g Ford, a consumer from Toronto, is in equilibrium and spending income so that the marginal utility of product X is 20 units and that of Y is 35 units. If the unit price of X is $4, then the price of Y must Multiple Choice $5 per unit. $6 per unit. $7 per unit. $4 per unit.

Q: Answer the question based on the table below showing the marginal utility schedules for product X…

A: Total utility means the consumption of goods and services by an individual. It is the addition of…

Q: Bob views apples and oranges as perfect substitutes in his consumption, and MRS 1 for all…

A: Indifference curve is a curve that contains all the combinations of two goods which provide the same…

Q: Jack and Jill live in the same village where they both face the same price. Jack has preferences…

A:

Q: Q10. Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F. In Case 1, Total income is…

A: We are going to use Consumser decision theory to answer the question.

Q: Which of the following statements is false? Group of answer choices If marginal utility is negative,…

A: Total utility is the addition of marginal utility. As long as the marginal utility is positive,…

Q: Lee has calculated her marginal utility from buying pizza slices and soda (shown on the table in the…

A: The price of pizza is $2.00 The price of soda is $2.00

Q: In village H, there are 100 people with (H)ealthy eating habits and in village U there are 100…

A: Village H considers pizza and beer as perfect complements. So the utility function will be U =…

Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…

A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…

Q: Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good…

A: The marginal utilities will look like: Consumer's utility maximizing bundle is where: MUxPx=MUyPy…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: Number of Cinema Tickets Total Utility MU/P for Cinema Tickets Marginal Utility Price of a Cinema…

A: The consumer equilibrium shows the maximization of the satisfaction of the consumer by spending his…

Q: To remain in consumer​ optimum, a price decrease requires(blank) in consumption. A price increase…

A: 1. As per law of demand, decrease in price will result in increase in demand.   A price decrease…

Q: Lara has preferences represented by the utility function U(x, y)  2x  2y. She consumes 10 units of…

A: here we calculate value of Y which are as follow-

Q: An individual has the utility function U=4X 0.5Y 0.5 and can buy good X at £ 2 a unit and good Y…

A: Answer to the question is as follows :

Q: To remain in consumer optimum, a price decrease requires V in consumption. A price increase requires…

A: To remain in consumer optimum, a price decrease requires an increase in consumption. A price…

Q: As an individual consumes more and more of a good, each additional unit brings about less and less…

A: Marginal Utility refers to the additional satisfaction derived from consumption of an additional…

Q: Juliana gets the following 15 units for free if she buys 30 units of good Y (at RM2 per unit). This…

A: The equation of the budget line procedure hinges on the prices of goods and the income of customers.…

Q: PROBLEM (2) Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is…

A: Problem (2): (a)The microeconomic theory of utility maximization states how a consumer chooses his…

Q: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

A: Given: Frank is making purchases of products C and D in profit maximizing amounts. Price of C=$6…

Q: The table shows an indifference schedule for several combinations of X and Y. Combination Quantity…

A: Bundle ( x,y ) At C is (12,3) At d is (10,4)

Q: A consumer’s preferences over consumption bundles (x1,x2) are strictly monotonic and strictly…

A: Consumer preferences are characterized as the abstract (individual) tastes, as estimated by utility,…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Individual M consumes product F Per unit product F= $5 Total income=$2,000   Maximum amount of food…

Q: The table shows the marginal utility schedules for product X and product Y for a hypothetical…

A: Given  Unit of x MUx Unit of Y MUy 1 72 1 24 2 66 2 20 3 60 3 16 4 48 4 12 5 30 5 8…

Q: Consider a person whose tastes and preferences are represented by IC . Something changes his tastes…

A:

Q: Total utility is maximized when marginal utility becomes (positive, zero, negative)

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

A: The budget constraint of the consumer shows the various combinations of two goods that an individual…

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: At Budget line:-                     APA+BPB=I where; A and B are two goods  PA= Price of good A PB=…

Q: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: If a rational consumer is in equilibrium, then: a. the marginal utility obtained from one product is…

A: A rational consumer is in equilibrium when he maximizes his utility subject to his budget.

Q: Avery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y.…

A: Given  Marginal utility on last unit of good X  that Avery buy by using weekly income = 14 and last…

Q: Answer the question based on the table below showing the marginal utility schedules for product X…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: In village H, there are 100 people with (H)ealthy eating habits and in village U there are 100…

A: We shall answer the first three subparts only. Please resubmit the other part separately in case you…

Q: 10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: The table shows an indifference schedule for several combinations of X and Y. Combination Quantity…

A: Indifference curve: An indifference curve is the graphical presentation of the attainable…

Q: True or False? The preferences represented by the utility function u(x, y) = A + 0.4 * log(x) + 0.6…

A: In economics, utility refers to the pleasure or happiness that consumers derive from using a product…

Q: Which of the following statements is true? OThe budget line shows the utility associated with all…

A: The budget line shows all the affordable consumption bundles so the first statement is incorrect.…

Q: Suppose marginal utility of good X is 20 while its price is Rs. 4 per unit and marginal utility of Y…

A: (Q) Suppose the marginal utility of good X is 20 while its price is Rs. 4 per unit and the marginal…

Q: Assume someone has a utility function of U = Min​[3X, Y]. They currently have 8 units of X and 3…

A: When utility is given in the form of U = Min(3X,Y), then it can be considered as the perfect…

Q: Troy is a utility maximizer. Describe the utility maximization condition. Using the available…

A: Laptop Cost = 750  Drones Cost = 2000  Income = 15,000

Q: A consumer is making purchases of products Alpha and Beta such that the marginal utility of product…

A: The Equilibrium condition for utility maximization: MUa/Pa = MUb/Pb The marginal utilities per…

Q: Joe Bob from Workout Problem 4.12 has a cousin Don who consumes goods 1 and 2. Don thinks that 3…

A: We know that utility function of perfect substitute is the form of straight line equation…

Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

Q: A consumer has S600 to spend on good x and y. Her preferences can be represented by the utility…

A: U(x,y)=100lnx+y Px=$10 Py=$5 M=$600 Optimal bundle is obtained when marginal utility per dollar of…

Q: Assume well behaved preferences for a consumer. If total price of good on Y axis goes up, ceteris…

A: A well-behaved consumer means the preference relation is convex and monotonic in nature

Q: If the slope of the indifference curve between goods X and Y is steeper than the slope of the budget…

A: The indifference curve shows a combination of two goods that gives an equal level of satisfaction…

Q: Optimal choice, example #4 Bob has utility function U(x,y)=x²+y over goods x and y. a) If Px=$30,…

A: * ANSWER :-    The Income consumption curve shows the relationship between consumption of goods and…

Q: 1.6) The marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.