Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 13, Problem 1IAPA
To determine
To explain:
The meaning that can be derived from the
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Aria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is $0.90/unit. Is Aria maximizing her utility?
How many drink(s) and Big Mac(s) should you purchase to reach consumer optimum?
All goods have diminishing marginal utility, but for some goods (or activities), marginal utility falls quickly as you consume more, while for others, marginal utility falls slowly. Can you think of examples of goods that you continue to enjoy a great deal as your consumption increases? Can you think of goods for which your marginal utility decreases rapidly?
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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- Marginal utility is defined as the increment to total utility that results from the consumption of one more unit of some good or service. The equation for marginal utility is: Group of answer choices The change in total utility / the change in quantity The change in total utility / the change in total revenue The change in quantity / the change in total utility Total revenue / quantity demandedarrow_forwardAn individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate the demand curve for wine.arrow_forwardImagine, we are in ancient Greece. Praxilla lives in Athens and derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem, 27 units of marginal utility from her second poem, 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her first three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumbers consumed. A poem costs three bronze coins, but a cucumber only costs one bronze coin. Praxilla has 18 bronze coins. 1. Sketch Praxilla’s budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18…arrow_forward
- As organic vegetables increase in popularity, Marcy finds herself eating more and more organic kale. Use the table to answer the two questions. Units of organic kale consumed by Marcy Total utility of the units consumed Marginal utility of each additional unit consumed 1 10 – 2 18 8 3 – 6 4 28 4 5 30 – 6 28 −2 What is the total utility that Marcy obtains from consuming three units of organic kale? total utility: What is Marcy's marginal utility for the fifth unit of organic kale? marginal utility:arrow_forwardCalculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places) The Price of wine is 4 The Price of Cheese is 0.95 The Consumer's budget for wine and Cheese is 16.73 GLASSES OF WINE 1 2 3 4 5 (WINE) TOTAL UTILITY 60 144 199 252 303 The Quantity of Wine this consumer would buy to maximize utility is : The Quantity of Cheese this consumer would buy to maximize utility is What is the consumer's Total Utility when optimized: (WINE) MARGINAL UTILITY 55 51 (WINE) MARGINAL UTILITY/dollar WEDGES OF CHEESE 1 2 3 4 5 (CHEESE) TOTAL UTILITY 20 53 69 83 96 (CHEESE) MARGINAL UTILITY 16 13 (CHEESE) MARGINAL UTILITY/dollararrow_forwardThe table below shows the total utility from consuming different quantities of tacos. Use the information below to find the Marginal Utility for each quantity. The marginal utility obtained by consuming the second taco is 9. (enter a number) Quantity Total Utility 0 1 2 3 4 5 (enter a number) The marginal utility obtained by consuming the fourth taco is 0. 0 110 185 245 290 295arrow_forward
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