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- 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? Cookies (number per week) 24 20 a 16 8 4 O 2 4 6 8 10 12 Magazines (number per week) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.Tea 50 40 30 20 10 0 Tea 50 40 30 20 10 0 OC OA D Chart A 2 5 10 15 20 25 30 Scones Chart C 5 10 15 20 Tea 25 30 Scones 50 40 30- 20 10 0 Tea 50 40 30 20 10 Chart B 5 10 1 0 5 15 20 25 30 Scones Chart D Look at the figure Budget Lines for Tea and Scones. For months now. Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of a cup of tea falls to $0.50? 10 15 20 25 30 Scones 1 ptsYou are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 a. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? ______units of X and ______units of Y b. What total utility will you realize? ______utils c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? _____units of X and ______units of Y d. Using the two prices and quantities for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Price of X Quantity Demanded of X $ $
- D Question 18 Burgers 6543210 10 0 5 TTTTT o O 20 O 24 0 P 4 B C 8 Budget: $10 Burgers: $2 Bus Tickets: 50 cents D E 。. 12 Bus Tickets If the consumer spends all his money on bus tickets how many bus tickets can he afford to buy? 16 F 20 24Number of Units of Commodity 5 6 7 D. 116 8 25. Refer to the above table. What is the marginal utility of the fourth unit? A. 36 B. 44 C. 80 Total Utility 36 80 150 252 350 440 26. Refer to the above table. The addition of which unit has the greatest marginal utility? A. Fifth B. Sixth C. Seventh D. Eighth 27. Refer to the above table. At what consumption level for this product does diminishing marginal utility set im A. 4 units 8.5 units C. 6 units D. 7 units4. Kay lives in a city where housing costs $1 per square foot. They have a monthly budget of$1,000, of which they decide to allocate $500 to rent a 500 sqft. apartment and spend teother $500 on consumption. A generous relative offers Kay a deal on a 400 sqft. apartmentfor only $200 per month, which they accept. What is the equivalent variation of this transferfor Kay, in dollars per month? (Select one)(a) More than $300: Kay gets utility from both consumption and the new apartment.(b) $300: That is how much more Kay can consume with the new cost of rent.(c) $250: That is how much less Kay’s old bundle would have cost at the new prices.(d) Between $0 and $250: Kay would substitute away from her old bundle at the new prices.(e) $200: That is the additional cost of Kay’s new bundle at the old prices.(f) Between $0 and $200: Kay may prefer to substitute away from her new bundle at theold prices.(g) $100: That is the differential cost of the new apartment at the old prices.(h) $0: The new…
- What is consumer surplus? Consumer surplus is the OA. price; its marginal benefit B. price; its value of a good in excess of OC. marginal benefit; the price paid for it D. value; its marginal benefit Question 1 of 27 > summed over the quantity bought. Suppose that the price of a cashmere sweater is $100 and Jean's marginal benefit from a cashmere sweater is $300. If Jean buys 1 cashmere sweater, what is her consumer surplus? Jean's consumer surplus is $1. Explain with the help of a neat labelled diagram, what happens to equilibrium price and quantity in the following situations: a. A big increase in demand is followed by a smaller increase in supply. b. A decrease in demand is followed by an equal decrease in supply. 2. When the price of "X" changes from OMR 10 to OMR 15, the demand for "Y changes from 15525 kgs to 18725 kgs. Calculate cross elasticity of demand for these goods. What kind of products are “X" and "Y"? marks) (2 3. Assume that in the short run a firm is producing 200 units of output, has average total costs of OMR350, and average variable costs of OMR200. Calculate Fixed costs. Define fixed costs. (2 marks)Value as Marginal Benefit of Successive Items of Five Alternative Goods Produced and Consumed Every successive item in each category is produced at constant, identical unit-cost Quantity Lasagna Vaccinations. Math Courses: Energy Drinks 1 $10 9 2 3 4 5 6 8 7 6 5 I $9 8 Cost-Benefit for Right Goods 6 5 4 $8 7 Arthur would gain by forfeiting one unit of in order to fund one more unit of 6 5 4 3 $7 6 5 4 3 2 Trips to Brussels $6 5 4 3 2 1 8. The marginal benefit magnitudes above constitute the value or maximum-willing-to-pay for each successive unit of each kind of good. It reflects the valuations of representative citizen, Arthur. Arthur currently procures and enjoys one lasagna, one math course, three energy drinks, and two trips to Brussels, as underlined and bolded. lle
- Who determines how much utility an individual will receive from consuming a good?Would you expect total utility to rise or fall with additional consumption of a good? Why?Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round—trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
