Mr. Chang uses his income to purchase burritos and toothpaste. The price of a burrito , and the price of is $6. Based on given Figure, Mr. Chang's income is toothpaste is. Burritos Toothpaste 90
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- 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.Ari intends to purchase a new car and has narrowed it down to a Dodge Ram truck or a Toyota Camry. A Dodge Ram truck costs $55000 while a Toyota Camry costs $20000. The utility that Ari will get from Dodge Ram truck is 12500 while Toyota Camry will generate a utility of 2500. Note: A purchase generating utility tells us the marginal utility of the good. What is the Marginal Utility per Dollar for Dodge Ram truck? What is the Marginal Utility per Dollar for Toyota Camry? Will Ari be better off buying a Dodge Ram truck or a Toyota Camry? ODodge Ram truck OToyota Camry ARamona is an asparagus farmer and the world asparagus market is perfectly competitive. The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle. The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week. Ramona's average variable cost and marginal cost fall to S20 a bundle. Ramona is A. not maximizing profit because she has cut her asparagus production O B. not maximizing profit because she is incurring an economic loss C. maximizing profit and she is incurring an economic loss O D. maximizing profit and she is making an economic profit E. not maximizing profit because marginal revenue does not equal marginal cost
- Your gym offers two classes at the same time:weightlifting and yoga. Both classes are includedin your membership and have space available.Your friend tells you he wants to work on hisstrength and take the weightlifting class, but youalways see him in yoga class. Which class giveshim more utility? How do you know this?The table shows Jerry's total utility from lottery tickets and candy bars. The price of a lottery ticket is $2, the price of a candy bar is $4, and Jerry has $12 a week to spend. Calculate Jerry's marginal utility from the fourth lottery ticket and marginal utility per dollar when he buys 4 lottery tickets. Calculate Jerry's marginal utility from the second candy bar and marginal utility per dollar when he buys 2 candy bars >>> Answer to 1 decimal place. ………… Jerry's marginal utility from the fourth lottery ticket is units. The marginal utility per dollar from lottery tickets when Jerry buys 4 lottery tickets is units per dollar. Jerry's marginal utility from the second candy bar is units. The marginal utility per dollar from candy bars when Jerry buys 2 candy bars is units per dollar. C Lottery tickets Total utility 0 14 24 32 38 Quantity per week 0 1 2 3 4 Quantity per week ܘ ܝ ܚ ܚ ܂ 2 3 Candy bars 4 Total utility 0 100 120 134 144Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVDcosts $600. Draw Jamani’s budget line. Putting games on the Y axis. ii. Suppose his income increases to $9000 per week, illustrate what happens to her budget line.iii. Suppose the price of games increase to $600, while his income and the price of DVDs is unchanged from part (i).
- Question 16 The following graph illustrates Tom's preferences for pizza slices and tacos in a given week: Figure 3-1 Quantity of Pizza Slices 20 10 18 17 16- 10 12 14 16 18 20 Quantity ofTacos Refer to Figure 3-1. Assume that Tom has an income of $100 per week, the price of a slice of pizza is $5, and the price of a taco is also $5. If Tom optimizes his purchases, he will choose to purchase which bundle of pizza slices and tacos? (Hint, consider which budget constraint Tom is on.) O A OB OC O O 111111000 14 IGN=Fill in the blanks in the table below Quantity of Total Hamburgers Utility Marginal Utility per Week Hamburgers Hamburgers 1 40 60 76 2 3 4 5 6 91 NSS 40 16 10 Quantity of Movies per Week 2 3 4 5 6 Total Utility Movies OC. 25 400 700 850 950 1,025 Marginal Utility Movies 400 300 O 100 50 25 Assume the price of a hamburger is $2 and the price of a movie is $5, and the consumer's income is $29 If the consumer is in equilibrium, what is the marginal utildy per last dollar spent on movies and hamburgers? OA. 10 OB. 20 OD. 50The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop No of Coffee & Pastries Total utility from Coffee Total utility from Pastries 1 1.50 10 2 2.70 13 3 3.60 15 4 3.60 16 5 2 16.5 Calculate Jerry’s marginal utility from coffee at each number of cups per 2 hours. Does Jerry’s marginal utility from Coffee obey the principle of diminishing marginal utility? Calculate Jerry’s marginal utility from Pastries at each number of hours per 2 hours. Does Jerry’s marginal utility from Pastries obey the principle of diminishing marginal utility? Which does Ahmed enjoy more: his 4th cup of Coffee or his 4th piece of pastries?
- The table shows Rita's total utility from burritos and hot dogs. When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog falls from $4 to $2, how many burritos and hot dogs does Rita buy? What are two points on Rita's demand curve for burritos? When the price of a burrito is $4, Rita has $28 to spend, and the price of a hot dog is $4, Rita buys burritos and hot dogs. Everything else remaining the same, if the price of a burrito falls from $4 to $2, how many burritos and hot dogs does Rita buy? burritos and hot dogs. Rita buys So two points on Rita's demand curve for burritos are $2.00 each. burritos at $4.00 each and burritos at (...)Max enjoys windsurfing and snorkeling. Max has $35 a day to spend, and he can spend as much time as he likes on his leisure pursuits. The price of renting equipment for windsurfing is $10 an hour and for snorkeling is $5 an hour. The table shows the total utility Max gets from each activity. Total Total Hours utility from utility from per day windsurfing snorkeling 1 120 40 2 220 76 3 300 106 4 360 128 5 396 140 6 412 150 7 422 158 Calculate Max’s marginal utility from windsurfing at each number of hours per day. Does Max’s marginal utility from windsurfing obey the principle of diminishing marginal utility? How many hours does…Soccer Games $40 Total Marginal Baseball Games $20 Total Marginal Quantity MU/P Quantity MU/P Utility Utility Utility Utility | 1 240 1 330 380 2 510 480 630 4 560 4 690 540 720 The table details the total utility thatJ.J. gets from going to see soccer and baseball games during a month. J.J. had $200 to spend. Calculate the marginal utility and the marginal utility per dollar spent for both soccer and baseball games, given that the price is $40 and $20 respectively. Based on your calculations: how many soccer games would he attend? how many baseball games would he attend? A> 1 22
