A consumer has a choice of spending $20,000 on a Honda or $14,000 on a Kia. She was observed buying a Kia during the weekend. Does this mean the consumer prefers the Kia to the Honda?

Q: he insists on consuming exactly one sweet tea for every two burgers that he eats. Then, using an…

A: An indifference bend tells a blend of two products that offer equivalent fulfillment and utility to…

Q: Suppose we observe a rational consumer make the following choices: Ch(a, b, c) = b Ch(b, c, d) = b,…

A: Economics is a subject that deals with the allocation of scarce resources among individuals with…

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: Here we calculate the combination of consumer budget line by using the given data and choose the…

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: Can someone else measure your utility why or why not?

A: The term "utility" is commonly used in the subject of economics. It can be used to calculate the…

Q: Many apartment-complex owners are installing water meters for each apartment and billing the…

A: Answer - Marginal Utility :- It is utility which a consumer will get by consuming one extra unit of…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is…

A: Budget line shows the different combinations of two goods that a consumer can purchase with the…

Q: Rick thinks either Morty or Summer broke his TV. Morty and Summer each have to decide simultaneously…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

Q: Explain how an optimal decision of a consumer can be achieved by using utility-maximizing theory and…

A: In a market, consumer satisfaction can be computed using two types of economic approaches that are…

Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…

A: Utility refers to the level of satisfaction that a consumer receives by consuming a good. A rational…

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

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

Q: A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates…

A: Here, given information is: Price of chocolates: 40 cent Price of candles: 80 cent Total spending:…

Q: Table 6.4 Chocolate Bars Total Utility 1 10 2 25 3 ​ 4 60 5 70   Refer to Table 6.4,…

A: Given table:

Q: What is meant by Utility ?

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…

Q: Total Utility Marginal Utility Slices of Pizza 0. 20 50 1. 20 3. 10 In the above table, the total…

A: Total utility(TU) refers to the total amount(A) of satisfaction received from the consumption(C) of…

Q: Tanya has a budget of £21 to spend on toothbrushes and tooth paste. she does not receive any utility…

A: Answer - Given in the question - Income = 21 Price of Tooth paste = 5 Price of Tooth Brush = 1  Need…

Q: While discussing the choice bundle of a consumer, differentiate between Boundary Optimum and…

A: With an interior optimum the consumer chooses a basket that contains positive quantities of all…

Q: Rick thinks either Morty or Summer broke his TV. Morty and Summer each have to decide simultaneously…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: If the marginal utility from consuming the fifth unit of a product is 6 and the total utility from…

A: The total enjoyment obtained from the consumption of an item or service is referred to as utility in…

Q: Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total…

A: Budget Line 10.5 = 0.5B + P21 = B + 2P (By duviding 0.5) MU = Change in TU/Change in Q

Q: Give an example of monotonic preference

A: # If a consumer is said to have monotonic preference and he has to choose between two bundles then…

Q: Martha spends 5 hours of free time exercising and playing music per day.  The table below represents…

A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Q: According to behavioral economics research, in which of the following cases would we expect a person…

A: Behavioral economics refers to the studies of the effects of psychological, emotional, cultural,…

Q: When marginal utility is decreasing but positive, total utility is a increasing at a decreasing…

A: Marginal utility is the additional utility that is derived by consuming an additional unit of the…

Q: True/ false Describe Since a greater utility number indicates that a consumer is better off,…

A: Utility: Utility is used to model value or value. Its use has evolved significantly over time. The…

Q: Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90…

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

Q: True or false.  Maximizing choices occur when combinations of two goods are made such that they are…

A: An indifference curve is a contour line with the same utility at all points along the line. A line…

Q: In recent years fresh bagel sales have been growing at about 30% per year. Once considered an ethnic…

A: The utility from day old bagel has very low or no preference by consumers. An IC curve represents…

Q: An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells…

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

Q: Marketers have found that, as they've aged, baby boomers have become less interested in…

A: Baby Boomers: The time period between 1946 to 1964 refers as the baby boom time period because…

Q: Describe the point at which a consumer maximizes utility.

A: A rational consumer is going to be in equilibrium when his utility is maximized within a given…

Q: If Ty's marginal utility for a cup of coffee is 20 and his marginal utility of a donut is 10, then…

A: When a consumer is consuming two goods, in order to maximize his utility, he should compare the…

Q: Ross is a race car driver. The more he races, the happier he is. The level of happiness Ross feels…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Mike is a jellyfish wrangler.  In June and July he spent his budget on fish tanks and wet suits.…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90…

A: Marginal utility (MU) = Change in total utility (TU) / Change in number of repetitions (Q) When Q =…

Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…

A: Theory of diminishing marginal utility states that, with other things being equal, there would be a…

Q: Ning owns an Iphone 5. One day she loses her phone and contemplates a replacement.  She considers…

A: Prof. Samuelson's theory of demand is based on the revealed preference axiom or hypothesis which…

Q: Suppose we observe a rational consumer make the following choices: Ch(a, b, c) = b Ch(b, c, d) = b,…

A: Three choices have been given and the rational consumer prefers more of b than of e.

Q: What is meant by form utility?

A: Utility is an economic term which refers to satisfaction.

Q: Praxilla who lived in ancient Greece derives utility from Reading poems and from eating cucumbers.…

A: Marginal utility (MU)  is the additional gain that is derived by consuming an additional unit of a…

Q: as the number of units of beer consumed by Peter Increases from 1 unit to 7 units, his total utility…

A: The utility obtained by consuming an additional unit of any good or service is referred to as the…

Q: Calculate a Laspeyres​ cost-of-living index

A: The given information of person 'M' is written in the following table: Goods Price of last…

Q: Individuals who buy second homes usually spend less for them than they do for their first homes. Why…

A: Law of diminishing marginal utility- As per this law as there is a rise in the consumption of…

Q: A date with Alex costs you $100 and gives you an additional 1000 units of utility. A date with Kelly…

A: Cost of date with Alex = $100 Utility from Alex date = 1000 Cost of date with Kelly = $200 Utility…

Q: A consumer is having a monotonic preference. What can you say about his preference on these bundles…

A: # the concept of monotonic preferences simply means that if a consumer is getting more of a good…

Q: Refer to Table 6-2. The table shows Vladimir's total and marginal utility from eating steaks. What…

A: Aggregate satisfaction a consumer gets from the consumption of any goods or services is known as…

Q: Table 6.4 Chocolate Bars Total Utility 1 10 2 25 3 ​ 4 60 5 70   Refer to Table 6.4,…

A: In economics, a utility is the usefulness of a service or commodity for the consumer. The utility is…