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- Would you expect total utility to rise or fall with additional consumption of a good? Why?Explain all the reasons why a decrease in a products price would lead to an increase in purchases.Income effects depend on the income elasticity ofdemand for each good that you buy. If one of the goodsyou buy has a negative income elasticity, that is, it is aninferior good, what must be true of the income elasticityof the other good you buy?
- A consumer's weekly income is $300, and the consumer buys 5 bars of chocolate per week. When weekly income increases to $330, the consumer buys 6 bars per week. The income elasticity of demand for chocolate 17 by this consumer is about Multiple Choice еВook 0. 0.52 1.91. Mc Graw Hill P Type here to search 10:31 AM 84°F Sunny 10/2/2021 2.If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unitMaya divides her income between coffee andcroissanls (both of which arc normal goods). An earlyfrost in Brazil causes a large increase in the price ofcoffee in the U nitcd Stites.a. Show the eflcct ol the frost on Maya's budgetconstraint.b. Shm" the effect ol the frost on Maya's optinu,loonsumption bwl<ile assunling that the substitutioneflcct outweiglls the income effect for croiss:mls.c. Show the eflcct of the frost on Maya's optimalconsumption bw,dle assuming that the incomeeffect outweighs the substitution effect forcroissants
- Adwoa purchases only pasta and salad with her income of ghc 160 a month. Assume the price of pasta is ghc 6 and the price of salad is ghc 5 each. Answer the following questions about Adwoa’s budget.i. Derive Adwoa’s budget equation and draw the line of this equationii. Using the budget line drawn in (i) show the effect of a 100 percent increase in the price pasta hold the price of salad and income constant.iii. Using the budget line drawn in (i) show the effect of a 100 percent increase in her income hold the price of pasta and salad constant.iv. What is the slope of Adwoa’s budget line? What does this mean to Adwoa?Cola Income S60 GO Prota 51 Pizza Income $60 Prza $10 5. Refer to Scenario#1. If the price of cola doubles to $3 while thc income and the price of pizza are constant, then the a. budget constraint intersects the vertical axis at 20 colas C. slope of the budget constraint rises to -2 Hint: Wth b. budget constraint intersects the vertical axis at 30 colas d. budget constraint shifts inward in a parallel fashionWhat price ÅSsuming do you line and budget that understand by line? Consumer has income of $180, which monthly he Spends Good' X on two commodities and Grood Y. The price l07 Good $13 and price of the is $24. What would ' be Combinations of Crood X is Various Good Y this combinations line regard? and in and write draw various budget according ly?
- Andy drinks hot chocolate every week throughout the winter. Draw a curve that illustrates Andy's total utility from hot chocolate. Start your curve at the origin and label it. Andy's total utility from hot chocolate depends on A. his income but not the price of hot chocolate B. the quantity of hot chocolate he consumes C. the price of hot chocolate but not his income D. both the price of hot chocolate and his income COLO 100 80- 60- 40 20- Units of utility 8 Quantity (mugs of hot chocolate per week) >>> Draw only the objects specified in the question. F2 f2 12 12given the following informationon quantity consumed of cheese and total utility for Carl answer the following can you please help to check my answer. thanks qty (in oz) tu mu 1 50 0 2 70 20 3 85 15 4 95 10 5 90 5 a) what is the marginal for each addtion ounce of cheese - see above b) at a price of $16 an ounce, how many ounces of caviar should carl purchase to optimize his satisfaction? my answer 2 c) what is his conusmer surplus at this optimal level of consumption? (can you help me solve this I see too many diffrence equation for this very confuse)stion 51 The following marginal utility data is for products X and Y. Assume that the prices of x and Y are 54 and $2 respectively and that the consumer's income is $18 wet ered d out of Units Marginal Units Marginal utility, Y of X utility, X of Y ove fiag 20 16 2 16 2. 14 3 12 3 12 4 8. 4 10 5. 8. 6 4. 6 Which of the following shows the price and quantity demanded of X? (A) (B) (C) (D) Qd P Qd Qd Qd P. $4 $4 2 $4 3 $4 3. 2 5. 2. 4 2 9. Select one: O a. column (B) O b. column (A) O c. column (C) O d. column (D)