The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive quantities of products A and B. Fill in the MU/P column for each product. Instructions: Enter your answers rounded to one decimal place. Units of Good A 1 2 3 4 5 6 7 Price of Good A = $6 MU of Good A, utils 72 66 60 54 48 42 36 MU/P for A Units of Good B 1 2 3 4 5 6 7 Price of Good B = $4 MU of Good B, utils 48 42 36 30 24 20 12 MU/P for B If Ross has an income of $64, how many units of each will he purchase to maximize his utility? Instructions: Enter your answers as a whole number. units of good A units of good B

The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive quantities of products A and B. Fill in the MU/P column for each product. Instructions: Enter your answers rounded to one decimal place. Units of Good A 1 2 3 4 5 6 7 Price of Good A = $6 MU of Good A, utils 72 66 60 54 48 42 36 MU/P for A Units of Good B 1 2 3 4 5 6 7 Price of Good B = $4 MU of Good B, utils 48 42 36 30 24 20 12 MU/P for B If Ross has an income of $64, how many units of each will he purchase to maximize his utility? Instructions: Enter your answers as a whole number. units of good A units of good B

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The term “law of diminishing marginal utility” used in explaining downward sloping demand curves, others things constant, is best described by which of the following statements? The total satisfaction you obtain from consuming a good tends to fall. The average satisfaction you obtain from consuming a good tends to fall. The additional satisfaction you obtain from consuming an additional unit of a good tends to fall. The total satisfaction you obtain from the good tends to rise.
Tom has a budget of $44 per week that he can spend on Ramen and/or steak burritos. Each burrito costs $10 and each bowl of Ramen is $6. Using the table below, what combination of these two goods will maximize Tom’s utility given his budget constraint?
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The principle of diminishing marginal utility says that people don't enjoy consuming more of a good. True or False and Explain the choice
Q.24 Following schedule shows total utility. If the price per unit is 3, then how many units of the good the consumer is willing to buy: Units consumed Total utility (7) 1 8 3 10 4 10 (a) 2 units (b) 3 units (c) 6 units (d) 0 unit
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The total utility of 3 units of good X is 22 and the total utility of 5 units of good X is 28. The marginal utility of the 5th unit of good X is equal to A) 6 B) 50 C) 22 D) O E) none of the above Becky's income increases from $2,000 per week to $2,400 per week. As a result, Becky decides to increase her demand for good x by 25 percent. Please fill in the blanks: We can conclude that good x is a(n) good and that Becky's demand for good x is Select one: a. normal; income elastic. b. inferior; price inelastic. C. basic; income elastic. d. luxury; income inelastic. e. none of the above.
explain how utility analysis leads to the law of demand.