Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure Carlos enjoys both pretzels and cookies. Assume that the "more is better" principle holds for Carlos, meaning that he would always prefer to consumemore of either good, holding the level of consumption of the other good constant.The two figures below present information regarding Carlos's preferences. The points on Figure 1 represent combinations of cookies and pretzels thatCarlos might choose to consume. Figure 2 plots the same points as Figure 1, but it also shows some of Carlos's indifference curves: I₁, I2, and Is.Thus, Figure 2 gives more insight into Carlos's preferences than Figure 1.PRETZELS (Bags)GFigure 1StatementCOOKIES (Packages)BB0с00DEPRETZELS (Bags)UAGIndicate whether each of the following statements is true or false given the graphs.O4 ½ l0-5HComplete the following table by indicating which bundles Carlos strictly prefers to F given only the information in each figure.Information Given By... AHFigure 1Figure 2GFigure 2OEOOCOOKIES (Packages)mFigure 1 does not provide enough information to compare the utility Carlos receives from C versus G.Figure 2 indicates that Carlos prefers bundle C to bundle G.TrueFalse?O

A mapping of the combination of two commodities that will provide the customer with the same degree…

Complete the following table by indicating which bundles Carlos strictly prefers to F given only the information in each figure. Information Given By... A B C D E GH Figure 1 Figure 2 0 0 0 0 Indicate whether each of the following statements is true or false given the graphs. Statement Figure 1 does not provide enough information to compare the utility Carlos receives from C versus G. Figure 2 indicates that Carlos prefers bundle C to bundle G. True False O O

Complete the following table by indicating which bundles Carlos strictly prefers to F given only the information in each figure. Information Given By... A B C D E GH Figure 1 Figure 2 0 0 0 0 Indicate whether each of the following statements is true or false given the graphs. Statement Figure 1 does not provide enough information to compare the utility Carlos receives from C versus G. Figure 2 indicates that Carlos prefers bundle C to bundle G. True False O O

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 6QFR

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Suppose a consumer has a budget of $200 to spend on two goods, X and Y, whose prices are $20 and $10, respectively. If the consumer is observed to buy 5 units of X and 10 units of Y, where the respective Marginal Utilities of X and Y are, 50 and 40 utils, is the consumer in equilibrium? Explain why or why not. If the consumer is not in equilibrium under conditions in d), suggest another combination that would possibly achieve equilibrium. Explain your answer.
Carol has very weird preferences. She only cares about quantity. When evaluating a bundle, Carol only looks at the highest amount of a good she can consume in each bundle, regardless of whether it is of eggs or dumplings. She is indifferent between two bundles only when the largest consumption of a good within each bundle is the same across bundles. So, for instance, if a bundle offers 5 eggs and 1 dumpling she finds that bundle indifferent to a bundle offering 4 eggs and 5 dumplings. These preferences are transitive. But are they monotone? And convex?
You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the following table. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X.
Suppose Naomi consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and the price of good 2 was $3.20. Given these prices, Naomi maximized satisfaction consuming bundle A, as indicated in the figure to the right. However, this year, the price of good 1 has increased to $6.00 and the price of good 2 has changed to $2.40. Given these prices, Naomi would be equally well off at consumption bundle B. Calculate a Laspeyres cost-of-living index for Naomi using 100 as the base for last year. In particular, the Laspeyres index for this year is. (Enter your response rounded to two decimal places.) The Laspeyres index suggests inflation has been percent over the year. (Enter your response rounded to two decimal places.) The Laspeyres cost-of-living index overstates the rate of inflation because it assumes that consumers do not alter their consumption patterns as prices change. Naomi's true cost-of-living increase has been percent. (Enter your response rounded to two…
You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (price–quantity-demanded table) for X.
Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and the price of good 2 was $5.00. Given these prices, Natasha maximized satisfaction consuming bundle A, as indicated in the figure to the right. However, this year, the price of good 1 has increased to $6.00 and the price of good 2 has changed to $3.75. Given these prices, Natasha would be equally well off at consumption bundle B. Calculate a Laspeyres cost-of-living index for Natasha, using 100 as the base for last year. In particular, the Laspeyres index for this year is. (Enter your response rounded to two decimal places.) The Laspeyres index suggests inflation has been percent over the year. (Enter your response rounded to two decimal places.) The Laspeyres cost-of-living index overstates the rate of inflation because it assumes that consumers do not alter their consumption patterns as prices change. Natasha's true cost-of-living increase has been percent. (Enter your response rounded…
Heather and Jeremiah both enjoy sunflower butter (s) and jelly (j) sandwiches, but they have varying preferences regarding the optimal ratio of the two. Heather prefers her sandwiches to have 6 spoonfuls of sunflower butter for every 3 scoops of jelly, whereas Jeremiah prefers 3 scoops of sunflower butter for every 5 scoops of jelly. They both would prefer as many sandwiches as possible, but derive no utility from sandwiches without their preferred ratio of s and j. A) Write down a utility function for both Heather and Jeremiah regarding consumption of s and j (U(s,j)) B) On the same graph, draw a set of indifference curves for both Heather and Jeremiah, labeling which is which. C) In addition to s and j, Heather and Jeremiah now need bread, b, to make sandwiches. Heather prefers to separate her sunflower butter and jelly and therefore uses 3 slices of bread per sandwich. Write down Heather’s utility function Uh(s,j,b) as a function of the three inputs.
Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and the price of good 2 was $5.00. Given these prices, Natasha maximized satisfaction consuming bundle A, as indicated in the figure to the right. However, this year, the price of good 1 has increased to $6.00 and the price of good 2 has changed to $9.60. Given these prices, Natasha would be equally well off at consumption bundle B. 100- 90- 80- Calculate a Laspeyres cost-of-living index for Natasha using 100 as the base for last year. In particular, the Laspeyres index for this year is (Enter your response rounded to two decimal places.) 70- 60- 50- 40- 30- 20- 10- L1 0- 10 20 30 70 80 50 60 Good 1 40 90 100 Good 2
Suppose a consumer has income of 1000, and buys pizza and coke. The price of pizza is 100 and price of coke is 50. Draw a budget line that represents the set of bundles this individual can afford if they use all their income. (Put movies on the X axis). Label the places where the budget line intercepts each axis and the slope of the line. Suppose that in consumer equilibrium this individual consumes 7 pizza and 6 coke. What rules must hold in consumer equilibrium? Label this bundle in your drawing (call it point “A”). Draw an indifference curve associated with this bundle, and explain how its slope at the equilibrium point relates to the slope of the budget line. Consider the bundle 2 pizza and 8 coke. Label this point. What can you say about the slope of the indifference curve that passes through the point? (For example, is it bigger than, equal to, or smaller than -1?) Now suppose that income goes up to 15oo. Illustrate how the budget constraint will change. If both goods are…
Suppose that U(f,c) = f + 8c^(1/2)is a utility function that describes Amelia’s preferences over two goods: fish(f)and custard (c). For the following, think of fish as the good graphed on the horizontal axis.a. Derive an expression for her marginal utility (Uf)from a small increase in f holding c fixed. Also find themarginal utility for custard (Uc).b. What is Amelia’s marginal rate of substitution (MRS)? Give a brief (2 sentences maximum) intuitivedescription of what MRS represents. If Amelia has 4 units of custard, holding her utility constant, howmany units of custard would she be willing to give up in order to get one more unit of fish?c. Graph Amelia’s indifference curve for a utility level of 40. Be sure to specify at least 3 bundles of goodson the indifference curve.d. Does the fact that Amelia’s indifference curve intersects with the custard axis violate any of the 5properties of indifference curves? Briefly support your answer.e. Give another utility function that represents…
Revealed Preference is when an individual's behavior reveals information about a person's tastes and preferences,i.e. what he likes and dislikes and how much he likes or dislikes a good. The individual demand schedule and an individual's demand curve reveals a person's tastes and preferences for a good. Specifically it reveals how much each successive unit of the good he consumes is worth to him. We can say this differently by saying the maximum price a person is willing to pay for a particular unit of the good is how much that unit of the good is worth to him. This value is revealed by his behavior or his willingness to voluntarily give a certain amount of money in exchange for that unit of the good. In other words, how many units of a good a person demands/buys at any given price. Look at the images below. multiple choices can be correct. which answers are correct? look at graph.
Revealed Preference is when an individual's behavior reveals information about a person's tastes and preferences,i.e. what he likes and dislikes and how much he likes or dislikes a good. The individual demand schedule and an individual's demand curve reveals a person's tastes and preferences for a good. Specifically it reveals how much each successive unit of the good he consumes is worth to him. We can say this differently by saying the maximum price a person is willing to pay for a particular unit of the good is how much that unit of the good is worth to him. This value is revealed by his behavior or his willingness to voluntarily give a certain amount of money in exchange for that unit of the good. In other words, how many units of a good a person demands/buys at any given price. Look at the image.