suppose a consumer's marginal rate of substitute is three slice of pizza for one coke . if the price of coke is $1 and the price of three slices of pizza is $2 , would the consumer change his on her consumption combination

Q: Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these…

A: The budget line shows the alternate combination of two goods which can be purchase given income of…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: Good X = home cooked good Good y = restaurant meal Equation of budget line : 150x+ 260y = 2500

Q: Suppose that the price of commodity Y is $ 20 per unit while the price of commodity X is $ 15 per…

A: The consumer would always want to maximum amount of the goods and services given the budget income.…

Q: John works at Frito-Lay distribution center. He is paid $20 per hour and can choose how many hours…

A: The payment of per hour = $20 Additional benefit after 30 hours of working = $100

Q: Suppose that Turkish consumers pay twice as much for oranges as they pay for apples, whereas…

A: Given the tastes of the consumer, a rational consumer seeks to maximize the utility or satisfaction…

Q: If a consumer is consuming a combination of goods and services on his budget line, has the consumer…

A: The budget line is the graphical representation of all the possible combinations of two different…

Q: Mika earns $232 per week which she spends entirely at the grocery store, purchasing either food or…

A: In the consumer theory, an individual maximizes his utility by consuming at a point where the…

Q: The initial budget constraint (BC¡) shows the Lacostes' budget constraint when the price of a fancy…

A: A compensating variation is the amount of extra money that a consumer will need to reach to their…

Q: 1. X1 and x2. The price of x, is $80 per unit and the price of x2 is $40 per unit; x1 and x2 are…

A: Disclaimer :- As you posted multipart questions we are supposed to solve the first 3 questions only…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A: The budget line and the optimal consumption point are found out as follows:…

Q: If a consumer has chosen optimally, their Marginal Rate of Substitution is equal to the price…

A: Marginal rate of substitution (MRS) is the rate at which an individual will be willing to substitute…

Q: In economics, we have learned that related goods’ price does matter. Given the budget constraint and…

A: Related goods are of two types complementary and substitute. Complementary commodities are those…

Q: Which is the correct answer ? Suppose there are 10 apples and 10 oranges in the economy. Joe is…

A: The correct answer is - A. A decrease in the orange price relative to the apple price.

Q: Efficiency requires that no more trades can be made between people, or equivalently, that their…

A: The Marginal Rate of Substitution (MRS) is the rate at which the consumer is willing to trade one…

Q: The second half of the question

A: The marginal rate of substitution (MRS) is the rate at which consumers can give up quantity of good…

Q: If an allocation is Pareto optimal and if indifference curves between the two goods have no kinks,…

A: A Pareto-optimal economy is one in which no economic adjustment benefits one individual without…

Q: Is it reasonable to assume that people seek to equate the marginal utility/price ratios of the goods…

A: Introduction: The complete satisfaction gained from consuming an item or service is known as…

Q: lives on an island economy and consumes only coconuts. Her utility function is given by u= √C, C is…

A: Utility is the satisfaction which is derived from consumption of good.

Q: A consumer's utility function is given by the expression: U = (0.6x*s + 0.4Y*s)*. • Determine the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Calculate the marginal rate of substitution if the consumer is will to leave good y from 100 to 60…

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

Q: Suppose that the price of commodity Y is $2 per unit while the price of  commodity X is $4 per unit…

A: A budget line shows all the combination of two goods that a consumer can purchase with his/her given…

Q: Economist George Stigler once wrote that, according to consumer theory, “if consumers do not buy…

A: Normal goods are those goods whose demand increases when the income of the consumer increases.…

Q: ity = XY + 3X. If prices of X and Y are Birr 4 and Birr 2 respectively; and if a consumer has an…

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

Q: uppose a consumer has preferences between two goods that are perfect substitutes. In this case would…

A: Two goods are substitutes in microeconomics if they may be utilized for the same purpose by the…

Q: Q.7 A consumer's utility function is given by the expression: U = (0.6x"s + 0.4y"s)*. • Determine…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: If Porsha views 3 glasses of juice as a perfect substitute for one cup of soda and vice versa, what…

A: If the juice and soda are perfect substitutes for each other then they both use in the place of each…

Q: he marginal rate of technical substitution Group of answer choices is the rate at which one input…

A: The marginal rate of technical substitution (MRTS):   MRTS is the rate at which the firm can trade…

Q: A consumer’s utility function is given by the expression:  ( ) 2 0.5 0.5 U = 0.6X + 0.4Y .  •…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Suppose that the price of commodity Y is $ 20 per unit while the price of commodity X is $ 15  per…

A: Any consumer have unlimited demand but have limited resources to satisfy the demand and due to the…

Q: Matthew said that he is exactly indiffferent between consuming four slices of pizza and one beer…

A: Marginal Rate of Substitution (MRS) is rate at which a consumer gives up some amount of Good X in…

Q: Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a…

A:

Q: Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is…

A: A utility function is said to be convex utility preference if its quasi concave which implies the…

Q: Timothy has a utility function that depends on the number of musicals and the number of operas seen…

A: Introduction- Utility is determined by a consumer, on the basis of happiness or satisfaction that he…

Q: What is the marginal rate of substitution (MRS) for the utility function U(x, y) = x° + y®? The…

A: Given: The utility function is: Ux, y = xp + yp To Find: The marginal rate of substitution of Good x…

Q: Diminishing marginal rate of substitution for a good means:     I. decreasing the quantity of a…

A: Generally, marginal substitution is reducing, which means a shopper picks the substitute instead of…

Q: Q.7 A consumer's utility function is given by the expression: i = (0.6À"s + 0.4y"s). • Determine the…

A: Note- Since, you've asked question with multiple subparts, we'll only solve the first three subpart…

Q: In the past, Andy received a university scholarship of Rp2,000,000 per month to purchase textbooks…

A: The utility notion is used to model worth or value.

Q: The marginal rate of substitution is the

A: Marginal rate of substitution (MRS) refers to the amount of one good that the consumer is willing to…

Q: Consider an indifference curve for someone deciding how to allocate time between work (and thus…

A: As the wages increase, the person would be willing to work more to earn more wages. So, he will give…

Q: If consumers buy less of a commodity when their incomes rise, this commodity is  ( an inferior good…

A: In the market, the change in the consumers buying decision depends upon two types of price effect,…

Q: Assume the price of good A goes up and the consumer decreases purchases of good A and decreases…

A: Luxury goods refer to the types of goods whose demand rises more than proportionally income rises so…

Q: Now suppose Andrew’s income increases by 50%: That is, he has 50% more money to spend than he did…

A: The budget constraint is a limited time limit — all possible combinations of operating costs…

Q: Assuming we have a choice where we work and how many hours we want to work, what determines the…

A: If an individual wants to earn a higher income, they will prefer to work over leisure. This implies…

Q: Given the following Cobb Douglas Utility function u(x1, x2) = x1cx2d.What is Marginal Rate of…

A: Answer- Need to find- Marginal Rate of Substitution MRS x1, x2  Given in the question- u(x1, x2) =…

Q: Mark can work up to 80 hours each week at a pre-tax hourly wage of $20 but faces a constant 20…

A: The budget line is downward sloping, indicating a tradeoff between income earned and the amount of…