Suppose that at current consumption levels an individual's marginal utility of consuming an extra sandwich is 10 whereas the marginal utility of consuming an extra coffee is 2. Then the MRS (of coffee for sandwiches) that is, the number of sandwiches the individual is willing to give up to get one more coffee is a 5

Q: If the average utility of good A is 15 and the average utility of good B is 25, you should: A. keep…

A: Average utility is an economic  measure which calculates or measures  average  satisfaction received…

Q: iuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his…

A: Marginal utility  Marginal utility is the happiness a consumer gains from having one more unit of an…

Q: Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the…

A: Utility is maximized when (MUs/Ps) = (MUo/Po) where S: Shoes and O: Outfit, and MU = Change in TU /…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: W² 40 Hatfield and McCoy hate each other. The only good they both consume is whiskey. Hatfield's…

A: The utility function for Hatfield is given as The utility function for McCoy is given as The Sheriff…

Q: Suppose that Omar's marginal utility for cups of coffee is constant at 5.5 utils per cup no matter…

A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…

Q: Give typing answer with explanation and conclusion  Suppose that a consumer's utility function is…

A: Given  Consumer utility function: U=x5y3z3 Here x is the consumption of mineral water, y is the…

Q: A consumer who maximizes utility enjoys eating free hot dogs. Calculate the consumer's marginal…

A: Marginal Utility is the additional satisfaction derived by the consumption of one more unit of given…

Q: Question 1. Below are the choices made by Albert, Brittney, and Calvin when choosing from different…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: soda). Furthermore, assume that it is impossible for loe to spend more than his budget (that is, his…

A: The optimal consumption rule says that when a consumer maximizes utility, the marginal utility per…

Q: = 5) Marie-Antoinette has preferences for consumption of pots of tea (x) and slices of cake (y) that…

A: A utility function in economics is a mathematical expression that expresses the level of enjoyment…

Q: The following table shows Madison's utility from consuming popcorn and Coke. Suppose that Madison…

A: Madison's income is $14.00The price of popcorn is $4.00 per box and the price of Coke is $3 per can.…

Q: Suppose that both goods x and y are normal goods and the budget line shifts From BL1 to BL2. Which…

A: A consumer optimal consumption bundle occurs at the tangency point of budget line and indifference…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Given Information: The budget of Person A is £21 to spend on toothbrushes and toothpaste. The price…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Income and consumption curve shows the relationship between the level of income and consumption of…

Q: If this consumer has $11.00 to spend on cans of beer and slices of pizza in any given week, then…

A: Utility refers to the satisfaction attained from the consumption. The aim of the rational consumer…

Q: Adrienne and Sarah consume pizza Z and cola C. Their utility functions and marginal utilities are,…

A: Given  The utility function of Adrienne: UA=ZACA              ... (1) The utility function of Sarah:…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A:

Q: lives on an island economy and consumes only coconuts. Her utility function is given by u= √C, C is…

A: Utility is the satisfaction which is derived from consumption of good.

Q: Refer to the figure below. The marginal utility of consuming the 2nd apple is: Number of Apples…

A: Utility is the wants satisfying power of commodity ,  and the when person consume one more…

Q: What is the the total utility of consuming five units of the B good? What is the total utility of…

A: The utility is the wants satisfying power of goods and services.  Marginal utility is the additional…

Q: Why in this question is consumer surplus equal to the utility gained from consumption?

A: The consumer surplus concept is derived from and based on the diminishing marginal utility law.…

Q: do you agree that we have such a diminishing marginal utility of income just like we have a…

A: The law of diminishing marginal utility clarifies that as an individual devours a thing or an item,…

Q: Let's assume that Justin Trudeau, who lives in Ottawa, is purchasing corn (C) and dandelion (D) in…

A: The utility is maximum when both goods are purchased at equal marginal utility per dollar.

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: Homer Simpson has a budget of $100 allocated for the consumption of burgers and donuts. If the price…

A: Budget(M)= 100 Burger (B) price(p1) =% 5 ,and Donut (D) price(p2)=%2.50 Budget constraint, M=…

Q: Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas…

A: Marginal utility is the change in utility with an additional unit of consumption.  MU per dollar is…

Q: c) How many tubes will he buy if the current price is £0.50 per tube? d) Find Andrea's…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: Units of the Good 0 1 2345678 Total Utility Total Utility of X of Y 0 0 620 1740 1120 3030 1500 3960…

A: Utility maximization is an economic theory that states that individuals and organizations make…

Q: Question 1 (Choice). Emie has two cell phones and obtains positive utility from talking on both. His…

A: Budget constraints shows the relationship between the two goods, their prices and the income of…

Q: Every day Noora spends her lunch money consuming apples, at RO1 each, and Oranges, at RO2 cach. At…

A: Nora will maximize her utility when the last rupee spent on both the goods apples and oranges should…

Q: Carol needs to decide how to spend her wealth on  sh and chicken. For Carol, 1 lb of  sh is…

A:

Q: Columns 1 through 4 in the following table show the marginal utility, measured in utils, that…

A: Marginal utility is the additional satisfaction a consumer receives from the consumption of the…

Q: Which of the following consumption possibilities will be selected in the first place in the pursuit…

A: The consumption–possibility frontier (CPF) represents two different products of different amounts…

Q: a) In a graph, draw total utility as a function of number of toothpaste tubes, assuming that Andrea…

A: "Since you have asked multiple parts, we will answer only first part for you. If you have any other…

Q: You like to eat apples and carrots. The graph shows your budget for both of these items at Harris…

A: Here we have find the optimal Consumption Point given the graph and tableOptimal Point: The optimal…

Q: The table shows Jill’s utility schedule for pancakes and coffee   # pancakes total utility from…

A: Marginal utility: It is the utility that a consumer derives from the consumption of an additional…

Q: Amadea spends all her income on pizza, chocolate milk, and music streams. The price of pizza is $4…

A: Answer: Given, Price of pizza PP=$4 per slicePrice of chocolate milk PCM=$2 per bottlePrice of music…

Q: (b) Show, using algebra, that Ronald’s two budget lines intersect at the bundle (x, y) = (5.5, 8.7).

A: Budget Line:The budget line serves as a visual representation of the budget constraint, showing the…