Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Question
Chapter 6.A, Problem 14SQ
To determine
The marginal rate of substitution.
Option 'c' is correct.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The marginal rate of substitution measures the: extra utility that a consumer derives from successive units of a product. consumer's willingness to substitute one product for another so that total utility will remain constant. magnitude of the substitution effect. total utility received by a consumer when equilibrium is achieved.
es:
The rate at which a consumer is able to substitute one good for another is determined by the
Multiple Choice
indifference map.
consumer's preferences.
ratio of the prices of the goods.
marginal rate of substitution.
Question 28
The marginal rate of substitution measures the: extra utility that a consumer derives from successive units of a product. consumer's willingness to substitute one product for another so that total utility will remain constant. magnitude of the substitution effect. total utility received by a consumer when equilibrium is achieved.
Chapter 6 Solutions
Micro Economics For Today
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
Knowledge Booster
Similar questions
- The slope of the budget constraint is all of the following except …........ a) the relative price of two goods. b) the rate at which a consumer can afford to trade one good for another. c) constant. d) the marginal rate of substitution.arrow_forwardThe marginal utility derived from the consumption of extra unit of commodity. True/Falsearrow_forwardThe marginal rate of substitution is the maximum number of units of good Y that the consumer would willingly sacrifice for an extra unit of good X while keeping the satisfaction level unchanged. change in total utility when one more unit of a good is consumed. slope of the utility function. All of the above are correct.arrow_forward
- Suppose the weighted marginal utility for two goods x and y at a position of consumer equilibrium 70. If the price of good x is r10 and the relevant marginal utility for y is 140 what is the price of good y and the relevant marginal utility for xarrow_forwardPlease tell me which of the multiple choices in question 1.6)1.7)1.8) are correct.State only the correct ones please. 1.6) The marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount of one good that the consumer is willing to trade for one unit of the other. b. The ratio of the amounts of two goods. c. The change in the consumer’s utility when one good is substituted for another. d. The absolute value of the slope of the indifference curve. 1.7) (SEE ATTACHED PICTURE) The diagram shows that: Select one or more: a. If Angela works 24 hours a day she can still survive. b. There is a technically feasible allocation where Angela does not work. c. A new technology that produced more grain would give a larger technically feasible set. d. If Angela needed less grain to survive the technically feasible set would be smaller.arrow_forwardA consumer has an income of $400 and is deciding between two products: X and Y. Assume that the X product is the horizontal axis product. The price of X is $10 and the price of Y is $2. Assume the consumer currently wants to consume 50 units of product Y to maximize his utility. a) Write out the equation to this consumers budget line. What is the slope to this budget constraint? b) How much of X and Y will the consumer consume to maximize his utility subject to his budget constraint. C) Now assume the price of X changes to $5 and price of Y and Income stays the same. At the new price, the consumer wants to buy 60 units of product X to maximize her utility given her budget. How much X and Y will the consumer consume to maximize utility. g in the before and after the change of the budget constraint and indifference graph on the same graph space. Show all necessary points. Label clearly. ead oubstitutiofs. Draw d) Write out the expression of the utiiity maximizing ruie here.?arrow_forward
- A consumer has an income of $400 and is deciding between two products: X and Y. Assume that the X product is the horizontal axis product. The price of X is $10 and the price of Y is $2. Assume the consumer currently wants to consume 50 units of product Y to maximize his utility. a) Write out the equation to this consumers budget line. What is the slope to this budget constraint? b) How much of X and Y will the consumer consume to maximize his utility subject to his budget constraint. C) Now assume the price of X changes to $5 and price of Y and Income stays the same. At the new price, the consumer wants to buy 60 units of product X to maximize her utility given her budget How much X and Y will the consumer consume to maximize utility. S the before and after the change of the budget constraint and indifference gra on the same graph space. Show all necessary points. Label clearly. s. Draw d) Write out the expression of the utiity maximizing ruie here.?arrow_forward21. A consumer has a utility function defined over two goods X and Y. Let the quantity of Good X be x ≥ 0 and the quantity of Good Y be y ≥ 0. The utility function is given below: u(x, y) = xy + 2y. Assume that the consumer has income m and that prices are på and py. (a) Explain whether the preferences underlying this utility function satisfy completeness and transitivity. (b) Explain whether the preferences underlying this utility function satisfy monotonicity and convexity. (c) Find the consumer's Marshallian demands for Good X and Good Y at prices px > 0 and Py > 0. (d) Show that goods X and Y are normal goods and explain whether either good is a substitute for the other. (e) Assume that px 10, Py = 5 and m = 100. Suppose that px increases to px = 15, how much of the change in demand for Good X is via the substitution effect and how much is via the income effect? Note: You may assume an interior solution (i.e. x > 0 and y> 0). =arrow_forwardFrank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the price of D is $3, then the marginal utility of D is twice that of C. the marginal utility of D is the same as that of C. the marginal utility of C is twice that of D. the relationship between the marginal utility of C and D cannot be determined.arrow_forward
- Diminishing marginal rate of substitution for a good means: I. decreasing the quantity of a good that the consumer would give up for one more additional quantity of the other good II. increasing the quantity of a good that the consumer would give up for one more additional quantity of the other good III. no change for the quantity of a good that the consumer would give up for one more additional quantity of the other good IV. all answers are correctarrow_forwardMarissa has $30 to spend on beer and hamburgers. Beers are $3/beer and hamburgers are $5/hamburger. Which figure represents Marissa's budget constraint? Group of answer choices figure (a) figure (b) figure (c) figure (d)arrow_forwardIn the diagram on the right the consumer's original budget line is L₁, and the consumer buys the amount of good X at point A. Then the price of good X decreases dramatically so that the consumer's new budget line shifts to L₂. After the price decrease the consumer buys the amount of good X at point C. The substitution effect due to the price change is the movement from point A to point B The income effect due to the price change is the movement from point to point Based on the income effect, good X is good. Good Y B U Good X U₂ یاarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning