $8,000 $8,000 per month $16 per month $16 and she7
- 1.Assume that you have total utility of 0,50,80,95 and 95 when you consume zero to 4 units of ice- cream cones. Please say how many ice-cream cones which maximize your utility using marginal utility, marginal net utility and total net utility concepts.Unit price of ice-cream cone is $15.Typed and correct answer please. I will raThe diagram shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam? 40 32 24 16 8 4 8. 12 16 20 24 Coffee (pounds per week) OA. 40 gallons of gasoline and 0 pounds of coffee. B. 32 gallons of gasoline and 4 pounds of coffee. OC. 8 gallons of gasoline and 8 pounds of coffee. OD. 16 gallons of gasoline and 16 pounds of coffee. OE. All combinations except (D) are available to Sam. Gasoline (gallons per week)