Assume an hypothetical consumer faced by the following utility function; U=X^2Y ( squared times y). After a bad harvest and thus bad economic conditions, the price of good X increases from Ksh.4.2 to Ksh. 4.8, while the price of good Y which was ksh. 4 increased to ksh.5. The income of the consumer was ksh. 30 before and after the good harvest. Calculate the CV and EV.
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- Principles of Economics 1 | S1 21/22 Time left 0:5) When the price of one good increases and the price of the other good and income are held constant, the budget line Select one: shifts parallel to the original budget line so that the new budget line is farther from the origin O b. shifts parallel to the original budget line so that the new budget line is closer to the origin rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price O a. O c. O d. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an increase in price Next pageIf the supply and demand functions for a commodity are 100 + 2(4+ Pa = - (Q.) P₁ = (Q + 2)² E plot each function on the same graph Estimate the quarum price and quarty aigebraicaty and graphicaly w▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪ ‒‒‒‒‒‒‒‒‒‒‒‒wwwwwwwwwMylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?
- 9: Is il fossible for marginal utility To be negetive and yet Tolal Utilily To positive ? INhy be why not ? orFigure 4.2 P3 P2 P1 A C Q Q2 Q3 Q4 Qs Qs Q7 Refer to Figure 4.2. The demand curve A indicates that O the smallcst price change will cause consumcrs to change their consumption by a large amount, O therc is no change in quantity demandcd as the price changes. consumcrs can purchase any quantity they want regardless of the price, Oithc smalcst price incrcasc wil.causc.consuners to switch to the producer with thc lowestSubmit All Question 26 of 60 Suppose the price of mobile apps increases. As a result, Khalil decreases the number of mobile apps he purchases. This will lead to O higher marginal utility from the last mobile app purchased. O lower marginal utility. O no change in total utility for each mobile app purchased. O an increase in total utility for each mobile app purchased. Activate Windows Go to Setti To activa Show all 7:22 PM 12/9/2021 APTOP LOGIN USERNAME Student t PASSWORD: Broward
- Law of equi marginal utility is an important law of cardinal utility analysis. Explain this law with the help of its assumptions. Also explain the mechanism that how the total utility will be maximum at a point when the marginal utilities of both the goods become equal. Furthermore, there is a relationship between total and marginal utilities where they both pass through different stages when the consumer continues his or her consumption regularly. Describe this case brieflyAnswer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4, respectively, and that the consumer's income is $25 Units of L 1 2 3 4 5 Multiple Choice O Total Utility Units of M 9 O What level of total utility does the rational consumer realize in equilibrium? 51 utils 86 utils 162 utils 15 18 20 21 58 utils 1 2 3 4 5 Total Utility 16 28 36 40 42What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain why, if this rule does not hold, the choice cannot be utility-maximizing
- Suppose that consumer has the following utility function: U(X,Y)= X¹/2y¹/2 and Px = 1, Py = 4 and I 720. Suppose now that Px goes up to 4. What is the magnitude of the income effect on good X? O90 - 90 180 O-180 PIf we observe that a consumerâ s budget constraint has shifted inward, we can assume that the consumer will buy O fewer normal goods and fewer inferior goods O more normal goods and more inferior goods O fewer normal goods and more inferior goods more normal goods and fewer inferior goodsTitle Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she mus Description Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she must have exactly two spoonfuls of coconut oil for each cup of coffee. Let C be the number of cups of coffee, and O be the number of spoonfuls of coconut oil. Also, let PC be the price of a cup of coffee. Suppose Lynn has $12 to spend on coffee and coconut oil. Also, the price of coconut oil is $.50 per spoonful.a) Graph Lynnâs Price Consumption Curve for prices, PC = $1, PC = $2, and PC = $3. Please put the number of cups of coffee on the horizontal axis, and the number of spoonfuls of coconut oil on the vertical axis. Be sure to label your graph carefully and accurately.b) Graph Lynnâs demand curve for coffee. You may assume that both coconut oil and coffee are continuous variables so she can consume any amount of coffee and coconut oil that she could afford.…