Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Question
Chapter 5.A, Problem 2TY
To determine
(a)
The number of tacos and hot dogs purchased by Mr. P.
To determine
(b)
The change in quantity of tacos and hot dogs when income increases.
To determine
(c)
The different basket of tacos and hot dogs when price of tacos increases to $3.
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Using the table below, fill in the quantity of Good X where the consumer will maximize his/her utility.
Assume the consumer only has $10.00 and Price of X is $1.00 each and the Price of Y is $1.00 each
Quantity of Good X
1
Quantity of Good Y
Marginal Utility of Y
Marginal Utility of X
150
140
125
2
120
130
90
80
70
60
50
40
30
3
4
6
A) 5
OB) 7
The consumer will maximize his/her utility by consuming.
C) 1
D) 3
120
110
F) 2
100
90
80
70
1
2
3
4
5
6
7
8
9
units of Good X.
ou are having lunch at an all-you-can-eat buffet. If you are rational, what should be your marginal utility from the last morsel of food you swallow?Marginal utility from the last morsel of food you swallow should be .
Tom has 500 dollars to spend on two goods, good 1 and good 2. The seller of good 1 offers Tom the following deal:
For every three units (of good 1) you buy, you will get the fourth unit for free.
Determine how many units of good 1 Tom will end up with if the price of good 1 is 3, the price of good 2 is 8, Tom spends
all his income on the two goods and buys 9 units of good 2. Then enter the value below.
Chapter 5 Solutions
Microeconomics: Principles & Policy
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