Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 6.A, Problem 11SQ
To determine
The indifference curve and the cause of downward slope.
Expert Solution & Answer
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i. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
ii. Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to your consumption of seafood?
iii. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility.
Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2.
Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal
utility of the sixth unit of B is 12, then:
a. he should not buy anything.
b. he should buy more of A and less of B.
c. he should buy less of A and more of B.
d. he should buy A and B in the quantities indicated.
e. he should buy more of A and little more than that of B.
According to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good?
A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.
Chapter 6 Solutions
Economics For Today
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
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Similar questions
- Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.arrow_forwardWhich statement BEST describes the principle of diminishing marginal utility? As an individual consumes more of a good: Select one: a. the marginal utility will eventually become negative. b. the total utility obtained will eventually become negative. c. the addition to total utility obtained from the nth unit of the good will be less than that obtained from the immediately preceding unit of the good. d. the total utility obtained will eventually fall.arrow_forwardThe rate at which a consumer is able to substitute one good for another is determined by the A.indifference map. B.consumer's preferences. C. ratio of the prices of the goods. D. non of the abovearrow_forward
- #10. Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the a. marginal utility of each decreases. b. marginal utility of each becomes negative. c. total utility of each becomes negative. d. marginal utility of candy bars and ice cream bars is equal. e. total utility of candy bars and ice cream bars is equal.arrow_forwardWhen given the marginal utility of the first five units of a product, we can calculate the total utility by a. finding the difference between the fourth and fifth units. b. finding the difference between the first and fifth units. c. looking at the marginal utility of the fifth unit. d. adding the fourth and fifth units. e. adding the marginal utilities of the first five unitsarrow_forwardWhich answer is correct and why?arrow_forward
- True/False Marginal utility keeps falling with the each additional consumption of a good or service.arrow_forwardHow does the law of diminishing marginal utility relate to changing income? Select one: a. The marginal benefit of an extra dollar of income rises as income rises. b. The marginal benefit of an extra dollar of income falls as income rises. c. The total utility gained from a small income is higher than the total utility gained from a high income. d. The total utility gained from a high income is higher than the total utility gained from a low income.arrow_forward5. The price of good x increases from 4 to 6. A consumer with an income of 120 buys 15 units of good x before the change and 10 units after. If the same consumer kept their utility constant and minimized expenditure, they would buy 8 units of x after the price change. What are the total effect, substitution effect, and income effect?arrow_forward
- Economics As one moves (to the right) along a demand curve: total utility rises, but marginal utility falls OA. В. total utility falls but marginal utility rises С. total utility rises and marginal utility rises total utility falls and marginal utility falls D.arrow_forwardOnly typed answerarrow_forwardShannon is allergic to chocolate and refuse to eat it making the statement that the marginal utility of chocolate is: a. zero b. negative c. less than the total utility. d. positive, but decreasing.arrow_forward
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