consumer attains maximum utility when: Select one: a) Marginal utility per dollar spent is positive for every good purchased b) Marginal utility per dollar spent is increasing for every good purchased c) Marginal utility per dollar spent is same for every good purchased d) Marginal utility per dollar spent is negative for every good purchased e) Marginal utility per dollar spent is decreasing for every good purchased

Q: A negative marginal utility implies that the consumer has reached a point of satiation.

A: Total utility, in economics, is defined as the total amount of satisfaction which a consumer…

Q: Find the demand equation using the given information. (Let x be the number of items.) A company…

A: Demand equation shows relationship between price and quantity demanded. It shows how much quantity…

Q: Total utility is 0 when marginal utility is 0 True/False

A: # Utility is a concept which helps us calculate the satisfaction a consumer gets when a good or…

Q: A consumer has the following utility function: U(X,Y)= 400X2/5Y3/5 Suppose that the price of a spa…

A: To solve the above problem we construct Lagrangian in which Total cost function with constraint of…

Q: What type of function is the utility function expressed as u(x,y)=30lnx + y? Also, how would you go…

A: A utility function u (x, y) speaks to a customer's inclinations. That is, a utility function gives a…

Q: Liz has a utility function of U(X,Y)=30XY, where X is food and Y is the composite good. The price of…

A: utility function is an important concept that measures preferences over a set of goods and services.…

Q: Prove that when the consumer is in equilibrium the marginal utility that is placed on the goods…

A: The budget line shows the combination of two goods that a consumer can purchase with the available…

Q: Consider the utility function: U(x,y)= -4(3x-12)² - (2y-10)² Determine the marginal utility for…

A: The marginal utility can be defined as the extra utility received from the consumption of one more…

Q: a) What is the utility maximizing choice of food and clothing?  b) How would the utility maximizing…

A: For a consumer the utility function for two goods, food (F) and clothing (C) is given as: U(F, C) =…

Q: 6)       According to the law of diminishing marginal utility, _________? A) Additional consumption…

A: Law of diminishing marginal Utility: It says that by consuming more goods marginal utility will…

Q: Which of the following statements is/are true about inferior good? It is a good whose demand curve…

A: Demand for goods shift to the right when people start consuming more and demand shift to the left…

Q: The marginal utility derived from the consumption of extra unit of commodity. True/False

A: Utility in economics refers to the pleasure or usefulness that a person gets from consuming a good…

Q: True/False Marginal utility refers to the satisfaction or pleasure that occur due to the…

A: The satisfaction or pleasure that a person experiences after using a good or service is referred to…

Q: b) For the utility function above, what is the cross-price elasticity of demand for good x with…

A: Here we will find the demand equation of x good and y good . And cross ELASTICITY of demand can be…

Q: compute the marginal utility of good X (MUX) and the marginal utility of good Y (MUY). b. U=U ( X…

A: Answer: Given, Utility function: U ( X ,Y )=X0.5Y0.4

Q: Let a1 and a2 denote the quantities consumed. The consumer's preferences are represented by the…

A: We have Utility function U(x1,x2)=x1+x2            ... (1) Consumer income m=100 Price of good 1:…

Q: You have £20 per week to spend, and two possible uses for this money: telephoning friends back home,…

A:

Q: (Review Question) Sarah consumes both wine (x) and cheese y) and considers them perfect substitutes.…

A: Utility: Utility for a consumer can simply be defined as the want-satisfying power that a good…

Q: With a total budget available of $56.00, what does the utility-maximizing rule tell you the optimal…

A: We can easily see if we take 2 quantity each that is 2*14+2*14 = 28+28 = $56 which is within our…

Q: According to the law of diminishing marginal utility: Omarginal utility falls with the extra…

A: The law of diminishing marginal utility depicts that the marginal utility derived from each extra…

Q: he total area ind the démand curve of a good, measures- A) Marginal utility B) Total utility C)…

A: According to the given question The main aim of the demand curve is to depict the relationship…

Q: (B) Same setup as (A) with u(x, y) = ax + y and ap<1. What is the demand for X? (a) x(p, m) = m (b)…

A: Given  The utility function: u(x,y)=αx+y          ....(1) Here αp&lt;1  The price of good x is 1 and…

Q: Question 1 Consider a consumer with utility x₁2/3x21/3 and a budget constraint of 3x1+6x2 $100. What…

A: To maximize utility, we can use the Lagrangian method by setting up the following function:   L(x1,…

Q: Describe how rational consumers maximize utility by comparing the marginal utility-to-price ratios…

A: Utility is defining as the level of satisfaction receives while consuming the goods and marginal…

Q: EXERCISE 6 If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy…

A: Utility function : U(G , N ) = 30G + 2N  If Ginna Spends half of her budget (150/2 ) , she could buy…

Q: A consumer can maximize utility relative to their budget if they consume where   Question 22…

A: Utility maximization is the ultimate goal of consumers.

Q: demand increases, at the new equilibrium: a) the price of the good decreases and the amount…

A:

Q: If a good is an "inferior good", then people feel inferior when they buy it people buy less of this…

A: Inferior goods refer to those goods which demand decreases due to rise in individual income and…

Q: You were presented with a utility maximizing rule which states: If you always choose the item with…

A: A state of maximal satisfaction is referred to as Consumer's Equilibrium. The consumer's equilibrium…

Q: Marginal benefit A) is the total benefit from all units consumed. B) is constant as more of a good…

A: Answer to the question is as follows:

Q: For each of the following utility functions get the marginal utility of consumption of each of the…

A: This can be defined as a concept that shows that when a purchaser purchases an extra unit of any…

Q: Two goods are complements if a decrease in the price of one good   A) decreases the quantity…

A: Complementary goods are specific types of goods that are used together or enhance each other’s value…

Q: Suppose a consumer had a utility function given by: U= 9X + 4Y. If the price of Good X (Px) is $10…

A: The utility problem is given as The price of good X is $10.The price of good Y is $4.The budget for…

Q: Consumer satisfaction from consuming goods X and Y is as follows: U=10X+14Y-X2-Y2 and consumer…

A: Consumer equilibrium is the situation where he gets maximum satisfaction level of utility with given…

Q: Suppose we have a market with 200 individuals with preferences over two goods, x and y. 1. Consider…

A: Since you have posted multiple subparts, as per Bartleby guidelines, we can solve only the first 3…

Q: The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(1,2)y^(6).…

A: The utility is the amount of satisfaction that a consumer derives from the consumption of goods. The…

Q: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: When marginal utility is positive, total utility____

A: Marginal utility is the additional utility derived from having an additional unit of commodity.…

Q: When demand increases, O A) the price is lower at any level of quantity demanded. B) the demand…

A: Demand:- demand is a simple concept, demand implies the Quantity demanded of a commodity by all…

Q: Tom went to a pizza by the slice bar with Jerry. Tom loves pizza (x), and prefers it, even more,…

A:

Q: The slope of which of the following curves is a negative number? A curve that depicts total utility…

A: The answer is - 2. A curve that depicts marginal utility of an individual.

Q: (A) Suppose an individual who derives utility u(x, y) from consuming a units of the good X and y…

A:

Q: The fact that consumers are almost always happier with more of a good is called taste for variety…

A: Economics is the study of production, distribution and allocation of resources. It has two branches-…