Marc has a budget of $16 a month to spend on root beer and movie tickets. The price of root beer is $2 a bottle, and the price of a movie ticket is $4. Draw points to show the combination of movie tickets and root beer Marc buys when: 1) he uses all his income to buy root beer. Label it 1. 2) he uses all his income to buy movie tickets. Label it 2. Draw Marc's budget line. Label it. ... What is the slope of Marc's budget line? The slope of Marc's budget line is. >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. What determines the value of the slope of Marc's budget line? The magnitude of the slope of the budget equals the

Marc has a budget of $16 a month to spend on root beer and movie tickets. The price of root beer is $2 a bottle, and the price of a movie ticket is $4. Draw points to show the combination of movie tickets and root beer Marc buys when: 1) he uses all his income to buy root beer. Label it 1. 2) he uses all his income to buy movie tickets. Label it 2. Draw Marc's budget line. Label it. ... What is the slope of Marc's budget line? The slope of Marc's budget line is. >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. What determines the value of the slope of Marc's budget line? The magnitude of the slope of the budget equals the

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 8P

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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.
Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Raymond consumes meatloaves and pineapples. He has decided that hismonthly budget will be $1500. Suppose that one meatloaf costs $375, while one pineapple costs $150. i. Draw a graph of Raymond’s budget line (meatloaf on the y axis). ii. Show how Raymond’s budget line changes if the price of pineapplesincreases to $370.
1. You have a budget of $125 per month that you can spend digital music or eating dinner. Each dinner costs $25 and each digital album costs $10. Use the chart below to answer the following questions. Albums No. Per Week 1 2 3 4 5 Total Utility 250 450 630 790 870 Dinners No. Per Total Week Utility 1 2 3 |4 5 300 550 750 900 1025 1. What is the utility maximizing bundle? 2. Explain how the total utility will be affected if prices and income double?
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
1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get a 50% discount on additional sandwiches. a b. Jack says he is not interested. In a different graph that includes his budget line before and after (again measure EOG on the Y axis and sandwich consumption on the X axis) and his preferences, show his sandwich consumption before and after. In your graph what indicates that he is NOT better off with this deal? Explain
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Name: Maximizing Utility The following table shows represents the utility received by Sharon for cookies and pretzels. Fill in the missing data. Total Marginal Utility Utility # of pretzels # of Marginal Utility Utility Total cookies --- --- 1 20 1 12 2 10 2 8 3 5 3 4 4 4 5 32 5 20 28 -10 Use the above completed table to answer the folloiwng questions. If your budget is $ 5.00 and both cookies and pretxels cost $1.00 each, how many cookies and pretzels will you buy to maximize your utility? а. What will your total utility be?
Can you help with finding the marginal utility and marginal per dollar? Part 1 Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items. Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. Quantity of Tickets Consumed Total Utility Marginal Utility Movie Ticket Price Marginal Utility Per Dollar for Movie Tickets 0 0 --- --- --- 200 150 $10.00 400 275 $10.00 600 375 $10.00 800 450 $10.00 1,000 500…
. Price for X is $1 and Y is $2. Budget is $9. Good X Good Y Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1 Suppose that the consumer’s income increased from $9 to $12. What would be the utility-maximizing combination of goods X and Y?
1. An individual's budget Suppose Darnell has a weekly budget of $32 to spend on ranch dressing and spinach. Ranch dressing is priced at $4 per bottle, and spinach is priced at $2 per container. If Darnell spends his entire $32 on ranch dressing, he can buy 16 containers of spinach. 8 bottles of ranch dressing. If he spends his entire $32 on spinach, he can buy Use the blue line (circle symbol) to plot Darnell's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of ranch dressing and spinach that are affordable for Darnell. Finally, place the black point (plus symbol) on the point on Darnell's budget constraint that corresponds to a scenario in which Darnell spends $16 on each good. Note: Dashed drop lines will automatically extend to both axes.
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