Give an example of normal goods that you think will become an inferior good when one day you earn a high income. Show your example using the Engel curve and explain.

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: What is the difference between good x as a function of price and income and good x as a function of…

A: Factors affecting demand are demand determinants. Price (P) , income(Y) , utility (U), taste and…

Q: Shannon consumes dresses and lemonade. The price of a dresses is $10 and the price of a lemonade is…

A: When talking about consumer behavior, an individual will be at equilibrium when: MUx/MUy=Px/Py

Q: If Cheerios and Milk are complements, consumers consume either one of these goods or the other.…

A: In economics, complement goods are those which are used jointly and can not be used separately. For…

Q: Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and…

A: 9. Substitution effect:   The substitution effect is the change in the price of goods and services…

Q: Suppose consumer consume two goods. Can both goods be inferior? Can one of the goods be inferior?…

A:

Q: When Sam has an income of $1,000, he consumes 30 units of good A and 50 units of good B. After Samâs…

A: An individual usually consumes according to one's budget constraint. Here, the person has income of…

Q: Mr. Robinson makes $200 a week and spends his entire income on running shoes and basketball shorts.…

A: Income = 200 per week Cost of Running Shoes = 20 Cost of Basketball Shorts = 20

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: Would you expect marginal utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the change in the total utility when a person consumes an additional unit of a…

Q: James Bond consumes two goods: vodka (x) and martini (y). His preferences are described by the…

A: The utility is the satisfaction derived by a consumer after the consumption of goods. Marginal…

Q: t is known that the indifference curve is convex.

A: GIVEN   It is known that the indifference curve is convex. What does this tell you about the…

Q: Give an example of inferior good and an example of normal good that you have encountered and how has…

A: Normal goods and inferior goods are characterized based on how a good's demand responds to a change…

Q: If income consumption curve is positively sloped, one good is inferior and the other good is normal…

A: Income consumption curve is the locus of different combinations of two goods that shows consumption…

Q: What would the Engel curve look like for each of the following three types of goods? Necessary,…

A: Engel curve graphically represents the relationship between the demand for a good and the consumer's…

Q: Use the Law of Diminishing Marginal Utility to discuss why Market Demand has to have a downward…

A: Utility is the satisfaction  derive by consuming goods and services. And due to law of diminishing…

Q: Marty purchases two goods, food and clothing. He has a diminishing marginal rate of substitution of…

A: Normal goods refer to those goods whose demand increases with the increase in the income of the…

Q: a) Jim buys gingerbread and candy, both of which are normal goods. When the price of gingerbread…

A: Income effect refers to the change in the quantity of good due to change int he price of that good,…

Q: The law of diminishing marginal utility says that...   A. as a person consumes more and more of a…

A: The marginal utility is the satisfaction derived from the consumption of an additional unit. The…

Q: a. Draw a budget line and then draw an indifference curve to illustrate the utility- maximizing…

A: Budget line: It is the graphical presentation of all the possible combinations of two goods can be…

Q: If the consumer is consuming exactly two goods, and she is always spending all of her money, can…

A: We will use microeconomic concepts such as monotonicity, substitution effects, normal goods and…

Q: TU of Good Y (utils) Units of TU of Good Units of Good X X (utils) Good Y 1 20 19 35 32 3 48 3 40 4…

A: According to the question, given that the table of the utility experienced by good X and Y. in two…

Q: Imran consumes two goods, X1 and X2. his utility function takes the form: u(X1, X2)=…

A: Utility function is given as: U(X1,X2) = 4X13+3X25Px1=2Px2=4

Q: Yakov consumes only cheese and crackers. Cheese and crackers    both be inferior goods for…

A: According to inferior goods, as person’s income rises, the demand for inferior goods decreases.…

Q: When the price of good 1 decreases, the following is true (select all that applies): a) If good 1 is…

A: Goods refers to the products that meet human desires and give usefulness, such as a gratifying…

Q: John consumes 20 units of food and 24 units of clothing. If food is an inferior good, will John be…

A: Inferior good is the one whose demand declines with increase in income.

Q: At last time you have answered my question ,but I still have some problems want to ask you and there…

A: To understand the concepts of the Indifference Curve and Budget Line, let us first understand the…

Q: Give 5 examples each of inferior goods and normal goods

A: Goods can be categorised in the basis of income . These goods demand are affected by the income…

Q: Using the following utility schedule, derive a demand curve for pizza. Assume income is $10, the…

A: 1. When the price f pizza is $1, then the maximum utility combination occurs at 3 units of beer and…

Q: ive an example of inferior good and an example of normal good that you have encountered and how has…

A: Inferior goods are those goods of which the demand for products decreases and income level…

Q: James Bond consumes two goods: vodka (x) and martini (y). His preferences are described by the…

A: Given: U(x,y) = (1x+9)y To find: Marginal rate of substitution in the point (2;2)

Q: Explain how an increase in a person’s income can lead to lower consumption of         an…

A: The inferior commodities are those commodities whose demand rises as the income of the people fall.

Q: ketch a person’s indifference map and budget line for two goods, X on the horizontal axis and Y on…

A: Initially, the optimal bundle is (X*,Y*).The optimal consumption point is E1. (a) A rise in the…

Q: The price of meatballs increases, and as a result, the demand curve for salad shifts to the right.…

A: Substitute goods: Those goods are said to be substitute goods when they are used for the same…

Q: Draw a budget line with good X on the x-axis and Good Y on the Y axis. Graphically illustrate the…

A: Price effect is basically a term that is used to describe the change in the demand preference of a…

Q: The following table shows represent the utility received by Sharon for cookies and pretzels. Fill in…

A: Utility refers to the amount of satisfaction that a consumer receives from the consumption of goods…

Q: Suppose we are able to model the total utility function for the consumption of two goods, good x and…

A: Utility is maximized when slope of indifference curve given by ratio of marginal utilities and slope…

Q: Suppose you have an income of $24 and the only two goods   you consume are apples (x1) and peaches…

A: Suppose We have an income of $24 and the only two goods that we consume are apples (x1) and peaches…

Q: You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down,…

A: The curve that depicts various quantities of goods being demanded by individuals at different price…

Q: Lorena uses her income to consume two goods. Originally, she was consuming at point (a), but then…

A: Lorena uses her income to consume two goods.

Q: A consumer consumption bundle contains good X and Y. Suppose the price of good X goes up and a…

A: Introduction: Consumption is the usage of products and services by households in economics.…

Q: Answer the attached question

A: Substitutes goods are used in place of each other while complement goods are used together.

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

A:

Q: A consumer purchases two goods, food and clothing. The utility function is U(x, y) = √xy, where x…

A: Any individual maximizes his/her consumption given the budget constraint by equation the Marginal…

Q: Suppose Natasha consumes two goods: good 1 and good 2. Last year, the price of good 1 was $2.00 and…

A: Laspeyres cost of living index  = ∑(p1q0)/∑(p0q0) x 100 Where p1 is current year price p0 is base…