Suppose a consumer had a utility function given by: U= X + 4Y. If the price of Good X (Px) is $1 and the price of Good Y is $8 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $4? (Round to the nearest two decimal places if necessary.)

Suppose a consumer had a utility function given by: U= X + 4Y. If the price of Good X (Px) is $1 and the price of Good Y is $8 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $4? (Round to the nearest two decimal places if necessary.)

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 6QFR

See similar textbooks

Related questions

Q: Directions: Answer the following question. Your answer must be typewritten but the graph may be hand…

A: A production possibilities frontier (PPF) shows the maximum possible output combinations of two…

Q: Savion is restoring a car and has already spent $4, 000 on the restoration. He expects to be able to…

A: Sunk cost = $4000.$4000 is a sunk cost because Savion has already spent $4000 on the restoration and…

Q: Quantity 0 1 2 3 Total Fixed Variable Marginal Cost Cost Cost Cost 100 100 D 150 A E B A CA What is…

A: Marginal cost:Marginal cost is the additional unit that is added to the total cost. It is calculated…

Q: Amid an economic recession, a government decides to implement an expansionary fiscal policy. This…

A: A recession refers to an economic downturn described by a critical and sustained decrease in…

Q: For an output level below QE, the value of a unit to a buyer is the cost of a unit to a seller.…

A: When prices in a market accurately represent all available information, resources can be allocated…

Q: Consider the downward-sloping linear demand curve in the figure at the right. Use the line drawing…

A: The demand curve is the graphical representation of the relationship between the quantity demanded…

Q: A mercantilist nation is focused on achieving a favorable balance of trade. To do this, it aims to…

A: The balance of trade measures the difference between a country’s exports and imports of goods,…

Q: (Figure: Determining Surplus and Loss) In the graph, consumer surplus is price of $5. P 16 12 8 5 2…

A: One way to measure the advantages that people have over rival markets is through consumer surplus.…

Q: Refer to the diagram to the right. The closed-economy equilibrium price is $14. The world price is…

A: Consumer surplus is the benefit that the customer receives from purchasing the commodity at a price…

Q: The quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $140. The…

A: The quantity demanded for each month of Russo Espresso Maker is 250. The unit price is $140. The…

Q: The graph presented shows the initial output level, identify the expansion path? In a fixed…

A: The expansion path refers to the trajectory or path along which a firm or producer expands its…

Q: Consider the following production function: Q = (6L +3K)¹/2 1. What is the Marginal Product of Labor…

A: The production function gives the value of output that can be produced with given inputs and…

Q: According to the graph, the milk market is an example of industry. True or False: The average cost…

A: The topic described in the question concerns the examination of market dynamics in the setting of a…

Q: The figure above shows an economy's initial Aggregate Supply AS₁ and Potential GDP (Yp) curves, and…

A: Aggregate Supply curve represents the total quantity of goods and services that firms in an economy…

Q: (Based on Roy Gardner, Games for Business and Economics) Two competing firms are deciding how much…

A: Nash equilibrium is the market situation where every player is making a strategy after looking into…

Q: K The figure shows the production possibilities frontier for Felicia's Fine Foods, a petfood…

A: A production possibility frontier (PPF) is a graphical representation of the maximum output…

Q: (5) (Allais' Paradox) This example provides a natural preference order (natural meaning that a large…

A: The objective of the question is to understand the Allais' Paradox and to verify the given…

Q: Consider the following market. Now, suppose that the government imposes the price ceiling at price…

A: A price ceiling is defined as a maximum amount that a seller will be allowed to charge for a product…

Q: If the CPI rose by 68% over a five year period, what was the average annual growth rate of the CPI?

A: A measure used to estimate the average change over time in the prices paid by consumers for a market…

Q: Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve…

A: The objective of the question is to understand the impact of a change in the reserve requirement on…

Q: Consider the figure at the right. This economy moved from production possibilities boundary A to…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: An industrial engineering consulting firm signed a lease agreement for simulation software.…

A: Present worth refers to the current account value of a series of future cash fl;ows, discounted at a…

Q: 3 4 Open market operations are the buying and selling of government securities by the Central Bank…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: How can differences in two countries' cultures create ethical issues in business? What can companies…

A: Understanding the cultural differences between countries is crucial in the global business…

Q: The following table lists several determinants of aggregate demand. Fill in the missing values in…

A: Aggregate demand is a macroeconomic concept given by Keynes. It is made up of all consumer goods,…

Q: What is the value of the maximum gains from trade? Hint: enter your answer without a $ sign Example:…

A: International economics studies how states participate in the global economy, with a focus on trade,…

Q: 3. Market for hamburgers, what happens to supply and demand? 1. Price of chicken sandwiches (a…

A: The concept of D can help to explain that it shows the total amount of demand for the products and…

Q: Notice that real GDP trends upward over time but experiences ups and downs in the short run. These…

A: A business cycle is a fluctuating economic pattern over a certain period of time. It is measured…

Q: Using the following national income accounting data, compute GDP by the expenditures approach. All…

A: The GDP is an indicator of a nation's economic production during a given time frame, often one year.…

Q: Nash equilibria

A: A Nash equilibrium is a concept in recreation principle that represents a strong nation in a…

Q: For the pair of supply-and-demand equations, where x represents the quantity demanded in units of…

A: This can be defined as a concept that shows the total amount of demand for the products and services…

Q: In 2017, Country A had a GDP per capita of $8,500 and a population of 68.6 million people. In 2018,…

A: Gross domestic product is the final combination of goods and services in a country. GDP is an…

Q: Suppose that is a normal good and y is an inferior good. The Marshallian demand functions for these…

A: One of the foundational ideas is the Marshallian demand function, which is named after economist…

Q: 7 8 The sale of a government security by the Central Bank increases the supply of money. decreases…

A: The first part of the question is asking about the impact of the sale of a government security by…

Q: In an attempt to promote renewable energy, the government provides an annual rebate to those who…

A: The question involves identifying the type of economic policy represented by a government providing…

Q: The diagram shows the actual statistics for the U.S. sugar market in 2020, reflecting a quota of 6.4…

A: This table can be filled in by calculating the area of sections A, B, C, D, and E from the diagram.…

Q: to supply x office chairs for a price, in dollars, of p(x) = 0.175x + 63.75. (a) What is the market…

A: Market equilibrium is attained at the intersection of the demand curve and the supply curve. An…

Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…

A: Present value is the current value of future cash flows or payments. It is the discounted value of…

Q: heterogeneous firms.

A: The "rollback" method, within the context of pollution regulation, refers to a strategy geared…

Q: Assume that the Fed follows an unhinged intervention by selling $500 billion worth of GBP against…

A: Supply refers to the amount of a good or service that producers are willing to provide at different…

Q: Consider the following game in strategic (normal) form: P1 U M D L 2,2 1,5 2,0 M1 3,1 1,6 0,-1 P₂ M2…

A: There are two players : P1 & P2Strategy Set of P1 = { U, M , D }Strategy Set of P3 : { L , M…

Q: Please write your paper per the syllabus on ALL of the following links and one attachment. Your…

A: The objective of this question is to analyze the macroeconomic policies of three different…

Q: a. What is the consumer surplus at a price of $7? b. What is producer surplus at a price of $7?

A: Consumer surplus:CS is the portion below the demand curve and above the price line. Consumer…

Q: Suppose New Zealand is open to free trade in the world market for maize. Since New Zealand is small…

A: World price is the prevailing price of a product in the global market. It is considered as the…

Q: Find the value of z such that 0.57620.5762 of the area lies between −z−� and z. Round your answer to…

A: The question is asking us to find the z-score such that the area between -z and z is 0.5762 in a…

Q: A) Which of the following would NOT cause a change in demand for chicken? A consumer loses their…

A: A movement along a fixed demand curve brought on by a change in price is referred to as a change in…

Q: Reset the graph and click on the blue square to apply a negative supply shock the the economy, Then…

A: Supply shock means a less number of goods are there in the market as the production of goods is…

Q: Graphical 4. Plot production function, savings function, and depreciation function in a slow model…

A: The Solow-Swan model, a neoclassical economic development model established separately by Robert…

Q: As a result of the Fed's sale of $2,500 worth of government securities to First Main Street Bank,…

A: The central bank manages the supply of money in the economy via monetary tools such as adjustments…

Q: (a) Develop the game theory table for this game. The values should be expressed as the gains (or…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Question

Suppose a consumer had a utility function given by: U=X + 4Y. If the
price of Good X (Px) is $1 and the price of Good Y is $8 then what is
the utility maximizing quantity of Good X the consumer will purchase
with a budget of $4?
(Round to the nearest two decimal places if necessary.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define maximizing utility funstion

VIEW

Step 2: Solving utility maximizing quantity of Good X

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

I need help with my homework assignment that i dont undertsand. Suppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has $90 to spend (M = $90). The Price of good Y is PY = $1. Using a graph, sketch the consumer’s demand curve for Good X. Make sure to identify three points on the demand curve. Make sure your graph is neat, accurate, and scaled properly.
Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and $2.00 respectively. What is the marginal utility per dollar spent for the fourth burger?
How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?
Anatoly's marginal utility for DVDS (D) is MU X and his marginal utility for Xbox games (X) is MUx D. Anatoly's income is $120, the price of a DVD is $20.00, and the price of an Xbox game is $10.00. How many DVDS and Xbox games does Anatoly consume to maximize his satisfaction? Anatoly consumesDVDs andXbox games. (Enter your responses using integers.)
Suppose that the consumer maximizes his utilitysuch that the marginal utilities of goods X and Y are; MUx=80-16x MUy=60-2y Let Px=P4,Py=P2 and I=P80 Find the utility maximizing quantities X and Y
A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of good x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Suppose a consumer had a utility function given by: U = X²Y0.5. If the price of Good X (Px) is $3 and the price of Good Y is $6 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $15? (Round to the nearest decimal place if necessary.)
b. A consumer purchases two goods, the amounts of which are x and y. Her marginal utility of consuming good x is Ux , while that of consuming good ? is Uy. If the two marginal utility functions are given by Ux = y2 + 2xy and Uy = 4xy + 3x2 − 3 and the consumer is known to stay on the same utility curve, find the total utility function of this consumer buying the two goods
Consumer satisfaction from consuming goods X and Y is as follows:U=10X+14Y-X2-Y2 and consumer income 3X+Y=12Look for:1. The marginal utility function for goods X and Y?2. What are the values of X and Y for maximum utility?3. Prove with the results of X and Y obtained whether optimal customer satisfaction is achieved?
7. Bob receives utility from days spent traveling on vacation domestically (D) and daysspent traveling in a foreign country (F) as given by the utilityU(D; F) = DFThe price of a day spent traveling domestically is 160 pounds and in a foreigncountry 200 pounds. Bobís annual budget for traveling is 8000 pounds. (a) Find Bobís utility maximising choice of days traveling domestically and of daystravelling in a foreign country. Find also his utility level from consuming thatbundle. Suppose that the price of domestic traveling increases to 250 pounds per day.Denoting his budget for traveling x, (suppose by now that it is unknown) findthe demand for D and F under the new prices as a function of x.
Explain why it is that as the consumer purchases more of a good, her marginal utility falls while her total utility rises.