Activity 1. Answer the following questions: a. Illustrate and explain how consumer equilibrium is achieved using the indifference curve? b. How do we measure utility? Explain. c. Discuss how the demand elasticity of a product changes? Give examples.
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- When Marietta chooses to only purchase a combination of goods that lie within her budget line, she: a. likely has negative savings. b. is maximizing utility. c. is decreasing utility. d. must reduce the quantity.Suppose there is a single commodity that absorbs all of a consumer's income. a. What is the consumer's price elasticity of demand for the commodity? b. What is the consumer income elasticity of demand for the commodity?How 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.
- Owen saw that the price of peaches had gone down, and so he decided to buy more peaches. Based on this information only, what does Owen's reaction reflect? Choose 1 answer: A Owen's demand for peaches has increased. B Owen's quantity demanded for peaches has increased. Owen has experienced an increase in income. Owen observed that there has been an increase in the price of other fruit, a substitute for peaches. Owen expects future price changes.Which of the following statement is true?A. Marginal Utility is the additional satisfaction gained by the consumer in consuming the first glass of water.B.The value of a glass of water to a consumer depends on its average revenue.C.The marginal utility of pearl is higher than water.D.The additional utility of consuming one more glass of water is greater than buying one more pearl.Illustrate and explain how consumer equilibrium is achieved using the indifference curve?Discuss how the demand elasticity of a product changes? Give examples.
- Relationship Between the Consumer Demand Curve and Marginal Utility Discuss the impacts of marginal utility. Imagine that you are a seller of sunglasses: How can you increase the consumer demand curve by helping increase the marginal utility for consumers? Detail specific steps to take and provide examples.Draw a demand curve for pizza. What happens to the demand curve in each of the following scenarios?a. The price of Coca-Cola increases, assuming that pizza and Coca-Cola are complementary goods in consumption.b. Income increases and pizza is considered a normal good.c. The price of burritos decreases, assuming that pizza and burritos are substitutes in consumption. d. The price of pizza increasesWhat demand structure do products which are urgently needed as necessities likely to possess. a. Elastic b. Inelastic c. relatively elastic d. perfectly inelastic If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. satisfaction diminishes b. TU is maximum c. Quantity diminishes d. Marginal utility is maximum If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. at 56 utils of MU equals zero, utility begins to gain momentum b. at 56 utils of MU equals zero, utility begins to diminish c. at 56 utils of MU equals zero. utility begins to increase d. at 56 utils of MU equals zero, utility begins to upswing
- The mathematical equation that presents the inverse relationship of price and quantity that a consumer is willing and able to buy at a given time, ceteris paribusSingle choice. a. Budget function b. Demand function c. Supply function(9) What determines the utility an individual receives from consuming a good? Select one: a. The individual’s own preferences. b. The demand and supply curves for that good. c. The producers conducting customer feedback surveys of that good and the feedback provided. (10) Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price? Select one: a. 23% b. 30% c. 21%1. Explain utility and its connection to consumer behavior 2. As a college student you work at a part-time job, but your parents also send you a monthly “allowance.” Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
