Question 3The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.Units of XTotal Utility9.Units of YTotal Utility16215283193.364214.4052242How many units of the two products will the consumer buy to get maximum utility?O 2 of X and 3 of YO 2 of X and 2 of YO 3 of X and 4 of YO 1 of X and 4 of YA Moving to another question will save this response.

Consumer will maximize utility at a point where marginal utility per dollar of two goods are equal.

Question 3 The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. Units of X Total Utility Units of Y Total Utility 16 2 15 28 3 19 3. 36 14 21 4. 40 5 22 42 How many units of the two products will the consumer buy to get maximum utility? O 2 of X and 3 of Y O 2 of X and 2 of Y O 3 of X and 4 of Y O 1 of X and 4 of Y A Moving to another question will save this response. Chp

Question 3 The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. Units of X Total Utility Units of Y Total Utility 16 2 15 28 3 19 3. 36 14 21 4. 40 5 22 42 How many units of the two products will the consumer buy to get maximum utility? O 2 of X and 3 of Y O 2 of X and 2 of Y O 3 of X and 4 of Y O 1 of X and 4 of Y A Moving to another question will save this response. Chp

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements describe correct patterns for total and marginal utilities? (Select all correct answers) □ A. Marginal utility decreases but cannot become negative. □ B. Total utility increases faster and faster as consumption increases OC. Total utility increases as consumption increases but eventually declines O D. Marginal utility is greater than total utility O E. Marginal utility decreases as consumption increases
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3. Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup, no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee? *use tables and/or graphs if possible, please original work
When deciding which goods to consume, you should choose to consume the good with the highest marginal utility per dollar. O False, you should choose a combination of goods with equal marginal utility per dollar. O True, consumers are maximizing marginal utility and should always choose the highest amount per dollar. O False, you should buy the cheapest good to get a higher level of total utility. True, with diminishing marginal returns consuming more goods will reduce the marginal utility per dollar.
0 2 O 4 6 08 D Scones 10 1 2 3 4 5 Total Utility 10 18 24 Refer to Table 6.3, which shows the total utility and marginal utility derived from the consumption of scones. The first column of the table represents the number of scones a consumer consumes in a day. The second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. The total utility derived from the consumption of one scone is units. 28 30 Marginal Utility 6 2
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Explanation it correctly and details
1-The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units? 50 5 12 35 2-Consumer equilibrium occurs when: 1. the entire budget is spent; 2. marginal utility from each good should be equal; 3. marginal utility per dollar from each good should be equal. only 3 is correct only 1 and 2 are correct only 1 and 3 are correct all 1, 2 and 3 are correct
22. Refer to above figure, which of the following statements is false? Quantity of Coffee CD₂. B E Quantity of Tea Clear my a. The consumer prefers F to B, but F costs more U₂ b. Is indifferent between C and B, but B costs less O c. Prefers D to C, and they cost the same O d. Is indifferent between E and F, and they cost the same choice
Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is $10 and the price of each dinner is $20. Movies Marginal Utility Per Month Per Movie 1 2 3 4 Multiple Choice O 4; 6; 2 O 3:2; 6 If Taylor eats out 3 times a month, Taylor will watch O 4; 6; 1/2 60 50 20 O 3; 4; 4 5 Dinners Out Marginal Utility Per Month Per Dinner 1 2 3 4 150 140 120 100 movies, and have marginal utility per dollar of from eating out and a marginal utility per dollar of from going to the movies.
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