Please answer it carefully!!!!!!!!!!!! Please help me with it and
Question # 00087307
Posted By:
Updated on: 08/01/2015 08:48 AM Due on: 08/31/2015
Use the table below for the following question. Suppose you have a budget of $6 and
that brownies and Twizzlers cost $1 each. What is the consumer optimum?
Number
Total
Marginal
Number
Total
Marginal
of
Utility of
Utility of
of
Utility of
Utility of
Brownies
Brownies
Brownies
Twizzlers
Twizzlers
Twizzlers
0
0
-
0
0
-
1
10
10
1
6
8
2
19
9
2
13
7
3
26
7
3
19
6
4
30
4
4
23
4
5
30
0
5
25
2
6
29
-1
6
25
0
A. 4 brownies and 2 Twizzlers
B. 8
C. 3 brownies and 3 Twizzlers
D. 6 brownies
E. any combination of 6 because they're both $1
2.
Use the table below for the following question. What is the consumer equilibrium for
a $6 budget if the price of brownies rises to $1.50 and the price of Twizzlers remains
at $1.00?
Number
Total
Marginal
Number
Total
Marginal
of
Utility of
Utility of
of
Utility of
Utility of
Brownies
Brownies
Brownies
Twizzlers
Twizzlers
Twizzlers
0
0
-
0
0
-
1
10
10
1
6
8
2
19
9
2
13
7
3
26
7
3
19
6
4
30
4
4
23
4
5
30
0
5
25
2
6
29
-1
6
25
0
A. 7
B. 4 brownies
C. 3 brownies and 3 Twizzlers
D. The consumer will buy all Twizzlers because theyre cheaper.
E. 3 Twizzlers and 2 brownies
100.0 Points
3.
At Nice Price for the Ice, an ice cream parlor, customers routinely buy a scoop of ice
cream for $3. If consumers purchase one scoop of ice cream at $3, then why don't
they keep buying more and more scoops for $3 until the store sells out?
A. At some point, customers do not value an additional scoop at $3, so they will not pay $3 for a scoop
after they reach that point.
B. People do not want to consume all the scoops of ice cream because their total utility is higher the less
they eat.
C. People would not want more than one scoop of ice cream because then they would have less money to
spend on other goods.
100.0 Points
4.
Suppose you plan on eating 50 potato chips. As you start consuming potato chips, your
marginal utility is very high, but it begins to fall slowly until youve eaten 10 chips. After
you have eaten 10 chips, your marginal utility decreases even faster with each additional
chip. Marginal utility continues to decline until youve eaten 49 chips. The fiftieth chip
does not give you any additional utility. After 50 chips, your mouth gets so salty that its
unpleasant to eat any more, so marginal utility is actually negative for those chips. How
many chips should you eat in order to maximize your total utility?
A. 10
B. 1
C. 49
100.0 Points
5.
As you start consuming potato chips, your marginal utility is very high, but it begins
to fall slowly until youve eaten 10 chips. After you have eated 10 chips, marginal
utility decreases even faster with each additional chip. Marginal utility continues to
decline until youve eaten 49 chips. The fiftieth chip does not give you any additional
utility. After 50 chips, your mouth gets so salty that its unpleasant to eat any more,
so marginal utility is actually negative for those chips. How many chips should you
eat in order to maximize your marginal utility?
A. 10
B. 49
C. 1
D. 50
6.
At current levels of consumption, Alice is spending her entire budget. If Alice gets 3
utils of satisfaction per dollar spent on ice cream and 2 utils per dollar spent on
shampoo, then how should she adjust her consumption to get closer to the consumer
optimum?
A. She should buy more shampoo and less ice cream.
B. She is already at the consumer optimum, so no adjustment is necessary.
C. She should buy more of both goods.
D. She should buy more ice cream and less shampoo.
7.
Suppose you are at a restaurant and your favorite dish costs $20. You can get your
next-favorite dish for $17. If your next-favorite dish gives you 100 utils, how many
additional utils do you need from your favorite dish to spend the extra $3?
A. 117.65
B. 15
C. 17.65
D. 85
8.
The diamondwater paradox is the observation that water is essential to life and
inexpensive, while diamonds are not essential and are highly priced. Which of the
other pairs of goods exhibit a pricing structure similar to water and diamonds?
A. paper & textbooks
B. rice & truffles (very expensive mushrooms)
C. economy & luxury cars
D. paper clips & gasoline
9.
Rice is a cheap staple food eaten several times a day by many people all over the
world. In Trufflelandia, residents also eat expensive mushrooms known as truffles
once every year as a birthday celebration. Rice keeps the people alive and truffles
are not necessary for sustaining their lives. Why is rice so cheap and truffles so
expensive?
A. Truffles are more nutritious, and healthy food is always more expensive than unhealthy food.
B. Rice is easy to cook, so people buy a lot of it. If people are going to buy so much, then it has to be
cheap.
C. People eat so much rice that an additional serving of rice has little marginal value, but the marginal
value of another serving of truffles is very high.
D. Truffles taste better, so they are worth more money.
that brownies and Twizzlers cost $1 each. What is the consumer optimum?
Number
Total
Marginal
Number
Total
Marginal
of
Utility of
Utility of
of
Utility of
Utility of
Brownies
Brownies
Brownies
Twizzlers
Twizzlers
Twizzlers
0
0
-
0
0
-
1
10
10
1
6
8
2
19
9
2
13
7
3
26
7
3
19
6
4
30
4
4
23
4
5
30
0
5
25
2
6
29
-1
6
25
0
A. 4 brownies and 2 Twizzlers
B. 8
C. 3 brownies and 3 Twizzlers
D. 6 brownies
E. any combination of 6 because they're both $1
2.
Use the table below for the following question. What is the consumer equilibrium for
a $6 budget if the price of brownies rises to $1.50 and the price of Twizzlers remains
at $1.00?
Number
Total
Marginal
Number
Total
Marginal
of
Utility of
Utility of
of
Utility of
Utility of
Brownies
Brownies
Brownies
Twizzlers
Twizzlers
Twizzlers
0
0
-
0
0
-
1
10
10
1
6
8
2
19
9
2
13
7
3
26
7
3
19
6
4
30
4
4
23
4
5
30
0
5
25
2
6
29
-1
6
25
0
A. 7
B. 4 brownies
C. 3 brownies and 3 Twizzlers
D. The consumer will buy all Twizzlers because theyre cheaper.
E. 3 Twizzlers and 2 brownies
100.0 Points
3.
At Nice Price for the Ice, an ice cream parlor, customers routinely buy a scoop of ice
cream for $3. If consumers purchase one scoop of ice cream at $3, then why don't
they keep buying more and more scoops for $3 until the store sells out?
A. At some point, customers do not value an additional scoop at $3, so they will not pay $3 for a scoop
after they reach that point.
B. People do not want to consume all the scoops of ice cream because their total utility is higher the less
they eat.
C. People would not want more than one scoop of ice cream because then they would have less money to
spend on other goods.
100.0 Points
4.
Suppose you plan on eating 50 potato chips. As you start consuming potato chips, your
marginal utility is very high, but it begins to fall slowly until youve eaten 10 chips. After
you have eaten 10 chips, your marginal utility decreases even faster with each additional
chip. Marginal utility continues to decline until youve eaten 49 chips. The fiftieth chip
does not give you any additional utility. After 50 chips, your mouth gets so salty that its
unpleasant to eat any more, so marginal utility is actually negative for those chips. How
many chips should you eat in order to maximize your total utility?
A. 10
B. 1
C. 49
100.0 Points
5.
As you start consuming potato chips, your marginal utility is very high, but it begins
to fall slowly until youve eaten 10 chips. After you have eated 10 chips, marginal
utility decreases even faster with each additional chip. Marginal utility continues to
decline until youve eaten 49 chips. The fiftieth chip does not give you any additional
utility. After 50 chips, your mouth gets so salty that its unpleasant to eat any more,
so marginal utility is actually negative for those chips. How many chips should you
eat in order to maximize your marginal utility?
A. 10
B. 49
C. 1
D. 50
6.
At current levels of consumption, Alice is spending her entire budget. If Alice gets 3
utils of satisfaction per dollar spent on ice cream and 2 utils per dollar spent on
shampoo, then how should she adjust her consumption to get closer to the consumer
optimum?
A. She should buy more shampoo and less ice cream.
B. She is already at the consumer optimum, so no adjustment is necessary.
C. She should buy more of both goods.
D. She should buy more ice cream and less shampoo.
7.
Suppose you are at a restaurant and your favorite dish costs $20. You can get your
next-favorite dish for $17. If your next-favorite dish gives you 100 utils, how many
additional utils do you need from your favorite dish to spend the extra $3?
A. 117.65
B. 15
C. 17.65
D. 85
8.
The diamondwater paradox is the observation that water is essential to life and
inexpensive, while diamonds are not essential and are highly priced. Which of the
other pairs of goods exhibit a pricing structure similar to water and diamonds?
A. paper & textbooks
B. rice & truffles (very expensive mushrooms)
C. economy & luxury cars
D. paper clips & gasoline
9.
Rice is a cheap staple food eaten several times a day by many people all over the
world. In Trufflelandia, residents also eat expensive mushrooms known as truffles
once every year as a birthday celebration. Rice keeps the people alive and truffles
are not necessary for sustaining their lives. Why is rice so cheap and truffles so
expensive?
A. Truffles are more nutritious, and healthy food is always more expensive than unhealthy food.
B. Rice is easy to cook, so people buy a lot of it. If people are going to buy so much, then it has to be
cheap.
C. People eat so much rice that an additional serving of rice has little marginal value, but the marginal
value of another serving of truffles is very high.
D. Truffles taste better, so they are worth more money.
-
Rating:
/5
Solution: Please answer it carefully!!!!!!!!!!!! Please help me with it and