Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by . Your marginal utility function for apples is . Your marginal utility function for oranges is U (A,O) = A0³ MUA = 0³ MUO = 3A0² . Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. Let's say the price of oranges rises to $10/pound of oranges. Comparing the utility you receive from your old consumer equilibrium bundle to your new consumer equilibrium bundle, how does the increase in the price of oranges impact your level of satisfaction as a consumer? You utility increases due to the price change You utility decreases due to the price change You utility is unaffected by the price change You utility could either rise or fall due to the price change

Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by . Your marginal utility function for apples is . Your marginal utility function for oranges is U (A,O) = A0³ MUA = 0³ MUO = 3A0² . Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. Let's say the price of oranges rises to $10/pound of oranges. Comparing the utility you receive from your old consumer equilibrium bundle to your new consumer equilibrium bundle, how does the increase in the price of oranges impact your level of satisfaction as a consumer? You utility increases due to the price change You utility decreases due to the price change You utility is unaffected by the price change You utility could either rise or fall due to the price change

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Camara's utility function between Bread (X1) and Pasta (X2) is: U(X1,X2) = X1 + 2X2. Sarr's utility function between these two goods is: U(X1,X2) = 6X1 + 6X2. Sarr values Pasta more than Camara. True False
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Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by Your marginal utility function for apples is . Your marginal utility function for oranges is U (A, O) = AO³ MUA = 0³ MUO 3A0² . Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. = When you set up the optimal decision rule for your consumer problem, which of the following statements best describes how much you will buy of apples and oranges at your consumer equilibrium? For each peck of apples, you will buy 1/3 pounds of oranges. For each peck of apples, you will buy 1 pounds of oranges. O For each peck of apples, you will buy 3 pounds of oranges. O For each peck of apples, you will buy 6 pounds of oranges.
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Can you help me answer this macroeconomics theory question