Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of the following combinations is on the consumer's budget line? Multiple Choice 8A and 10B 4A and 5B 6A and 3B 3A and 6B

Q: Explain and differentiate preference and utility.

A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…

Q: budget line? Multiple Choice 8A and 108 4A and 58 6A and 3B

A: Here, we can calculate the given as follow;

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: Here we calculate the combination of consumer budget line by using the given data and choose the…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Consumer equilibrium:  A consumer attains equilibrium at a point where the per-dollar marginal…

Q: 8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is…

A: Answer:1. The correct answers are:  His income increased while the prices of baseball and symphony…

Q: 6. A consumer has an expenditure function given by E = Ū(²+¹). When the consumer has an income of…

A:

Q: How do your total and marginal utility change as you stay at home watching the same TV show (not…

A: The objective of the question is to understand how total and marginal utility change as a person…

Q: True/False Marginal utility keeps falling with the each additional consumption of a good or…

A: Economists uses the concept of marginal utility to determine how much of a product consumers are…

Q: A consumer has income of 15000. Masks costs $35 per mask, and sanitizers cost $70 per bottle.…

A: Budget constraint represents all combination of goods and services that consumer is able to buy if…

Q: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

A: Given: Frank is making purchases of products C and D in profit maximizing amounts. Price of C=$6…

Q: A consumer has an expenditure function given by E = Ū(P +Pr). When the consumer has an income of…

A: The maximum utility can be defined as the highest level of satisfaction, well-being, or benefit that…

Q: Jessica has an income of $216 and she is buying apple cider and books. Apple cider is $8 per unit…

A: Bundle Q(A) MU/$(A) Q(B) MU/$(B) A 0   9   B 3 6.13 8 5.13 C 6 5.38 7 5.21 D 9 4.63 6 5.29…

Q: Greg has the following utility function:u=x63x937. He has an income of $66.00, and he faces these…

A: Compensating variation is the additional money that the consumer would need to reach its initial…

Q: Becky likes going to the ballpark to watch baseball, and she also is fond of going to the theater to…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: EXERCISE 6 If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy…

A: Utility function : U(G , N ) = 30G + 2N  If Ginna Spends half of her budget (150/2 ) , she could buy…

Q: A consumer derives all of his utility from a single good; he devotes his entire income $10 to…

A: The concept of Equivalent Variation (EV) measures the change in income required to maintain a…

Q: Reid has the following utility function. U = 24m1/3d1/2  where U is Reid's total utility, m is the…

A: (a) U = 24m 1/3 d 1/2 – α (m+0.6 d -25) MU m = 1/3*24m-2/3 d 1/2 – α*1 MU d= ½ *24 m 1/3 d-1/2 -…

Q: 11) A consumer's preferences for food (F) and clothing (C) are given by U(F,C) = F0.2C 0.8. The…

A: The consumer equilibrium is the point where the slope of budget line is equal to the slope of the…

Q: You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5.    Marginal utility…

A: Maximum utility  Utility maximization is the desire for the greatest amount of pleasure from one's…

Q: a) Write down Milo's budget equation and draw the corresponding budget line. Clearly label the axes…

A: Consumer M spends his income on stamps and maple candy.Symbolically,Income = I = 27Stamps = SMaple…

Q: Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford to buy two…

A: It is given in the question that when Pam purchases 8 tshirts ( s) then the entire budget is…

Q: Susan buys bagels and falafels. The price of a falafels is £1 and the price of a bagels is £3. Susan…

A: Price of F=1Price of B=3M=12Budget constraintPF*F+PB*B=<M1*F+3*B=<12

Q: Shen likes going to the ballpark to watch baseball, and he also is fond of going to the theater to…

A: Budget constraint depicts the combination of two goods that can be afforded by a consumer, given the…

Q: Total Utility of Digital Apps per Digital Apps per Period Period (utils) 0 1 2 3 4 5 0 50.0 95.0…

A: We have to find the optimum consumer bundle. and expenditure on it.Optimum Consumer Bundle: When a…

Q: Based on the figure, what point will give the highest level of satisfaction? Point G, Y, D or B?…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of goods…

Q: Write down her budget constraint using the numbers above. b) Illustrate her budget line with a…

A: Budget constraint: PT * T + PM * M = I where, PT is the price (cost) of tennis games PM is the price…

Q: Paul has been babysitting for a family friend over the summer. In total, he has earned $200. Assume…

A: Marginal utility refers to the additional utility that obtained due to increasing the consumption by…

Q: 3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A…

A: Given utility function is form of perfect substitute utility function, perfect substitute goods…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: the figure below shows a consumer maximizing utility at two different prices (the lett panel) and…

A: Whenever the price of a good increases, there are two effects that take place. One is the…

Q: If the price of food is $20, the price of clothing is $80, and annual income is $60,000, determine…

A: To determine the optimal combination of food and clothing the consumer will purchase, we need to set…

Q: If marginal utility is declining but still positive, total utility is increasing.  True or false…

A: The utility is the satisfaction received from consuming a good or service.

Q: If at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at…

A: Given  Total Utility when 1 unit is consumed TU(1)=25 Marginal utility of second unit MU(2)=20 Total…

Q: utinty Total Number Consumed Utility 1. 11 3 18 4 24

A: The given table shows relationship between the number of units consumed of candy and total utility…

Q: As consumer has more and more units of a goods, its marginal utility to him (a) Declines (b) Rises…

A: # Marginal utility is the satisfaction derived from the consumption of an additional unit of a good…