Question 1 Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility from owning a toothbrush, but for the consumption of every tube of tooth paste he gains a utility of 2 utils - but only if he owns a tooth brush. Without a tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea needs to buy a new one. The current price of tooth brushes on the market is £5 and the current price for tooth paste is £1 per tube. Assume that Andrea aims to maximise consumer surplus. a) In a graph, draw total utility as a fundion of number of toothpaste tubes, assuming that Andrea buys 1 tooth brush. b) How many tubes will Andrea buy if he wants to maximise consumer surplus, assuming that Andrea can buy any amount of tooth brushes? What is Andrea's total consumer surplus? c) How many tubes will he buy if the current price is £0.50 per tube?
Question 1 Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility from owning a toothbrush, but for the consumption of every tube of tooth paste he gains a utility of 2 utils - but only if he owns a tooth brush. Without a tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea needs to buy a new one. The current price of tooth brushes on the market is £5 and the current price for tooth paste is £1 per tube. Assume that Andrea aims to maximise consumer surplus. a) In a graph, draw total utility as a fundion of number of toothpaste tubes, assuming that Andrea buys 1 tooth brush. b) How many tubes will Andrea buy if he wants to maximise consumer surplus, assuming that Andrea can buy any amount of tooth brushes? What is Andrea's total consumer surplus? c) How many tubes will he buy if the current price is £0.50 per tube?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Please help me to answer this question, thanks
![开始插入
贝面布局
引用
审阅
视图
开发工具
特色功能
Q查战命令,搜索模板
Q未同步
A A 6
U-A-X X, A 2- A- A
New Rom: 12
,m、三,EE X- A,
AaBbCcDd AaBbCc AaBb(AaBbC
三■=正一m,9.
EA
标题3 文字排版,查找替换选
EX
标题1
标题2
Question 1
南 文翻譯
Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not
receive any utility from owning a toothbrush, but for the consumption of every tube of
tooth paste he gains a utility of 2 utils - but only if he owns a tooth brush. Without a
tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after
consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea
needs to buy a new one. The current price of tooth brushes on the market is £5 and
the current price for tooth paste is £1 per tube. Assume that Andrea aims to
maximise consumer surplus.
a) In a graph, draw total utility as a fundion of number of toothpaste tubes,
assuming that Andrea buys 1 tooth brush.
b) How many tubes will Andrea buy if he wants to maximise consumer surplus,
assuming that Andrea can buy any amount of tooth brushes? What is
Andrea's total consumer surplus?
c) How many tubes will he buy if the current price is £0.50 per tube?
d) Find Andrea's income-consumption curve for tooth paste tubes for incomes
between £0 and £21, assuming a price of £1 per tube.
23日 2日= e6
100% -
三值:14.9厘米 行:23列1字数1140 ]拼检章 ]文档校对
ID](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa032a560-3a80-4f5f-9ccb-16b6bf718aee%2Fc75243e3-8544-4184-8dd7-0af353506e38%2F44ovymk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:开始插入
贝面布局
引用
审阅
视图
开发工具
特色功能
Q查战命令,搜索模板
Q未同步
A A 6
U-A-X X, A 2- A- A
New Rom: 12
,m、三,EE X- A,
AaBbCcDd AaBbCc AaBb(AaBbC
三■=正一m,9.
EA
标题3 文字排版,查找替换选
EX
标题1
标题2
Question 1
南 文翻譯
Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not
receive any utility from owning a toothbrush, but for the consumption of every tube of
tooth paste he gains a utility of 2 utils - but only if he owns a tooth brush. Without a
tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after
consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea
needs to buy a new one. The current price of tooth brushes on the market is £5 and
the current price for tooth paste is £1 per tube. Assume that Andrea aims to
maximise consumer surplus.
a) In a graph, draw total utility as a fundion of number of toothpaste tubes,
assuming that Andrea buys 1 tooth brush.
b) How many tubes will Andrea buy if he wants to maximise consumer surplus,
assuming that Andrea can buy any amount of tooth brushes? What is
Andrea's total consumer surplus?
c) How many tubes will he buy if the current price is £0.50 per tube?
d) Find Andrea's income-consumption curve for tooth paste tubes for incomes
between £0 and £21, assuming a price of £1 per tube.
23日 2日= e6
100% -
三值:14.9厘米 行:23列1字数1140 ]拼检章 ]文档校对
ID
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education