When a consumer is below the budget line, what does it mean?

Q: What are the conditions for utility maximization?

A: Utility refers to the satisfaction that a consumer gets from consumption of a good or service. It…

Q: How does a consumer determine how much of a good he or she will buy?

A: Consumer- Consumer is a person who purchases goods and services for the maximum satisfaction of…

Q: How should I spend my money in order to maximize my utility?”

A: Utility refers to the the satisfaction derived by consumption of a good/commodity or a service.

Q: Does the income level of a person change their view of substitute goods?

A: Two goods are substitutes of each other if both can be used in place of another. Similar and…

Q: What factors commonly influence a person’s daily buying choices? Select one of these and explain how…

A: These are the factors which influence a person’s daily buying choices: The income of the consumer:…

Q: What does the point on a budget line indicate in terms of prices?

A: # A budget line of the consume represents the price of the two goods and the budget of the income of…

Q: How would universal basic income affect consumer optimum?

A: Universal basic income is a scheme to provide a specific sum of money to all the citizens of a…

Q: Explain how a rational consumer decides which goods to buy. Note: you must discuss the role of…

A: The consumer prefers to buy the goods and services which provide them maximum satisfaction after its…

Q: (A) The unit in which the utility is calculated is ________  (B) Utility measures __________ of the…

A: # In economics we use the concept of utility for the measurement of the satisfaction received by the…

Q: Meaning of utility

A: It is a service that is offered to the general population, such as water, gas, or electricity.

Q: When ordering Big Macs, milkshakes, pizza, and other goods, how can you obtain the highest possible…

A: Total utility is the total amount of satisfaction received from consuming a good or service.…

Q: What is the meaning of the term utility?

A: The economics as a study is based upon the idea that the resources which the economies have tend to…

Q: What are the types of utility

A: Utility refers to the total satisfaction that is derived from consuming a good or a service. Utility…

Q: What is goods

A: In economics, there are two types are items sold in the market: goods and services. Both these items…

Q: It is a set of those combination of two goods which offer the consumer the same level of…

A: It is the Indifference set which act as an combination of the two goods which actually offers the…

Q: How would you define consumer behavior?

A: Consumer behaviour is very important for any firm to determine what goods and services need to…

Q: A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they…

A: Marginal utility per dollar is the amount of utility obtained by the consumer from spending one more…

Q: What are the factors which determine the choice that a person makes between buying a Honda Accord or…

A: The demand for the commodity is directly related to the income or purchasing power of the consumer.…

Q: would you rather maximize your total utility or your marginal utility?

A: Total Utility is the total satisfaction that a consumer receives when he consumes different units of…

Q: Do you think that you could consume less by refusingto buy some of the things you regularly buy? If…

A: Consumption refers to the process by which people spend their income on the purchase of goods and…

Q: What inferior goods that people buy?

A: Demand for inferior products is often determined by client behavior. Inferior smart refers to…

Q: What is Buying behavior?

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: If you buy less clothing because the price of clothing at your favorite store has gone up, what are…

A: Consumption of products and services in the economy by consumers is referred to as demand. Demand,…

Q: The above figure shows your budget line and indifference curves. What quantities of gasoline and…

A: A budget line is combination of stating the capacity of a an individual, firm, or business to make…

Q: What are the two things consumers can do with income?

A: Income is the financial gain earned during a particular period of time.

Q: what is a normal good?

A: Goods refers to the goods which are purchased by the consumer to satisfy their wants. Inferior goods…

Q: A utility-maximizing consumer buys so as to make goods. for all pairs of

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: Find the quantities of each product that the consumer should buy, subject to the budget, that will…

A: Answer to the question is as follows :

Q: Drinking five glasses of water consecutively declines your utility, why?

A: Utility is referred to as the want satisfying power of the commodity. Most economic theories based…

Q: How do you determine a budget for personal consumption?

A: A monthly budget is a structured financial planning tool that assists you in determining how much…

Q: I can't take another bite relate to utility

A: Utility is the level of satisfaction that a person gets by consumption of a good.

Q: Yona's utility function is U(x,y) = 4 *x +3 * y. %3D The price of one unit of x is 7, the price of…

A: here utility function U(x,y)=4x +3y also we have Px(price of good x)=7 and Py(price of good y)=5 so,…

Q: Suppose you have a budget of $12 and cost of a cola is $2 and sandwich is $4. Using this information…

A:

Q: What is Ceteris Paribus?

A: The subject economics is based on the market mechanism being the central element depends on the two…

Q: How does household made choices based on budget or their utility satisfaction? Justfiy

A: The first method is that, the households want to minimize their budget, subject to a specific level…

Q: How do we predict future utility?

A: Utility Concept In economics, utility refers to the complete satisfaction derived from the…

Q: How a price change affects consumer optimum?

A: In consumer's equilibrium, consumer optimum means getting a maximum level of satisfaction after…

Q: How utility is related to form utility?

A: Utility and Form utility are related as Utility is  mainly of four kinds.

Q: In what way may the income of the consumer affect his buying behavior?

A: The income of the consumer is the amount that the consumer has to spend on various goods and…

Q: What happens to the utility we get from each additional unit we consumed?

A: Utility refers to the want satisfying capacity of the individuals that includes the consumers those…