Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 7.1, Problem 2QQ
To determine
Marginal utility .
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Students have asked these similar questions
6. Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U= 2X2Y.
What quantities of X and Y does he buy each week in equilibrium?.
6. A consumer has an expenditure function given by E = Ū(P+). When the consumer
has an income of 100, it can reach a maximum utility of 20. The price of x increases
by 3 and the consumer's income increases by 25. Are they better off or worse off than
before the changes? Explain how you know.
Full solution please
Q31
The law of diminishing marginal utility implies that...
a.
Total utility is constant as more units are consumed.
b.
The first unit of a good consumed contributes the most to the consumer's satisfaction.
c.
The last unit of a good consumed contributes the most to the consumer's satisfaction.
d.
The marginal utility of a good diminishes as the consumer earns more income.
e.
Total utility is negative.
Chapter 7 Solutions
Microeconomics
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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- 6. A consumer has an expenditure function given by E = Ū(P +P). When the consumer has an income of 100, it can reach a maximum utility of 20. The price of x increases by 3 and the consumer's income increases by 25. Are they better off or worse off than before the changes? Explain how you know.arrow_forward27. If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is reduce to zero while Total utility remains the same, what does it mean? a. at 56 utils of MU equals zero, utility begins to gain momentum b. at 56 utils of MU equals zero, utility begins to diminish c. at 56 utils of MU equals zero. utility begins to increase d. at 56 utils of MU equals zero, utility begins to upswingarrow_forwardFigure#5 Quantity of M&M's (0,10) 10 2. 41 Quantily o Skelesarrow_forward
- 3. The law of diminishing marginal utility means: The marginal utility of consuming successive units of a good will decline as the amount consumed increases. The marginal utility of consuming successive units of a good will stay the same as the amount consumed increases. None of the options. The marginal utility of consuming successive units of a good will increase as the amount consumed increases.arrow_forwardQ) Marginal utility measures the Select one:a. additional cost of an additional unit of consumption.b. additional utility from an additional unit of consumption.c. total utility from consumption.d. average utility from an additional unit of consumption.arrow_forwardAccording to the law of diminishing marginal utility, what happens as a consumer consumes more units of a good? A. Total utility increases at a decreasing rate.B. Marginal utility increases at a decreasing rate.C. Total utility decreases at an increasing rate.D. Marginal utility decreases at an increasing rate.arrow_forward
- 8. The principle of diminishing marginal utility means that when Sarah eats pizza, her satisfaction from the second slice of pizza is probably: * Less than that from the first. Greater than that from the first. Equal to that from the first. Not comparable to that from the first.arrow_forward2. The following table reflects the utility one receives from consuming a given product. Units Consumed Total Utility (TU) Marginal Utility (MU) 0 150 0 1 2 3 4 5 6 370 450 150 120 50 520 a. Complete the table solving for the missing total utility or marginal utility values in each row. b. Total utility increases throughout the table. At what rate does total utility increase? In other words, is it rising at an increasing rate, a decreasing rate, or a constant rate? Explain.arrow_forwardTotal utility Declines with increased consumption of a commodity. 5 Increases initially and achieves a maximum and then decreases with increased consumption of a commodity. c. Decreases initially, then increases and achieves a maximum and then decreases wjth increased consumption of a commodity. d. Continuously increases with increased consumption of a commodity.arrow_forward
- Q43 Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie... a. Should buy more cheese and less bread to maximise her utility. b. Should buy more bread and more cheese in order to maximise her utility. c. Spends too much money on bread and cheese. d. Should buy more bread and less cheese in order to maximise her utility. e. Is buying currently the utility-maximising amount of bread and cheese.arrow_forward5. The price of good x increases from 4 to 6. A consumer with an income of 120 buys 15 units of good x before the change and 10 units after. If the same consumer kept their utility constant and minimized expenditure, they would buy 8 units of x after the price change. What are the total effect, substitution effect, and income effect?arrow_forward3. Utility maximization under constraint, substitution and income effect, CV and EV (20 points) Josh gets utility (satisfaction) from two goods, A and B, according to the utility function U(A, B) = 5A/4B³/4. While Josh would like to consume as much as possible he is limited by his income. a. Maximize Josh's utility subject to the budget constraint using the Lagrangean method. b. Suppose Pa increase. Show graphically the income, substitution effect and total effect and explain. c. Suppose Pa increase. Show the graph for CV and EV and explain.arrow_forward
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