The following is a table showing Erica's marginal benefit from purchasing bottles of soda and bottles of iced tea from a grocery store. Quantity of Soda (in bottles) 1 2 3 4 5 Marginal Benefit of Soda (in dollars) 24 18 12 6 3 Quantity of Iced Tea (In bottles) 1 2 3 4 5 Marginal Benefit of Iced Tea (in dollars) 24 18 12 6 3 A. What is Erica's total benefit from purchasing 2 bottles of soda and 1 bottle of iced tea? Show your work. B. Assume the price of a bottle of iced tea is $5. Calculate the total consumer surplus if Erica purchases 3 bottles of iced tea. Show your work. C. Now assume the price of a bottle of soda is $3 and the price of a bottle of iced tea is $6. Erica spends her entire budget of $30 on bottles of soda and iced tea. i. Explain why Erica does not maximize her benefit when she purchases 2 bottles of soda and 4 bottles of iced tea. Use marginal analysis to explain your answer.

The following is a table showing Erica's marginal benefit from purchasing bottles of soda and bottles of iced tea from a grocery store. Quantity of Soda (in bottles) 1 2 3 4 5 Marginal Benefit of Soda (in dollars) 24 18 12 6 3 Quantity of Iced Tea (In bottles) 1 2 3 4 5 Marginal Benefit of Iced Tea (in dollars) 24 18 12 6 3 A. What is Erica's total benefit from purchasing 2 bottles of soda and 1 bottle of iced tea? Show your work. B. Assume the price of a bottle of iced tea is $5. Calculate the total consumer surplus if Erica purchases 3 bottles of iced tea. Show your work. C. Now assume the price of a bottle of soda is $3 and the price of a bottle of iced tea is $6. Erica spends her entire budget of $30 on bottles of soda and iced tea. i. Explain why Erica does not maximize her benefit when she purchases 2 bottles of soda and 4 bottles of iced tea. Use marginal analysis to explain your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Give please answer every part and take a like
The Utility theory used in economics holds the belief that an item or service's utility is a measure of the satisfaction that the consumer will derive from the consumption of that particular good or service. Explain in a graph and short paragraph what it wold look like in today's Beef industry if the price of beef goes up Marginal Utility for beef consumption goes down..
16
Suppose Amanda spends all of her income of $1,000 on mascara (M) and chocolate (C) The prices per unit are PM = $5 and PC = $10. What is the maximum amount of chocolate that she can consume? a. 200 b. 5 c. 100 d. 1,000
The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 What is Jill’s marginal utility of consuming the 6th pancake? The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 Suppose that the price of pancakes is…
The table below shows the marginal benefit that Dan derives by consuming different quantities of tacos and soda .The price of a taco is $3 and the price of soda is $1. Quantity sodas Tacos Marginal benefits ($) Marginal benefits($) 1 10 18 2 8 12 3 6 6 4 4 3 5 2 1 6 1 0.6 Refer to the table above.If Dan consumes 3 tacos and 0 sodas -not necessary his optical choice- how much consumer surplus is he enjoying? a) $ 24 b) $ 27 c) $ 9 d) $6
Only typed answer and please don't use chat gpt and don't use table
The following table shows Ellie's utility from consuming slices of cake and cans of 7- Up. 5- Marginal Utility from Last Slice Slices Cans Marginal Utility from Last Can 4.5- of of Cake 7- Up 4- - 120 100 1 120 3.5- 2 60 3- 80 45 4 60 4 30 2.5- 40 5 20 6. 20 6 15 2- Suppose Ellie has $3 per week to spend on cake and 7- Up and that the price of a slice of cake is $0.50. 1.5- 1- 1.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $0.50. Label this point 'A'. 0.5- 0- 2.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $1.00. Label this point 'B'. 2 3 4 Quantity of 7-Up 3.) Use the line drawing tool to connect the dots to form Ellie's demand curve. Properly label this line. Carefully follow the instructions above, and only draw the required objects. O -2 3 Price of 7-Up
5. Leila currently buys 6 trips using public transportation with a marginal utility of 2, and 4 trips using ride-share with a marginal utility of 8. Suppose that the price of a trip through public transport is 12 and the price of a trip through ride share is 56. Is Leila currently maximizing her utility? Explain why or why not. If not, what is the optimal action to improve her utility?
7
Utils 18 12 MU per S: Price = $2 Movies MU per $: Price = $3 Ⓒ 37 Utils 12 MU per $: Price = $1 Books In the figure to the above, suppose the price of movies increases from $3 to $6. The increase in price shifts the benefit curve (marginal utility per dollar) for movies . For the initial quantity of 6 movies, the marginal than the marginal utility per dollar of books. (Enter your utility per dollar becomes utils, which is response as a whole number.)
Please help me quickly solve all they related