1. Calculate the marginal utility per dollar for sodas. The table below shows the marginal utility fromconsuming mini pizzas and sodas. If pizzas and sodaare the only goods and the price of a mini pizza is $1and the price of a soda is $.50, how many of each willmaximize utility if you have $4 for lunch?NumberNumberMarginalUtilityMarginalUtilityofofPizzasSodas11016.3414415

Given : The price of a mini pizza is $1 The price of a soda is $.50 Money income = $4

Answered: The table below shows the marginal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6) Your income rises from $2,000a year to $10,000 and your purchases of beer change from 10 to 40. What number below most closely approximates your income elasticity over this range? A) 1 B) 1.25 C) 0.75 D) 0.25
qty per week Marginal Utility of songs Marginal Utility of Cookies 1 15 25 13 20 3 12 16 4 11 13 10 11 6. 9 10 7 8. 7 8. 6. 7 10 Above is the utility of Sara for song and cookie consumption. If the price of a song is $2 and the price of a cookie is $1, how many cookies and songs will sara consumer? Why?
18. If the income elasticity of bikes is 0.72, then bikes are A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.
gold Compare and contrast the income elasticity of demand for gold bracelets (ngola bracelets) and the income elasticity of demand for shampoo (n Explain using 1-2 sentences. Shampoo). Which product's income elasticity of demand is higher?
Alex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to 8 a month and decreased his consumption of cakes from 12 to 6 a month. Calculate his income elasticity of demand for CD using point method. * Your answer
10. What happens to the demand curve for an inferior good if a consumer's income increases? Show me using a diagram, please.
A consumer who has spent all of her income on clothes and food and finds that her marginal-utility for clothes is 16 and marginal-utility for food is 20. If the price of clothes and food are both $4 . What should the consumer do for purchases to maximize total utility A. purchasing more clothes and less food B. purchasing more of both commodities C. purchasing less of both commodities D. purchasing more food and less clothes
Answer the following questions regarding elasticity When Jake’s income increases from $400 to $600 per week, his noodles consumption drops from 6 to 2 packets/week. What is the income elasticity of demand for noodles?
impacts of marginal utility. Imagine that you are a seller of phones: How can you increase the consumer demand curve by helping increase the marginal utility for consumers? Detail specific steps to take and provide examples.
2) Ernesto is looking to purchase a new vehicle as his income has increased from $2,000 per month to $3,000 per month, so his purchase increases from 0 to 1 vehicle. He see's a new Mercedes Benz that decreased its price from $45,000 to $42,000. What is Ernesto's income elasticity of demand for a Mercedes Benz vehicle?
Suppose the cross-price elasticity of café latte to the price of milk is -0.6. If the price ofmilk rises by 20%, what happens to the quantity of lattes demanded? What can you say aboutthe relationship of these two goods?
What is the cross price elasticity?

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