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 3AP
To determine
The indifference curve and total utility.
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Draw the following scenario:
Assume a piece of jewelry and 2 consecutive drops in its price. Also consider Alia’s demand to be relative elastic in the price range from ? 1to ? 2, and that she perceives
jewelry as a Giffen good in the price range from ? 2to ? 4. Draw her price-consumption
curve with well-behaved preferences. Clearly label your graph.
The graph may be something like this:
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
The table shows the marginal utility schedules for product X and product Y for a
hypothetical consumer. The price of product X is $6 and the price of product Y is
$2. The income of the consumer is $30.
MU x
MUy
Units of X
Units of Y
72
1
24
66
20
3
60
3
16
4
48
4
12
30
When the consumer purchases the utility-maximizing combination of product X and
product Y, total utility will be.
O76
O 356
96
156
306
86
2.
2.
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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