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.A, Problem 2ADQ
Subpart (a):
To determine
The information about an indifference curve.
Subpart (b):
To determine
The information about an indifference curve.
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Students have asked these similar questions
Refer to the indifference curve/budget line diagram below in Figure 7. Given that a consumer initially faces
budget line (BL1) and ICI, and thus, by choosing consumption point c, is able to achieve the optimal utility level.
If the price of x (Px) decreases, then the substitution effect (SE) is the movement from _-.
effect (IE) is the movement from
and the income
y
a
IC2
d
IC:
BLI
Figure 7
O a. from b to a; and a to d.
O b. from a to b; and b to c.
O c. No correct answwers.
O d. from c to d; and d to a.
Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are
$3 and $4, respectively, and that the consumer's income is $25
Units of L
1
2
3
4
5
Multiple Choice
O
Total Utility Units of M
9
O
What level of total utility does the rational consumer realize in equilibrium?
51 utils
86 utils
162 utils
15
18
20
21
58 utils
1
2
3
4
5
Total Utility
16
28
36
40
42
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?
*use tables and/or graphs if possible, please original work
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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