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Subpart (a):
Ranking the highest value activity to the lowest value activity.
Subpart (a):
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Explanation of Solution
Utility is the measure of satisfaction that the consumers receive from the consumption of a unit of the commodity or service from the market. The different activities can be ordered on the basis of the utility received from each activity.
Utility is the measure of satisfaction that the consumers receive from the consumption of a unit of the commodity or service from the market. The different activities can be ordered on the basis of the utility received from each activity. Here in this case, eating an orange may be possibly the high valued activity followed by squeezing it to drink its juice. Using the orange as a decorative fruit or giving it to a friend might follow them. A person throwing the fruit on the one whom he does not like would be the least priority item. The order can change in any manner because the utility from each activity would be different for different individuals.
Concept introduction:
Utility: Utility is the measure of satisfaction that the consumer receives from the consumption of a unit of commodity or service.
Subpart (b):
Ranking the highest value activity to the lowest value activity.
Subpart (b):
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Explanation of Solution
When the price of the orange is high and the student is able to purchase four oranges, the student would not do the activity where he ranks at number 5 or the least priority activity. The four oranges would be used for the other four purposes by the student.
Subpart (c):
Ranking the highest value activity to the lowest value activity.
Subpart (c):
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Explanation of Solution
In order to purchase the five oranges by the student, the value of the fifth orange must be at least just below than the value of the fifth-ranked activity by the student.
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Chapter 7 Solutions
Modern Principles: Microeconomics
- Everything is in attached picture. 23arrow_forward1) Use the supply and demand schedules to graph the supply and demand functions. Find and show on the graph the equilibrium price and quantity, label it (A). P Q demanded P Q supplied 0 75 0 0 5 65 5 0 10 55 10 0 15 45 15 10 20 35 20 20 25 25 25 30 30 15 30 40 35 40 5 0 35 40 50 60 2) Find graphically and numerically the consumers and producers' surplus 3) The government introduced a tax of 10$, Label the price buyers pay and suppliers receive. Label the new equilibrium for buyers (B) and Sellers (S). How the surpluses have changed? Give the numerical answer and show on the graph. 4) Calculate using midpoint method the elasticity of demand curve from point (A) to (B) and elasticity of the supply curve from point (A) to (C).arrow_forwardFour heirs (A, B, C, and D) must divide fairly an estate consisting of three items — a house, a cabin and a boat — using the method of sealed bids. The players' bids (in dollars) are: In the initial allocation, player D Group of answer choices gets no items and gets $62,500 from the estate. gets the house and pays the estate $122,500. gets the cabin and gets $7,500 from the estate. gets the boat and and gets $55,500 from the estate. none of thesearrow_forward
- Jack and Jill are getting a divorce. Except for the house, they own very little of value so they agree to divide the house fairly using the method of sealed bids. Jack bids 140,000 and Jill bids 160,000. After all is said and done, the final outcome is Group of answer choices Jill gets the house and pays Jack $80,000. Jill gets the house and pays Jack $75,000. Jill gets the house and pays Jack $70,000. Jill gets the house and pays Jack $65,000. none of thesearrow_forwardThe problem statement never defines whether the loan had compound or simple interest. The readings indicate that the diference in those will be learned later, and the formula used fro this answer was not in the chapter. Should it be assumbed that a simple interest caluclaton should be used?arrow_forwardNot use ai pleasearrow_forward
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