ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Name: Maximizing Utility The following table shows represents the utility received by Sharon for cookies and pretzels. Fill in the missing data. Total Marginal Utility Utility # of pretzels # of Marginal Utility Utility Total cookies --- --- 1 20 1 12 2 10 2 8 3 5 3 4 4 4 5 32 5 20 28 -10 Use the above completed table to answer the folloiwng questions. If your budget is $ 5.00 and both cookies and pretxels cost $1.00 each, how many cookies and pretzels will you buy to maximize your utility? а. What will your total utility be?arrow_forward4. Liam initially has a weekly allowance of €24 to spend on eggs (at €0.40 per egg) and beans (at €0.80 per tin). Liam will only consume 4 eggs with each tin of beans and never changes this proportion. (a) What is the utility maximising amount of eggs and beans that Liam buys each week? (b) Suppose the price of eggs rise to €0.60 per egg but the price of beans falls to €0.60 per tin. At the same time, Liam's weekly allowance rises to €30. How much of each good will Liam now buy? Compare your answer to that in (a) and explain the difference, if there is one. Use a diagram to complement your answer.arrow_forwardOnly typed Answerarrow_forward
- A. Based on the graph would you say marginal utility is increasing or decreasing B. Identify on the graph the quantity level at which utility is maximizedarrow_forwardThe following table shows Ellie's utility from consuming slices of cake and cans of 7 - Up. 5- Slices Marginal Utility from Last Slice Cans Marginal Utility from Last Can 4.5- of of Cake 7- Up 4- 1 120 120 3.5- 100 60 3- 80 45 4 60 30 2.5- 40 20 20 15 2- Suppose Ellie has $3 per week to spend on cake and 7- Up and that the price of a slice of cake is $0.50. 1.5- 1- 1.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $0.50. Label this point 'A'. 0.5- 0- 2.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $1.00. Label this point 'B'. 1 2 3. 4 6 Quantity of 7-Up (6,1) 3.) Use the line drawing tool to connect the dots to form Ellie's demand curve. Properly label this line. Carefully follow the instructions above, and only draw the required objects. 1123 4 56 Price of 7-Uparrow_forwardThe following table describes the utility that Greta gets from consuming Shiner Bock. Her marginal utility is maximized ___.arrow_forward
- 2. If peanut butter brings you 30 utils of pleasure for the last dollar's worth, and the last dollar you spend on jelly brings you 15 utils of pleasure, what do you do? How does this relate to the law of diminishing marginal utility?arrow_forwardQuestion 16 The first slice of pizza yields Ali 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three slices is 38 units of utility. The marginal utility of the third slice is: 26 units of utility. 8 units of utility. 38 units of utility. 6 units of utility.arrow_forwardComplete this table on the picture.arrow_forward
- Only typed answer and please don't use chat gpt and don't use tablearrow_forward39. The following chart shows thec total utility-that Ammar receives from çonşuming various amounts-of chocolate.candy bars each day: Number candy, bars consumed për đay Total'utility 1' 40- 2 70 90 100 4. 80 Which of the following statements about Ammar's marginal utility is correct? Hiş marginal utility from the first candy bar is greater-than his marginalutility from the second candy' bararrow_forwardThe following table shows Ellie's utility from consuming slices of cake and cans of 7- Up. 5- Marginal Utility from Last Slice Slices Cans Marginal Utility from Last Can 4.5- of of Cake 7- Up 4- - 120 100 1 120 3.5- 2 60 3- 80 45 4 60 4 30 2.5- 40 5 20 6. 20 6 15 2- Suppose Ellie has $3 per week to spend on cake and 7- Up and that the price of a slice of cake is $0.50. 1.5- 1- 1.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $0.50. Label this point 'A'. 0.5- 0- 2.) Use the point drawing tool to plot Ellie's demand for 7- Up at a price of $1.00. Label this point 'B'. 2 3 4 Quantity of 7-Up 3.) Use the line drawing tool to connect the dots to form Ellie's demand curve. Properly label this line. Carefully follow the instructions above, and only draw the required objects. O -2 3 Price of 7-Uparrow_forward
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