June's evaluation of packets of nacho chips in terms of $MU is as follows: 1st packet: $4; 2nd packet: $3.50; 3rd packet: $2.90; 4th packet: $2.30; 5th packet: $1.60. If the price of nacho chips is $1.50, and June buys 5 packets, calculate her marginal consumer surplus for each packet and the total consumer surplus form all 5.

Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below. Units               MU P              MU P / P P                 MU B             MU B / P B   1st                   18                    6                                40                    8 2nd                  15                    5                                30                    6 3rd                   12                    4                                25                    5 4th                   9                     3                                 20                    4 5th                   6                     2                                 15                    3 6th                   3                     1                                  5                     1 If Raymond is maximizing his utility, then

What is the exact change in Jackie's consumer surplus. A+B7 How large is area 87 In this example, assume the price of music tracks (in pounds) increases from £0.6 to £1, as shown in the figure. Also, let Y be Jackie's income, which is £30. State Jackie's uncompensated demand function for music tracks given her initial budget Jackie has a utility function where is music tracks and is live music. Let py be the price of music tracks and let the price of live music be normalized to one If income, Y, is 30, what is Jackie's uncompensated demand for music tracks, 9₁? Jackie's uncompensated demand for music tracks, q₁, as a function of p Pounds pertrac 0.6 AA 6 10 Demand Music tracks 2

Refer to the graph below. Assume that the initial equilibrium in the market for bus rides is point A (30 rides per week). The price of bus rides increases and the equilibrium shifts to point B (20 rides per week). The income effect of the change in consumer behavior is the $ of other consumption 45 40 35 30 25 20 15 10 5 T T T T T T L B C A 5 10 15 20 25; 30 35 40 45 26 # of bus rides per week decrease of consumption by 4 decrease of consumption by 6 increase of consumption by 6

Don't use pen or paper

You’d be willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is:

You are a math tutor, and you offer in-home tutoring on weekday afternoons for $20 an hour. On Saturdays, you tutor students hourly for free at the community center. Since you follow the Rational Rule for Consumers, which statement can you conclude is TRUE? Your economic surplus rises or at least remains unchanged when you tutor at the community center. You couldn't gain any economic surplus from tutoring at the community center since you earn $0 per hour. You can't compare the two types of tutoring because you can't quantify how much donating your time means to you. O The time you spend tutoring the students on weekday afternoons lowers your economic surplus.

1. Let Amy derive utility each from housing, h, and a consumer good, z, with the following utility function: 1/ U=h¾/3₂¾3 M Her Mashallian demand equations are the following: h= and z=- 3ph 2M 3p₂ Amy lives in a city where everyone works downtown. While her income is $160 per month, her commute cost (bus pass) costs her $40 per month, so she only has $120 to spend on h and z. (we assume no time cost of the commute) The consumer good, z, has a price of $1 and the price of her housing, h, is $2 per unit. a. What is her quantity demanded of h and z and what level of utility is she currently enjoying? She is considering moving to a location further from work to a house where her commuting cost would be $60 per month (so she will have $100 to spend on z and h). The market adjusts ph and housing sizes across the city so that utility is the same at every location around the city. b. What is the equation for the appropriate demand function for housing in this city? C. What the price of housing…

Jay and Amile go trick-or treating. Initially, Jay gets Skittles and Amile gets a Kit-Kat. Neither of them has to pay anything for this candy. Their valuation of each good is given in the table below. They decide to trade. What is the new total economic surplus? Skittles Value Kit-Kat Value Jay Amile 2 1 A) 8 B) 6 C) 2 O D) 4

Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below. Units               MU P              MU P / P P                 MU B             MU B / P B   1st                   18                    6                                40                    8 2nd                  15                    5                                30                    6 3rd                   12                    4                                25                    5 4th                   9                     3                                 20                    4 5th                   6                     2                                 15                    3 6th                   3                     1                                  5                     1 If Raymond were given an additional $ and he could be pretzels and beer in fractional quantities he would spend that $…