For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming.   Billy's mom increases his weekly allowance by %5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are

Q: Show and explain the effects in kind payments and cash payments on individual’s utility by using a…

A: We will take the example of food and non-food products for better understanding the in kind payments…

Q: Suppose the Income elasticity of demand for toys Is -0.8. This means that Multiple Choice a 6…

A: The income elasticity of demand is an economic measure of how responsive a good or service's…

Q: Using graph, explain when consumer is in equilıbrıum? Draw the graph ( curves )

A: Consumer equilibrium can be referred to as the position of maximum satisfaction. A consumer attains…

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: Calculate the marginal utility .. # of cookies per day           Total Utility per Day 0…

A: Utility refers to the satisfaction. The aim of the consumer is to maximize the utility. Total…

Q: Total utility rise from 10 to 18 and the total quantity rise from 1 to 2  Calculate the marginal…

A: # the term marginal utility simply measures the change in utility taking place when the consumption…

Q: The table shows Wanda's total utility from ice cream and nuts. Ice Cream Nuts The price of an ice…

A: Total utility is the total satisfaction derived from consuming the good. Marginal utility is the…

Q: Abby's marginal utility per dollar spent on bananas is 15 and her marginal utility per dőllar spent…

A: Since Abby's Marginal utility per dollar spent on bananas is $15 and her Marginal utility per dollar…

Q: 1. You have a budget of $125 per month that you can spend digital music or eating dinner. Each…

A: The utility of the digital album and dinner is given below:AlbumsDinnerNo per weekTUNo per…

Q: 1. You have a budget of $125 per month that you can spend digital music or eating dinner. Each…

A: Utility maximizes when:-                                MUxPx=MUyPy where;  MUx=Marginal utility of…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Consumer equilibrium:  A consumer attains equilibrium at a point where the per-dollar marginal…

Q: Suppose the marginal utility for a $5 submarine sandwich is 100. In addition, the marginal utility…

A: When an individual has two goods to consume, his utility Maximizing situation is when he is getting…

Q: Price of candy New price of Price of ice cream cones = 5.00 2.50 candy = $ 1.25 Quantity of Ice…

A: When price of ice cream cone is $5.00 Price of candy is $2.5 Then the optimum consumption will occur…

Q: Using the consumer choice theory, explain how an individual decides what combination of different…

A: The consumer choice theory can be understood as a theory that explains the change in consumer…

Q: The table details the total utility that J.J. gets from going to see basketball and hockey games…

A: Marginal utility is the utility derived from the consumption of additional unit.    Marginal utility…

Q: If iPad is considered a normal good, when income in Camarillo goes up, the effect on iPad in…

A: In a market, if a good is a normal good, it will have an inverse relationship with the price, and a…

Q: Thomas spends his entire food budget on soup and pasta. His preferences are complete, transitive,…

A: In Microeconomics, price effect is the summation of substitution and income effect. When a consumer…

Q: Consider a consumer called Aphrodite who is a student at the University of Toronto. Aphrodite's…

A: As per given details:- 5 bars (Q1) of chocolate demand when income is $ 300 (Y1). 6 bars (Q2) of…

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: Price of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Slices per Week Total…

A: According to the question, the price of beer is $0.5 and pizza is $1.

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Every human has needs that must be met in order to improve their welfare as a whole. Utility is the…

Q: Refer to the graph below: Units of good Y 30 14 0 A 24 B U₂ 40 Units of good X The price of X is $30…

A: The budget line depicts the combination of X and Y that a consumer can afford under a given budget.…

Q: With diminishing marginal utility, how do consumers decide how much to consume? Students are…

A: A utility is the satisfaction derived from the consumption of goods and services . Utility is…

Q: Effect of an increase in income leads to: an increase in the consumer's utility. The statement is…

A: Income effect is the change in demand for a good or service caused by a change in a consumer's…

Q: The graph shows the budget line for a consumer who only buys cookies and magazines. If the…

A: Budget line is the graphical representation of different combinations of two goods that a consumer…

Q: Calculate the Marginal Utility then the MU/P to find Consumer Optimum. How many drink(s) and Big…

A: PLease check the step 2 for solution

Q: Raquel has an initial income of $1091 and a final income of $900. Raquel initially consumed 10) cups…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The table below shows the amount of total utility Cal gets from playing his favorite video game…

A: Marginal utility can be defined as the additional utility that a consumer would get by consuming…

Q: The total utility schedule of Sharon is given below for the number of shoes she  consumes.  i.…

A: Marginal Utility is the level of satisfaction derived from consumption of an additional unit of a…

Q: Using examples, does an increase in income affect a consumer’s budget line? Does it impact their…

A: Suppose, X is an individual consuming Grapes and pineapples. X’s income is 150. X gets utility by…

Q: 21. Which of the following is NOT the goal of the consumer? a. maximize utility b. maximize…

A: Consumer going through is the all out cash spent on conclusive merchandise and enterprises by people…

Q: Total Utility of Digital Apps per Digital Apps per Period Period (utils) 0 1 2 3 4 5 0 50.0 95.0…

A: We have to find the optimum consumer bundle. and expenditure on it.Optimum Consumer Bundle: When a…

Q: Based on the figure, what point will give the highest level of satisfaction? Point G, Y, D or B?…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of goods…

Q: A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they…

A: Marginal utility per dollar is the amount of utility obtained by the consumer from spending one more…

Q: For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad…

A: When a consumer's budget is completely depleted and the marginal utility per dollar for both…

Q: Peter consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His…

A: Utility maximization is a strategic theme whereby people and firms get to attain the highest level…

Q: If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10…

A: Given,  Ginna's budget is £150Her preferences are either groceries (G) or notebooks (N)Utility…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while…

A: Budget constraint shows the relationship between the two goods, their prices and the income of the…

Q: A) hot dogs are an inferior good, but not a Giffen good, for all levels of income. B) hot dogs are a…

A: Giffen  is just inferior goods. When  income effect  becomes greater than substitution effect…

Q: thing and food. the price of clothing is $50 and the price of food is 20. Hector spends his entire…

A: Budget constraint (or often addressed as budget line, BL) is the locus of all combinations of goods…