D2 HelpAnswer the question on the basis of the following two scneauies, which snow the amounts of additionalsatisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.Units of J1234567MUJ56Multiple Choice483224201612Units of K123457If the consumer's money income were cut from $52 to $28, and the prices of Jarespectively, she would maximize her satisfaction by purchasing4 units of J and 1 unit of K.2 units of J and 3 units of K.1 unit of J and 3 units of K.MUK323 units of J and 3 units of K.28242012108Save & ExitK remain at $8 and $4,Submit

Marginal Utility is the additional satisfaction enjoyed by the consumer due to consumption of one…

Answer the question on the basis of the following two schedules, which snow the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J 1 2 3 4 5 6 7 MUj 56 48 32 24 20 16 12 Multiple Choice Units of K 1 2 WN 3 4 5 6 1 unit of J and 3 units of K 7 If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4, respectively, she would maximize her satisfaction by purchasing 4 units of J and 1 unit of K 2 units of J and 3 units of K. MUK 32 3 units of J and 3 units of K. 28 24 20 12 10 8 Submit

Answer the question on the basis of the following two schedules, which snow the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J 1 2 3 4 5 6 7 MUj 56 48 32 24 20 16 12 Multiple Choice Units of K 1 2 WN 3 4 5 6 1 unit of J and 3 units of K 7 If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4, respectively, she would maximize her satisfaction by purchasing 4 units of J and 1 unit of K 2 units of J and 3 units of K. MUK 32 3 units of J and 3 units of K. 28 24 20 12 10 8 Submit

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 8SQP

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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 roundâ€”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.
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
Is it possible for total utility to increase while marginal utility diminishes? Explain.
The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called closing the Washington Monument. When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the Washington Monument strategy is So misleading. Hint: If you are really trying to make the best of a budget cut, should you cut the items in your budget with tile highest marginal utility or line lowest marginal utility? Does the Washington Monument strategy cut the items with the highest marginal utility or line lowest marginal utility?
As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?