ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 6, Problem 3P
To determine
The circumstances under which MU is negative and TU is positive.
Concept Introduction:
Law of Diminishing
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Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the worksheet) and wants to use these data to decide how to rationally spend the money she has. The price of pizza is $2.00 and the price of soda is $2.00
question 9
(a) given these prices and your worksheet calculations, what is the first product lee will buy? (b) would lee ever buy four slides of pizza? Why/why not?
question 10Given the data in your worksheet, how many pizza slices and sodas lee should buy to maximize her total utility if she rationally spends her budget of 10.00? question 11
when the price of pizza changes, lee's MU/$P changes. If the price of pizza decreases to $1.50 and her budget decreases to $7.50, how many pzza slices and sodas lee should buy to maximize her total utility?
None
(Review Question)
Sarah consumes both wine ) and cheese (y) and considers them perfect substitutes. She always gets twice as much
utility from consuming wine as she does cheese. What equation would represent her utility function?
U-(2xy)
U=x+2y
U=2x+y
U=min(x,2y)
Chapter 6 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- Is it possible for total utility to increase while marginal utility diminishes? Explain.arrow_forwardQuantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 B 72 185 50 3 234 66 4 230 45 A 4 294 60 270 5 348 54 2.arrow_forward1. Based on the table below describe Marginal Utility and Diminishing Marginal Utility? What happens as you consume more and more apples? At what point is utility maximised? Units of Apples Consumed Total Utility (TU) Marginal Utility (MU) 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 30 0 7 28 -2arrow_forward
- Explain the law of Equi marginal utility with the help of schedule. (arrow_forward42.Jacob works while sipping mugs of green herbal tea. He does, however, know that after the fifth cup of tea, he will acquire a headache and be unable to concentrate. What does this say about Jacob and the utility he derives from cups of green tea?arrow_forwardQuestion 1 Ahmed consumes 7 cookies. The marginal utility of the first cookie is 25 utils; of the second, 20 utils; of the third, 17 utils; of the fourth, 12 utils; of the fifth, 5 utils; of the sixth, 0 utils; and of the seventh, -5 utils. When he consumes these 7 cookies, his total utility from cookies is: 45 utils 0 utils 74 utils 79 utils 84 utilsarrow_forward
- 6. [1] (Chapter 8) Charlie's utility function is XAXB. The price of apples is $1, the price of bananas is $2, and his income price of bananas and income stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by $40. If the price of apples increased to $8 and the (а) 17.5 арples (b) 7 аpples (c) 8.75 apples (d) 13.75 аpples (e) None of the above.arrow_forwardi) Marginal Utility graphs Q2. You drink only Coffee or Orange juice Price of Coffee Marginal Utility of Coffee (for (dollars per cup) 1st cup) Price of Orange Marginal Utility Juice (dollars per glass) of Orange Juice (for 1 glass) $3 60 $2 50 a) Calculate the MU per dollar for Coffee b) Calculate the MU per dollar for Orange Juice c) If you have 1 cup of Coffee and 1 glass of Orange juice, are you in Equilibrium? Explain briefly. d) If not, how should you change your consumption of these 2 items?arrow_forwardQuestion 23 Assume Tom's utility for tacos is as follows: Tom's utility from consuming tacos # tacos Total Utility 1 35 2 47 3 57 4 63 5 65 What is the marginal utility Tom gets from eating the 3rd taco?arrow_forward
- Number of Sodas per day Total Utility Marginal Utilit 1 20 35 3 47 12 4 10 Refer to the table, The marginal utility of the second soda per day is L. (Answer should be in the form of numerical characters, e.g. 20) Enter your answer herearrow_forwardQuestion 16 The first slice of pizza yields Ali 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three slices is 38 units of utility. The marginal utility of the third slice is: 26 units of utility. 8 units of utility. 38 units of utility. 6 units of utility.arrow_forward7 The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one, I start getting sick of it so the net total utility is starting to fall. I park in a car park and when I park there for 6 hours, it is getting more expensive so I prefer to leave early. Is this an example of diminishing utility?arrow_forward
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