Refer to the above table. Suppose that the consumer\'s income increased from $20
ID: 1179461 • Letter: R
Question
Refer to the above table. Suppose that the consumer's income increased from $20 to $30. What would be the utility-maximizing combination of products X and Y? 3X and 3Y 4X and 4Y 5X and 5Y 5X and 5Y Refer to the above table. Based on taste and preference alone, which good does the consumer prefer? The consumer prefers X over Y The consumer prefers Y over X The consumer equally likes X and Y One cannot tell from the given data Sharon Jones purchases two products with a given fixed budget, orange juice and soda. Her marginal utility from orange juice is 60 and her marginal utility from soda is 30. The price of a bottle of orange juice is $2.00 and the price of soda is $1.00. These data suggest that: Sharon is maximizing her utility from the given fixed budget Sharon should buy more orange juice and less soda Sharon should buy more soda and less orange juice Assume that A and B are both priced at $ 1 per unit and that Mary has $ 10 to spend on A and B. She buys 6 units of A and 4 units of B. The marginal utility of A is 12 and the marginal utility of B is 8. This indicates that: Mary is in equilibrium Given another dollar, Mary should buy an additional unit of B In order to maximize utility, Mary should buy more of B and less of A In order to maximize utility, Mary should buy more of A and less of B the table shows the marginal-utility schedules for goods A and B for a hypothetiacl consumer. the price of good A $1 and the price of good B $2. The income of the consumer is $8.Explanation / Answer
Equality between all marginal utility-price ratios is the rule of consumer equilibrium which is satisfied with utility maximization.
16)
A) Sharon is maximizing her utility from the given fixed budget
60/2=30/1
30=30
17)12/1 >8/1
if more A is bought marginal utility of A decreases making it to reach equilibrium
D) In order to maximize utility, Mary should buy more of A and less of B