EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
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Question
Chapter 3, Problem 3.6P
To determine
(a)
The two indifference curve U1 and U2 with U2> U1 for hot dogs and chili is to drawn by placing the amount of the first good on horizontal axis.
To determine
(b)
The two indifference curve U1 and U2 with U2> U1 for sugar and sweet'Nlow is to drawn by placing the amount of the first good on horizontal axis.
To determine
(c)
The two indifference curve U1 and U2 with U2> U1 for peanut butter and jelly is to drawn by placing the amount of the first good on horizontal axis.
To determine
(d)
The two indifference curve U1 and U2 with U2> U1 for nuts and ice-cream is to drawn by placing the amount of the first good on horizontal axis.
To determine
(e)
The two indifference curve U1 and U2 with U2> U1 for apples and liver is to drawn by placing the amount of the first good on horizontal axis.
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A. Jack enjoys a cup of cappuccino every morning, which is made with equal parts of steamed milk (m)
and espresso(e). Suppose Jack's utility function U(m, e) = min(m, e). Graph Jack's indifference curves
when U = 4 and U = 8.
B. Leslie buys 2 goods: z and y. His utility function is U(z,y) = 5x+3y.
1.
Plot this consumer's indifference curves when U = 15 and U = 20.
What is the shape of Leslie's indifference curves?
3. For Leslie, how are these two goods related?
C. Leslie's friend Tim has a different utility function for the same goods U(x, y) = √zy.
1.
Plot this consumer's indifference curves when U = 15 and Ū = 20.
2. What is the shape of Tim's indifference curves?
D.
A consumer's utility function for goods 2 and y is U(z,y) = x+2y.
2.
1. Calculate the consumer's marginal utility for each good at (2,2) (Hint: marginal utility represents
the amount of utility the consumer gains by consuming one more unit of this good. You can…
The following table shows the total utility gained from the consumption ofFanta Lemon in a week.left is quantity and right is total utility
1-20
2-35
3-45
4-53
5-58
6-58
7-481. Calculate the marginal utility. What do you observe?2. Sketch the total utility and marginal utility curves.3. If the price of Fanta Lemon increases from Rs.8 to Rs.10, how will itaffect its consumption?Explain your answer using the data above.
1. Arya has an income of $150 per month. She spends on two goods: Burgers and Colas. The price of
a burger is $5 and the price of a cola is $2.
a. Using the information above, derive Arya's budget line equation with the quantity of cola
on the left side.
b. Arya's utility is maximized when 20 burgers and 40 colas are consumed. Draw an
indifference curve along with your budget line (with quantity of burgers on the x-axis) to
show Arya's best affordable point.
c. Suppose, income falls from $150 to $100. Show how your graph in part (b) will change?
d. Suppose, price of burger rises from $5 to $10. Show how your graph in part (b) will
change?
Chapter 3 Solutions
EBK MICROECONOMICS
Ch. 3 - Prob. 1RECh. 3 - Prob. 2RECh. 3 - Prob. 3RECh. 3 - Prob. 4RECh. 3 - Prob. 5RECh. 3 - Prob. 6RECh. 3 - Prob. 7RECh. 3 - Prob. 8RECh. 3 - Prob. 9RECh. 3 - Prob. 10RE
Ch. 3 - Prob. 11RECh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2PCh. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Prob. 3.8PCh. 3 - Prob. 3.9PCh. 3 - Prob. 3.10PCh. 3 - Prob. 3.11PCh. 3 - Prob. 3.12PCh. 3 - Prob. 3.13PCh. 3 - Prob. 3.14PCh. 3 - Prob. 3.15PCh. 3 - Prob. 3.16PCh. 3 - Prob. 3.17PCh. 3 - Prob. 3.18PCh. 3 - Prob. 3.19PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26P
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- 8. Normal and inferior goods Shen likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Shen's Indifference curves for going to ballgames and symphonies. With Shen's initial budget constraint (BC₁), he chose to go to five symphonies and three baseball games per month (point X). Then his budget constraint shifted to BC₂, and he chose to go to four symphonies and six ballgames per month (point Y). BALLGAMES 0 0 5 SYMPHONIES BC 8 goods. BC 10 ? of the following choices, which could have shifted Shen's budget constraint from BC, to BC₂? Check all that apply. The price of baseball tickets Increased while his income and the price of symphony tickets stayed the same. The prices of both baseball and symphony tickets decreased while his income stayed the same. His Income increased while the prices of baseball and symphony tickets stayed the same. His Income decreased while the prices of…arrow_forwardAnatoly's marginal utility for DVDS (D) is MU X and his marginal utility for Xbox games (X) is MUx D. Anatoly's income is $120, the price of a DVD is $20.00, and the price of an Xbox game is $10.00. How many DVDS and Xbox games does Anatoly consume to maximize his satisfaction? Anatoly consumesDVDs andXbox games. (Enter your responses using integers.)arrow_forward
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