Suppose a consumer has a fixed amount to spend each week on iTunes songs ($1 each) and movies ($6 each). For the combination she chose this week, the marginal utility of movies is 30 and the marginal utility of songs is 3. For next week she should (increase/decrease) the number of songs and ___________(increase/decrease) the number of movies.

Q: Fill in the marginal utilities for the table. Marginal utility falls by when the number of movie…

A: The utility gained from consuming an additional unit is referred to as marginal utility. Total…

Q: he following table shows Linda's utility from drinking coffee and eating cake. The price of coffee…

A: The Law of Diminishing Marginal Utility refers to the decrease in additional utility when more and…

Q: Total utility ______ at a ______ rate with every additional purchase of a good/service. Group of…

A: The question is asking about the behavior of total utility as more of a good or service is consumed.…

Q: Quanity Utility from Video Games Utility from Novels Marginal Utilty  Video Games Marginal…

A: Utility: Utility is the wants satisfying power of a good, which can be measured numerically. It is…

Q: Livi consumes both sushi (s) and green tea (t).  The following table shows her marginal utility…

A: The utility is the amount derived by consuming a product, which can satisfy human wants.Although the…

Q: Assume that a consumer has a given budget or income of $12 and that she can buy only two goods,…

A: Budget is the amount of income that a consumer has to spend on goods and services.

Q: David spends his budget on chocolate and chip. His utility function is given by U(q₁, 92) = 29192,…

A: Given  David utility function: U(q1, q2)=2q1q2         ..... (1) Where q1 denotes the number of…

Q: Suppose you have $20 to spend on pizza and coke. Suppose you spent all your money and that the…

A: Budget constraints shows the relationship between two goods , it's prices and income of consumer.…

Q: 23. Suppose that there are two goods in an economy and that all prices double. At the same time, the…

A: A budget line is a graphical representation of the limit of what a consumer can afford to buy with a…

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility…

A: Utility refers to the total amount of satisfaction that derived from the consumption of goods and…

Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…

A: Laspeyres Index is a consumer price index used to calculate the change in prices of a basket of…

Q: The nearby graph shows Claudia's budget constraint for purchases of shoes and purses. Claudia's…

A: A budget line is the graphical representation of different combinations of goods to be purchased for…

Q: A consumer has an expenditure function given by E = U (²+2). When the consumer has an income of 100,…

A: The maximum utility can be defined as the highest level of satisfaction, well-being, or benefit that…

Q: Annie's current level of consumption, let MUp denote Annie's marginal utility from an additional…

A: Marginal utility (MU) is a concept in economics that implies the additional satisfaction or benefit…

Q: 2. Maria likes to have one cup of coffee (x) and two slices of bread (y) each morning. Which of the…

A: A utility function:The utility function is a function that shows the preferences of the consumers,…

Q: Refer to Figure. If point C is the consumer's optimum and the price of chocolate chips is $4 per…

A: Intercept of the Budget Line: The intercepts refers to the point where the budget line intersects…

Q: 3. The law of diminishing marginal utility means: The marginal utility of consuming successive units…

A: Total utility refers to the satisfaction of the consumer that is attained after consuming a…

Q: 1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you…

A: The cardinal approach to studying consumer behavior uses the law of equi-marginal utility. This law…

Q: Consumer Theory Daniel spends all his money on only two goods: chocolates (good 1) and milkshakes…

A: Individual preferences can be characterised utilizing indifference curves when certain requirements…

Q: 1. Suppose that on the island, the currency is shell beads. The going price for coconuts is 2.4…

A: It is always widely accepted and used that a consumer should consume at that point where the…

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: Jill likes to consume coffee and cream in a very particular way: with every cup of coffee she…

A: Jill is a utility maximizer. She decides to spend her income is $120 per month on coffee and cream.…

Q: Price of Can of Beer = $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total…

A: Budget Line 10.5 = 0.5B + P21 = B + 2P (By duviding 0.5) MU = Change in TU/Change in Q

Q: A consumer has preferences for coffee and pancakes that are complete, continuous, transitive,…

A: Preferences refer to an individual's or a group's subjective ranking or ordering of various goods,…

Q: Anthony has set aside $120 each month for his favorite activities-buying records and going to…

A: Hicksian Substitution effect: In this case some changes in income are being provided to the consumer…

Q: Carl has $8 to spend on some combination of apples, bananas, and coconuts. Apples and bananas cost…

A: In economics, utility refers to the level of satisfaction or benefit that a person derives from…

Q: Utility is a type of function that occurs in economics. When a consumer receives x unils of a…

A: The utility function provides a measure of the overall satisfaction (denoted by 'U') that an…

Q: Suppose a trip to the theater costs $10, but gives 40 units of utility to a consumer. A trip to the…

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

Q: Assume that a consumer has a given budget or income of $12 and that she can buy only two goods,…

A: To determine how many apples or bananas the consumer can buy with a budget of $12, we can calculate…

Q: Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of…

A: It can be defined as the  quantitative measure of an individual level of satisfaction and preference…

Q: Refer to the information provided in Figure 6.8 below to answer the questions that follow. C) 25. D)…

A:

Q: A consumer has Cobb-Douglas preferences for beer and pizza. She spends 50% of her budget on New…

A:

Q: Suppose you are thirsty and you want to quench your thirst with water. You observe that the first…

A: Marginal utility refers to change in total utility due to the consumption of one additional unit of…

Q: 42.Jacob works while sipping mugs of green herbal tea. He does, however, know that after the fifth…

A: The answer is as follows:-

Q: Sarah has a budget of 58. Her utility function if U(x,y) = x*y. %3D The price of good x is 1, the…

A: Given: Budget = M=58 Price of good x = 1 Price of good y = 8 Budget constraint equation: Pxx+Pyy=M…

Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…

A: Answer: Given, Utility function: U=3PC Price of pop PP=$1Price of Candy PC=$0.5Total income M=$10…

Q: Kate’s utility function includes coffee (c) and sugar (s). She only consumes coffee and sugar…

A: When a consumer consume a good, they drive utility from it. The amount of change in utility gain…

Q: 9. Refer to the following table to ANSWER the following question: The marginal utility of the third…

A: Utility refers to the satisfaction or happiness that a consumer get form the consumption of a goods…

Q: Consider a consumer who must allocate their available income between the consumption of two goods,…

A: Marginal utility refers to the additional utility derived from the consumption of one more unit of…

Q: O D. The marginal utility of the 80th unit is less than that of the 120th because the graph…

A: Utility is the satisfaction level which is measured in utils derived from the consumption and it…

Q: Suppose that with a budget of $210, Fatima spends $126 on sushi and $84 on bagels when sushi costs…

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

Q: Mylie's total utility from singing the same song over and over is 70 utils after one repetition, 110…

A: To find total utility, we find the difference in two successive TU for each additional repetition.…

Q: 10.6 For every two boxes of strawberries that she consumes, Millicent insists on having one pitcher…

A: The consumer takes 2 boxes of strawberries and 1 pitcher of cream.The utility function for the…

Q: The nearby graph shows Claudia's budget constraint for purchases of shoes and purses. Claudia's…

A: A budget line shows the various combinations of two commodities that a consumer can buy using his…

Q: Consider the figures to the right. Suppose that the individual currently consumes 5 digital apps.…

A: Total utility is the measure of the overall satisfaction received from the consumption of the goods…

Q: When diminishing returns are present in consumption, the relationship between total utility and…

A: Diminishing marginal utility is an idea in financial matters that depicts the decline in extra…