EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 2.3, Problem 2MQ
To determine
To find the way to use the transitivity to rank the points.
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Suppose Ed's utility from the consumption of martinis (m) is proportional to the
number he drinks: U(m) = m. Further, Ed is particular about his martinis: He enjoys
them in exactly three parts of gin (g) to one part vermouth (v). So we can write the
utility as:
U(m) = U (g, v) = min (g, 3v).
(a) Provide a sketch of Ed's indifference curve in the (g, v)-space for various level of
utility.
(a) Let the prices be p, and p, and Ed's income be I. Find the demand functions
for 9 and v [Hint: Use the proportional rule and budget constraint. No need for
differential calculus]
(b) Using the results in (b), what is Ed's indirect utility function?
(c) Find the expenditure function; given a level of utility U, and prices pg and Pv.
Mika earns $232 per week which she spends entirely at the grocery store,
purchasing either food or alcohol.
The price of food is $1/unit, while the price of alcohol is $3/unit.
If Mika receives an additional $75/week in food stamps that can only be only
be used to buy food at the grocery store (so, this money could be used to buy
food but NOT alcohol), what is the vertical coordinate of the vertical intercept
of Mika's budget constraint if she were to graph quantity of food on the
horizontal axis and quantity of alcohol on the vertical axis?
(Note: The answer may not be a whole number, so round to the nearest
hundredth)
(Note: The numbers may change between questions, so read carefully).
If marlow obtained 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe
Chapter 2 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 2.1 - Prob. 1TTACh. 2.1 - Prob. 2TTACh. 2.3 - Prob. 1MQCh. 2.3 - Prob. 2MQCh. 2.3 - Prob. 1TTACh. 2.3 - Prob. 2TTACh. 2.3 - Prob. 1.1MQCh. 2.3 - Prob. 2.1MQCh. 2.5 - Prob. 1TTACh. 2.5 - Prob. 2TTA
Ch. 2.7 - Prob. 1MQCh. 2.7 - Prob. 2MQCh. 2.7 - Prob. 3MQCh. 2.8 - Prob. 1MQCh. 2.8 - Prob. 2MQCh. 2.8 - Prob. 1.1MQCh. 2.8 - Prob. 2.1MQCh. 2 - Prob. 9RQCh. 2 - Prob. 2.1PCh. 2 - Prob. 2.2PCh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.5PCh. 2 - Prob. 2.6PCh. 2 - Prob. 2.7PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.9PCh. 2 - Prob. 2.10P
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