Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of the following combinations is on the consumer's budget line? Multiple Choice 8A and 10B 4A and 5B 6A and 3B 3A and 6B
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Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of the following combinations is on the consumer's budget line?
Multiple Choice
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8A and 10B
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4A and 5B
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6A and 3B
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3A and 6B
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- Suppose a consumer has an income of $40, the price ofA is $5, and the price of B is $4. Which of the following combinations is on the consumer's budget line? Multiple Choice 8A and 10B 4A and 5B 6A and 3B 3A and 6BAria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is $0.90/unit. Is Aria maximizing her utility?Brian spends his entire monthly income of $1200 on shoes (S) and pizzas (P). The price of a pair of shoes is $60, and the price of a pizza is $20. If he consumes 10 pairs of shoes and 30 pizzas, his MRS is 2P/1S. (A quantity of shoes is measured along the x-axis, and a quantity of pizza is measured along the y-axis.) His choice is optimal. True False
- Donald likes fishing (X1) and hanging out in his hammock (X2). His utility function for these two activities is u(x1, x2) = 3X12X24. (A) Calculate MU1, the marginal utility of fishing. (B) Calculate MU2, the marginal utility of hanging out in his hammock. (C) Calculate MRS, the rate at which he is willing to substitute hanging out in his hammock for fishing. (D)Last week, Donald fished 2 hours a day, and hung out in his hammock 4 hours a day. Using your formula for MRS from (c) find his MRS last week. (E) This week, Donald is fishing eight hours a day, and hanging out in his ham mock two hours a day. Calculate his MRS this week. Has his MRS increased or decreased? Explain why? (F) Is Donald happier or sadder this week compared to last week? Explain.Price of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Total Utility Slices per Week Cans per Week 1 32 15 63 29 3 42 91 4 54 115.75 65 136 6. 75.75 154 86 171 8. 96 8 187 9. 105 201 10 113 10 213 If this consumer only has $10.00 to spend on beer and pizza a week, and is currently consuming 7 slices of pizza and 6 cans of beer per week, what should this consumer do to maximize his utility? Buy only beer. Buy only pizza. Buy more beer and less pizza. Buy more pizza and less beer. 234 567009Digital Apps per Period 0 1 2 3 4 5 Total Utility of Digital Apps per Period (utils) which 0 50.0 95.0 135.0 171.5 200.0 Marginal Utility (utils) 50.0 45.0 40.0 36.5 28.5 Marginal Utility Portable per Dollars Spent Power Banks (price = $5.97) per Period | 8.4 7.5 6.7 6.1 4.8 0 1 GTA W N 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Utility (utils) 25 22 18 15 9 Marginal Utility per Dollars Spent (price = $2.70) 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is $ and spending on portable power banks is $. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is $ the…
- Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48. Each burger costs $6 and each order of fries costs $3. When deciding how much of each good to buy, Rick knows that 2 burgers and 4 orders of french fries will give him a utility of 8. At his utility-maximizing point, Rick's utility is:What is the trend of the total utilityIf at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at a quantity consumed of 2 units, total utility is unknown and marginal utility is 20, and at a quantity consumed of 3 units, total utility is 57 and marginal utility is unknown, what is marginal utility of the third unit?
- How can one's choice of purchases/consumption be infuenced by utility or marginal utility?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?Amy is currently spending all of her budget and she finds that the marginal utility per dollar from dresses is less than the marginal utility per dollar from hats. To maximize her utility, Amy should buy fewer dresses and hats. more hats and fewer dresses. more dresses and fewer hats. more dresses and hats. probably change her purchases but more information is needed to determine if she should buy more or fewer dresses and hats.