EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
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Question
Chapter 4, Problem 4.14P
To determine
(A)
Tofind:
Whether there could be a diminishing MRSH,M for the given utility function.
To determine
(B)
To plot:
On the graph the typical indifference curve, represented by U1 and on the same graph, plot a second indifference curve represented by U2 being U2>U1.
To determine
(C)
To evaluate:
The number of items of each type that the consumer will buy in each week for maximizing the utility, and plot that on the graph.
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A consumer buys Bread (B) and Milk (M) each week at price of 20 and 16 respectively. Suppose that the consumer's current consumption of Bread and Milk is giving him MUBread = 80 and MUMilk = 70. Is the consumer buying the utility-maximizing combination of bread and milk? If not, how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain.
Please answer fast
Suppose that Lynn enjoys sugar in her coffee. She has very particular preferences, and she must have exactly three spoonfuls of sugar for each cup of coffee. Let C be the number of cups of coffee, and S be the number of spoonfuls of sugar. Also, let PC be the price of a cup of coffee. Suppose Lynn has $12 to spend on Coffee and Sugar. Also, the price of Sugar is $.20 per spoonful.
Graph Lynn’s Price consumption curve for prices, PC = $.60, PC = $.90, and PC = $1.80. Please put the number of cups of coffee (C) on the horizontal axis, and the number of spoonfuls of Sugar (S) on the vertical axis. Be sure to graph each budget constraint associated with each price of Coffee, identify Lynn’s optimal bundle on each budget constraint, and make sure your graph is labeled carefully and accurately.
Chapter 4 Solutions
EBK MICROECONOMICS
Ch. 4 - Prob. 1RECh. 4 - Prob. 2RECh. 4 - Prob. 3RECh. 4 - Prob. 4RECh. 4 - Prob. 5RECh. 4 - Prob. 6RECh. 4 - Prob. 7RECh. 4 - Prob. 8RECh. 4 - Prob. 9RECh. 4 - Prob. 10RE
Ch. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Prob. 4.12PCh. 4 - Prob. 4.13PCh. 4 - Prob. 4.14PCh. 4 - Prob. 4.15PCh. 4 - Prob. 4.16PCh. 4 - Prob. 4.17PCh. 4 - Prob. 4.18PCh. 4 - Prob. 4.19PCh. 4 - Prob. 4.20PCh. 4 - Prob. 4.21PCh. 4 - Prob. 4.22PCh. 4 - Prob. 4.23PCh. 4 - Prob. 4.24PCh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Prob. 4.28PCh. 4 - Prob. 4.29PCh. 4 - Prob. 4.30P
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- Question 1 A consumer purchases two goods, food and clothing. The utility function is U(x, y) = √xy. where x denotes the amount of food consumes and y the amount of clothing. The marginal utilities are MUX = √y/(2√x) and MUX=√x/(2√y). The price of food is Px, the price of clothing is Py, and income is I. a) Show the equation for the demand curve for food is x = 1/(2Px). b) Is food a normal good? Draw D₁, the consumer's demand curve for food when the level of income is I = RM120. Draw D₂ the demand curve when I = RM200.arrow_forward2. Vibha consumes three goods X, (shirts), X, (food in pounds), and X, (shelter in square feet). Vibha's utility function is given by: U (X,, X, X,) = 5ln Xt 3ln X + 2ln X, where In (x) or log. (x) is the natural logarithm. Vibha's weekly income is $100. Let the price of X, = P, = $10, the price of X, = P, = $2, and the price of X, = P; = $4. What is the equation for Vibha's budget constraint? а. b. |How many shirts, pounds of food, and square feet of shelter, will Vibha consume, as a rational consumer?arrow_forwardA consumer buys Bread (B) and Milk (M) each week at prices of Rs. 10 and Rs. 8 respectively. Suppose that the consumer's current consumption of Bread and Milk is giving him MUBrend = 80 and MUMia = 70. Is the consumer buying the utility-maximizing combination of bread and milk? If not, how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain.arrow_forward
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