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
35. If an increase in income causes the quantity demanded of a good to fall, then the goodis:(a) A normal good(b) An inferior good(c) A substitute good(d) A complement good
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..
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.
Give 5 examples each of inferior goods and normal goods
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
a. You are using a low quality mobile phone which costs low and you can afford it within yourcurrent income. Now suppose your income increases then what effect will it have on yourconsumption of this type of mobile phone? Explain it with diagram. b. If prices of cricket ball increased then what effect will it have on bats? What type of elasticityis this? Explain in detail with diagram.
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?

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