Table 4.2 Product Quantity Price Shoe 40 $60.00 DVD 100 18.00 Tomatoes Ketchup 2,000 300 1.00 4.00 40) Refer to Table 4.2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals A) $83.00. B) $5,800. C) $7,400. D) $6,400.

If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unit

5. Marie has a weekly budget of $42, which she likes to spend on magazines and pies. a. If the price of a magazine is $7 each, what is the maximum number of magazines she could buy in a week? maximum of magazine = 6 magazines a week b. If the price of a pie is $21, what is the maximum number of pies she could buy in a week? maximum of pies = 2 Pies a week c. What is Marie's opportunity cost of purchasing a pie (in terms of magazines)? d. At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives from this pie is greater than or less than her opportunity cost of purchasing the pie? e. Marie is thinking about purchasing a second pie. Do we expect the marginal utility she receives from the second pie to be greater than, less than, or equal to the marginal utility she receives from the first pie? Explain your answer.

Units of the Good 0 1 5678AWN2 3 4 Total Utility Total Utility of X of Y 0 0 620 1740 1120 3030 1500 3960 1820 4710 2080 5280 2300 5730 2460 6060 2580 6300 For the next 3 questions, assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $20 and $30. If the consumer buys the fourth unit of X the Marginal Utility per Dollar Spent on X is 16 I If the consumer has $210 to spend on X and Y, the utility-maximizing bundle is The minimum budget necessary to move to a higher equilibrium consumption of X and Y is $ unit(s) of X and unit(s) of Y.

3. Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. a. Given this information, construct the equation for Akua's Budget Line. b. The following are the bundles that Akua can afford with her income: Yoghurt Bread 10 0 80 20 Fill the blanks in the table with the quantities that will exhaust Akua's income. c. Akua gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10? d. Assume that prices are the same as used in part a. If the marginal utility of a Yoghurt is 20, what is the marginal utility of Bread if she is maximizing her utility? e. Now assume that Yoghurt and Bread are compliments for Akua. For her to consume all her income of GHS…

Use the graph to answer the following: 1. At the optimal consumption point, approximately how many armadillos will be consumed? 2. Approximately how many apricots will be consumed? 3. If this consumer spent all his income on armadillos, how many armadillos could he buy? 4. If his income decreased, what would it look like? Draw the appropriate shift on the graph.

Give typing answer with explanation and conclusion

Graph is necessary

Layout References Review View Help Editing v s New Ro... v 12 A er s A B IU A v A ... b. C. d: e. 3. The table below demonstrates the total utility Terrence derives from eating different quantities of plates of thanksgiving dinner. Calculate the marginal utility for each plate then graph the total utility and marginal utility (with total utility graph above the marginal utility graph lining up the Qty). Quantity of Plates Total Utility from Plates Marginal Utility from Plates 1 250 2. 380 425 375 300 English US) Te Piedictions, On Bred 71°F Clear re to search

This question concerns a person in an economy in which they only consumetwo commodities, coffee and cake. This person always consumes thesecommodities together in a fixed ratio; whenever they drink a cup of coffee, theyeat a single cake.This person has a budget of £99 to spend on coffee and cake. a.  Price of coffee is £2 and the price of a cake is £1. ii. Price of coffee is £8 and the price of a cake is £1 iii. Price of coffee is £10 and the price of a cake is £1. b. Using the information from part a, draw an individual demand curve for coffee for this person. Briefly explain how you used the information frompart a to create the demand curve. c. Assume the price of coffee is £2 and the price of a cake is £1. This personnow decides to limit their consumption of coffee to one cup of coffee a dayand one cake a day. Discuss how this decision to limit their consumptioncontradicts the axioms of behaviour for consumption