Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 9, Problem 8SPA
a)
To determine
The change in consumption basket.
b)
To determine
The choice of preference of consumption basket.
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1. You have a budget of $125 per month that you can spend digital music or eating
dinner. Each dinner costs $25 and each digital album costs $10. Use the chart below
to answer the following questions.
Albums
No. Per
Week
1
2
3
4
5
Total
Utility
250
450
630
790
870
Dinners
No. Per Total
Week
Utility
1
2
3
|4
5
300
550
750
900
1025
1. What is the utility maximizing bundle?
2. Explain how the total utility will be affected if prices and income double?
A consumer who has spent all of her income on clothes and food and finds that her marginal-utility for clothes is 16 and marginal-utility for food is 20. If the price of clothes and food are both $4 . What should the consumer do for purchases to maximize total utility
A.
purchasing more clothes and less food
B.
purchasing more of both commodities
C.
purchasing less of both commodities
D.
purchasing more food and less clothes
The graph shows the budget line for a consumer who only
buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine?
24
20
16
4
2
4
6
8
10
12
Magazines (number per week)
dollar(s)
Cookies (number per week)
Chapter 9 Solutions
Macroeconomics
Ch. 9.1 - Prob. 1RQCh. 9.1 - Prob. 2RQCh. 9.1 - Prob. 3RQCh. 9.1 - Prob. 4RQCh. 9.1 - Prob. 5RQCh. 9.2 - Prob. 1RQCh. 9.2 - Prob. 2RQCh. 9.2 - Prob. 3RQCh. 9.2 - Prob. 4RQCh. 9.3 - Prob. 1RQ
Ch. 9.3 - Prob. 2RQCh. 9.3 - Prob. 3RQCh. 9.3 - Prob. 4RQCh. 9.3 - Prob. 5RQCh. 9 - Prob. 1SPACh. 9 - Prob. 2SPACh. 9 - Prob. 3SPACh. 9 - Prob. 4SPACh. 9 - Prob. 5SPACh. 9 - Prob. 6SPACh. 9 - Prob. 7SPACh. 9 - Prob. 8SPACh. 9 - Prob. 9SPACh. 9 - Prob. 10SPACh. 9 - Prob. 11SPACh. 9 - Prob. 12APACh. 9 - Prob. 13APACh. 9 - Prob. 14APACh. 9 - Prob. 15APACh. 9 - Prob. 16APACh. 9 - Prob. 17APACh. 9 - Prob. 18APACh. 9 - Prob. 19APACh. 9 - Prob. 20APACh. 9 - Prob. 21APACh. 9 - Prob. 22APACh. 9 - Prob. 23APACh. 9 - Prob. 24APACh. 9 - Prob. 25APACh. 9 - Prob. 26APACh. 9 - Prob. 27APACh. 9 - Prob. 28APACh. 9 - Prob. 29APACh. 9 - Prob. 30APA
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