Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 6.A, Problem 12SQ
To determine
The movement downward along indifference curve and the marginal rate of substitution.
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Suppose the weighted
marginal utility for two
goods, x and y, at a position
of consumer equilibrium is
70. If the price of good x is
R10 and the relevant
marginal utility for y is 140,
what is the price of good y
and the relevant marginal
utility for good x?
A. The price of y = R70; the
marginal utility for x = 70
%3D
B. The price of y = R2; the marginal
utility for x =
700
C. The price of y = R10; the
marginal utility for x = 700
D. The price of y = R2; the marginal
utility for x = 140
E. The price of y = R140; the
marginal utility for x = 70
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|54
II
Explain the law of marginal utility.
What is its importance in understanding the preference of consumer consumption.
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
- Why does a change in income cause a parallel shift in the budget constraint?arrow_forwardb. i. Explain the concept of Marginal Rate of Substitution (MRS) as an important tool of indifference curve analysis of demandarrow_forwardThe Marginal Rate of substitution depends on the O a. Tastes and preferences of the consumer B Price level of goods income of the consume Oc.income of the consumer O d. Availability of goodsarrow_forward
- If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unitarrow_forwardt is known that the indifference curve is convex. What does this tell you about the relationship between the goods?arrow_forwardAs consumption of a certain good increase, marginal utility ______ * Increases Decreases Increases then decreases Decreases then increasesarrow_forward
- The convex shape of indifference curve is dur to _______ marginal rate of Substitutionarrow_forwardMaude’s labor-supply curve slopes upward if, forMaude,a. leisure is a normal good.b. consumption is a normal good.c. the income effect on leisure exceeds thesubstitution effect.d. the substitution effect on leisure exceeds theincome effect.arrow_forwardA decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph? Select one: OA. Parallel outward shift of the line OB. Parallel inward shift of the line OC. Decrease the horizontal intercept COD. Increase the vertical interceptarrow_forward
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