To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

Question

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Answer 1

Question

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

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Q.7 A consumer's utility function is given by the expression: U = (0.6Xx5 + 0.4Y5). • Determine the marginal utility functions for each commodity. Does marginal utility decrease when consumption increases? Assuming that the price of good X is Rs 15 and the price of Y is Rs 6, write the equation of the budget line and plot it when income is Rs 450. What is its slope? What does it indicate? Calculate the marginal rate of substitution of Y for X and interpret its economic meaning. Write the equation showing consumer's equilibrium condition. Obtain the equilibrium values of X and Y. Find the expressions for change in MUx due to increase in Y and change in MUy due to increase in X.

The goods in the next question are not ale and bread. To solve this question, you are going to have to evaluate the condition The price p is defined for you, but you will have to define the marginal rate of substitution for yourself. What ratio of marginal utilities should you use? You will know the answer to this question once you have defined the marginal rate of substitution – that is, decided which good is being given up and which good is being given in compensation. When making this decision, remember that both sides of this equation refer to the same kind of trade. The right-hand side describes the rate at which one good can be traded for the other in the marketplace; and the left-hand side describes the rate at which someone is willing to trade that good for the other. Thus, the definition of the price determines the manner in which the marginal rate of substitution must be defined. Pierre lives on red wine and blue cheese. His utility function is. where w is his…

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $28 and the prices of J and K are $8 and $4, respectively? Multiple Choice a. 172 utils b. 168 utils c. 188 utils d. 72 utils Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Answer 2

Question

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

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Answer 3

Question

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

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Answer 4

Question

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

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Answer 5

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

Answer 6

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

Answer 7

Chapter 3, Problem 3.5P

A

To determine

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

Answer 8

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

Answer 9

B

To determine

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

Answer 10

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

Answer 11

C

To determine

To prove: the regular demand curve intersects various compensated demand curves.

Answer 12

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

Answer 13

D

To determine

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 3.2 - Prob. 1MQ Ch. 3.2 - Prob. 2MQ Ch. 3.3 - Prob. 1TTA Ch. 3.3 - Prob. 2TTA Ch. 3.3 - Prob. 2MQ Ch. 3.4 - Prob. 1TTA Ch. 3.4 - Prob. 2TTA Ch. 3.5 - Prob. 1MQ Ch. 3.5 - Prob. 2MQ Ch. 3.7 - Prob. 1MQ

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

Solution Summary: The author explains that the concept of Consumer Equilibrium represents the state of balance among the number of goods and services that a consumer can buy at their current level of income and existing levels of prices.

Concept explainers

To Prove: that for any given initial utility maximizing position, the compensated demand curve and the regular demand curve pass through the same price and quantity point.

To Prove:that the compensated demand curve is normally steeper than the regular demand curve.

To prove: the regular demand curve intersects various compensated demand curves.

To prove:the regular demand curve for pizza will be sloping downward and the compensated demand curve will be vertical.

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Chapter 3 Solutions