Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 13, Problem 1IAPA
To determine
To explain:
The meaning that can be derived from the
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Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?
Aria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of food is $1.20/unit, and the price of clothing is $0.90/unit. Is Aria maximizing her utility?
Calculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places)
The Price of wine is 3
The Price of Cheese is 0.14
The Consumer's budget for wine and Cheese is 9.69
(WINE)
(WINE)
(CHEESE)
(CHEESE)
(CHEESE)
GLASSES
(WINE)
WEDGES
OF WINE
MARGINAL
OF CHEESE
TOTAL UTILITY
MARGINAL UTILITY
MARGINAL
TOTAL UTILITY
MARGINAL UTILITY
UTILITY/dollar
UTILITY/dollar
1
70
10
Number
Number
Number
Number
35
160
6
Number
65
Number
225
3
41
Number
Number
Number
Number
4
45
4.
288
Number
61
Number
48
349
The Quantity of Wine this consumer would buy to maximize utility is : Number
Number
The Quantity of Cheese this consumer would buy to maximize utility is :
What is the consumer's Total Utility when optimized : Number
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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