Alicia consumes goods X and Y. At her current consumption bundle, Alicia's marginal utility of the two goods are MUX-39 utils/unit and MUY-39 utils/unit. The prices of two goods are PX-$19/unit and PY-$15/unit. Please find the marginal utility per dollar of the good to which Alicia should reallocate more money. [Hints/Example)

Alicia consumes goods X and Y. At her current consumption bundle, Alicia's marginal utility of the two goods are MUX-39 utils/unit and MUY-39 utils/unit. The prices of two goods are PX-$19/unit and PY-$15/unit. Please find the marginal utility per dollar of the good to which Alicia should reallocate more money. [Hints/Example)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the Bank of Canada lowers its target for the overnight interest rate and longer-term interest rates in the market fall as a result. When this occurs, the commercial banks respond to in the demand for loans by... O a. An increase; selling government securities to the Bank of Canada in exchange for cash, with which they can extend new loans. O b. A decrease; buying government securities from the Bank of Canada in exchange for cash, and calling in existing loans. An increase; buying government securities from the Bank of Canada, against which they can extend new loans. O d. A decrease; selling government securities to the Bank of Canada and calling in existing loans. Oe. An increase; borrowing cash from the Bank of Canada with which they can extend new loans.
Answer both parts...
Sarah has a budget of 58. Her utility function if U(x,y) = x*y. %3D The price of good x is 1, the price of good y is 8. How many units of good x does Sarah consume? Answer: Type here to search 01/
Suppose that you are trying to determine whether or not your friend Rajiv views a pound of cheese as a necessity, a luxury, or in between a necessity and a luxury. Rajiv has a weekly income of s50 to spend on either cheese or other consumption. The price of cheese is $10 per pound, and the vertical axis is treated as a composite good representing dollars spent on other consumption. On the following graph, use the blue line (circle symbol) to graph Rajiy's budget constraint (BC). Then, place the black point (plus symbol) on the graph to indicate the best bundle in this case. Note: Dashed drop lines will automatically extend to both axes. 100 90 вс, 70 Initial Best Bundle 00 50 40 BC, 30 20 New Best Bundie 10 2. 6. 10 CHEESE (Pounds per week) Now, suppose that Rajiv's weekly income increases to $100. Use the green line (triangle symbol) to graph the new budget constraint (BCa). Then, place the grey point (star symbol) on the graph to indicate the new best bundle. According to the…
2. Muhammad's demand for fresh fish is perfectly income inelastic, and his income increases. If Muhammad's preferences for fish are well-behaved, show the effect of this increase in income on the change in his optimal choice of fresh fish, his expenditure on all other goods, and draw his income-consumption curve. Clearly label your graph.
Only typed answer
Maria has a fixed weekly budget which she has been spending on goods A, B, and C. Her utility function exhibits a diminishing marginal rate of substitution. She uses the equi-marginal principle to decide how much to purchase of each product. Suppose that for Maria's current consumption bundle it holds that MUA MUB MUC PA Рв PC You may assume that she has spent her entire budget. If Maria wishes to maximise utility, next week, she should A) buy product A only. B) buy products B and C only. C) buy less of A and more of B and C. D) buy more of A and less of B and C.
In may and june, Mary spent all her clothing budget on bathing suits and beach bags. Each bathing suit cost $85. At Mary's optimal choice, her marginal utility from the last bathing suit purchased is 351 and her marginal utility from the last beach bag purchased is 255. This means that each handbag must cost? round to two decimals
2.5 Ms. Caffeine enjoys coffee (C) and tea (T) accord- ing to the function U(C,T) = 3C+4T. a. What does her utility function say about her MRS of coffee for tea? What do her indiffer- ence curves look like? b. If coffee and tea cost $3 each and Ms. Caffeine has $12 to spend on these products, how much coffee and tea should she buy to maximize her utility? c. Draw the graph of her indifference curve map and her budget constraint, and show that the utility-maximizing point occurs only on the T-axis where no coffee is bought. d. Would this person buy any coffee if she had more money to spend? e. How would her consumption change if the price of coffee fell to $2?
Mike is a jellyfish wrangler. In June and July he spent his budget on fish tanks and wet suits. Each fish tank cost $50 and each wet suit cost $100. At Mike's optimal choice, his marginal utility from the last fish tank purchased is 200. This means that his marginal utility from the last wet suit purchased is:
Please help awnsering the following question. Thank you
am. 113.