Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 15, Problem 3RQ
To determine
The spending for the product.
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Students have asked these similar questions
Danièle has 40 hours a week she can use for work or
leisure. She earns 16 euros an hour and has no other
income. Her utility function is
U(c,I) = c'l
, where
is consumption in dollars and
is leisure in hours. How many hours a week will
Danièle work?
O 10
O None of the other answers is correct
O 15
O 30
O 20
An additional unit of Old Product X will bring Cindy an MU of 15 utils, an additional unit of New Product Y will bring Cindy an MU of 30 utils, and an additional unit of New Product Z will bring Cindy an MU of 40 utils. If a unit of Old Product X costs $10, a unit of New Product Y costs $30, and a unit of New Product Z costs $20, which product will Cindy prefer to spend her money on?
a. Old Product X.
b. New Product Y.
c. New Product Z.
d. More information is required.
The price of a gallon of gasoline in California was $0.99 in 1997, and it is currently $3.69. By what factor have the prices increased?
-3.73
O 72
O 27
3.73
Chapter 15 Solutions
Economics (Irwin Economics)
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- Caci, un he would spend a dollar buying a first cup of coffee? LO7.2 4. Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $18, $6, $4, and $24 and that Ricardo has an income of $106. LO7.2 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many dollars will Ricardo choose to save? c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. nuts, coffee, or both. How big would that buuget nave LU DC DCIUIUarrow_forwardDiminishing marginal utility means that O a. as one consumes more of a good, other things constant, the additional satisfaction obtained from each additional unit of the good tends to fall. O b. as one hires more labor, other things constant, the total amount of output produced begins to fall. O C. as one hires more units of labor, other things constant, the marginal product of labor begins to fall. O d. as one consumes more of a good, other things constant, the total satisfaction obtained from consuming the good tends to fall. e. as one consumes more of a good, other things constant, the extra satisfaction obtained from each extra good becomes negative.arrow_forwardAssume that Robyn wants to buy socks and once she finds out that the price per pair is $5. she decides to buy 4 pairs of socks. Which of the following is true? O a) The marginal benefit (or marginal utility) of the 5th pair is higher than the marginal cost of the Sth pair O b) The marginal benefit (or marginal utility) of the 4th pair must be equal to $20 O O The marginal benefit (or marginal utility) of the Sth pair must be lower than $5 O d) The marginal benefit (or marginal utility) of the first pair must be lower than 55arrow_forward
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- 0 2 O 4 6 08 D Scones 10 1 2 3 4 5 Total Utility 10 18 24 Refer to Table 6.3, which shows the total utility and marginal utility derived from the consumption of scones. The first column of the table represents the number of scones a consumer consumes in a day. The second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. The total utility derived from the consumption of one scone is units. 28 30 Marginal Utility 6 2arrow_forwardDemand: Thinking Like a Buyer End of Chapter Problem Uber Eats, a food delivery service, has recently expanded to your area. The accompanying table contains the number of deliveries per month that you demand at various delivery prices. a. Use this information to plot your individual demand curve. Drag each point on the graph to the point that corresponds with the information presented in the table. Price ($) 14 13 12 11 10 9 8 7 6 LO 5 4 3 2 Price Individual demand $10 $7 $5 $4 $2 $1 Deliveries (meals per month) 2 4 5 8 10 12arrow_forwardQ.3 (a) No of Units Consumed 1 2 4 6. Total Utility in Units/Utils 10 25 40 60 75 80 Marginal Utility in Units/Utils 15 20 15 (i) State and explain the law illustrated in the above table. (ii) Outline two assumptions underlying this law. lo 3.arrow_forward
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