The following graph shows three possible indifference curves (I) for a consumer.DONUTSDEBCAKE1:Refer to Figure 21-7. When comparing bundle B to bundle C, the consumerO a. prefers bundle B because it contains more donuts.O b. is indifferent between the two bundles.O c. prefers bundle C because it contains more cake.Od. In order to compare bundle B to bundle C, we must know the prices of cake and donuts.

In this scenario, the consumer is indifferent between bundle B and bundle C because they both…

Answered: The following graph shows three…

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 2CQQ

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Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
In the diagram, assume the consumer whose indifference curves are shown is currently in consumer equilibrium at point a. Which of the following could lead to an optimal consumption bundle on indifference curve 13? Quantity of restaurant meals 80 70 60 B. 50 40 30 - 20 10 6. 8. 10 12 14 16 Quantity of rooms O A. an increase in income OB. a decrease in the price of restaurant meals OC. a decrease in the price of rooms OD. all of the above
Can you help me answer these 2 questions
Suppose that the following utility function is given (x,Y) xY. Which of the following is correct? OYis a good and X is a bad and indifference curve is positively sloped. X is a good and Y is a bad and indifference curve is negatively sloped. O Both X and Y are bads and indifference curve is negatively sloped. Both X and Y are goods and indifference curve is negatively sloped
Please see below. I just need help with the one I got incorrect which is the a graph.
3
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-uppose John is currently at point A on the indifference curve to the right. If he moves to point B, en A. the level of utility remains constant because the marginal utility of pizza increases and the marginal utility of Pepsi decreases. OB. the level of utility increases because the marginal utility of pizza increases. OC. the level of utility remains constant because the marginal utility of pizza decreases and the marginal utility of Pepsi increases. OD. the level of utility decreases because the marginal utility of Pepsi decreases. Pepsi (bottles per week) B Pizza (slices per week)
Assume Pat spends all of her allowance to purchase 4 apples and 4 candy bars. Pat's marginal utility of the fourth apple is 20 utils, and her marginal utility of the fourth candy bar is 40 utils. If an apple costs $1.00 and a candy bar $0.50, to maximize utility Pat should(A) purchase more apples and more candy bars(B) maintain the current purchase of 4 apples and 4 candy bars(C) purchase more apples and fewer candy bars(D) purchase fewer apples and more candy bars(E) purchase fewer apples and fewer candy bars
26. Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) oniy sodas because they are iess expensive D) the combination that gives him the same marginai utility per doillar spent on pies as on soda
Suppose that Reza buys two products and that the marginal utility of an additional carton of soy milk is 20 and its price is $1.25, whereas the marginal utility for an additional orange costing 50 cents is 7. Refer to the this information to answer this question. What can be deduced? Select one: O a. Reza should buy more soya milk. O b. Reza should reduce his consumption of soya milk. O c. Reza should divide his budget equally between soya milk and oranges. Od. Nothing can be deduced. Oe. Reza should buy more oranges.
Vinny consumes tacos and chicken wings. To keep his utility constant, he must consume more tacos if he consumes fewer chicken wings. This means that O Vinny's indifference curve for tacos and chicken wings must have a negative slope. Vinny's marginal utility from each good must be constant along his convex indifference curves for tacos and chicken wings. O the prices Vinny pays for tacos and chicken wings are always the same. O Vinny's marginal rate of substitution must be constant along his indifference curves for tacos and chicken wings.

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