Consumption in order to increase her total utility

Assignment Help Business Economics
Reference no: EM13852872

Tom consumes positive quantities of both jam and juice. the price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 55. Without changing her total expenditure, how should she adjust her consumption in order to increase her total utility?

Reference no: EM13852872

Questions Cloud

Calculate his demand for each good : Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
How many rackets will she consume : Derek consumes only rackets and tennis balls. His utility function is U(x,y)=x^2y^8, where x is the number of rackets consumed and y is the number of tennis balls consumed. Derek's income is $320, and the prices of rackets and tennis balls are $4 and..
What is the cournot-nash equilibrium : The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce wid- gets. Each firm has a constant marginal and average cost of producing the good that equals 10. What is the Cournot-Nash equilibrium? You need to solve ..
Graph gary''s demand function for candy : a) Graph Gary's demand function for candy given that PS =5 and his income is 20. Thegraph should have demand on the vertical axis and PC on the horizontal axis.b) If PC =1, what utility does Gary achieve?c) Using the utility derived in part (b) and P..
Consumption in order to increase her total utility : Tom consumes positive quantities of both jam and juice. the price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 55. Without changing her total expenditur..
Budget line and highest attainable indifference curve : Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. (Plays and movies are perfect substitutes with 1 to 3 ratio.) Draw her indifference curves. If plays tickets cost..
What is the optimal two-part price : Suppose that VerizonWireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individuals' inverse demand for wireless services in the greater Boston area is estimated to be P = 100 - 33Q and t..
Creating a measurable marketing and advertising strategy : In your simulation this week, one item that you will be working on is advertising to include ad copy design, and media placement and ad frequency.
Majority voting to determine amount of public good : “If the assumptions of the median voter model hold, then using majority voting to determine the amount of a public good purchased by a city will lead to either an efficient level of the public good being provided or an under-provision of the public g..

Reviews

Write a Review

Business Economics Questions & Answers

  The income elasticity of demand for your firms product

The income elasticity of demand for your firm’s product is estimated to be 0.75. A recent report in The Wall Street Journal says that national income is expected to decline by 3 percent this year. What should you do with your stock of inventories?

  Contrast to the federal budget

In the United States we have a only few laws for the states to obey. Therefore, in contrast to the federal budget, the budgets of the individual states-------

  Honda accord owners are fiercely loyal to their auto choice

honda accord owners are fiercely loyal to their auto choice. while interviewed by representatives of honda number one

  Illustrate what money supply should the fed set in year

Illustrate what money supply should the Fed set in year 2009 if it wants to keep the price level stable.

  Describe a positive or negative situation arising

Describe a positive or negative situation arising from an organization structure within an internationalcompany. Explain why a good organization structure is important to companies.

  Level of total deposits the banking system can create

If the reserve ratio set by the Federal Reserve is 20% then what is the deposit multiplier? Your answer is-----. If the initial total reserves were 200 what level of total deposits the banking system can create? (Assume it is the simple banking syste..

  Whats the short run production function

Suppose the production function for a certain good is a simple Cobb-Douglas function without a technology component. What’s the short run production function? Given this SMC how much will this firm produce at a price of $40? What’s the total cost, to..

  Calculate deadweight loss created by imposition of tax

Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..

  Elucidate its consumption and government expenditures

The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.

  Computer programmer with utility function equal

Sergei is a computer programmer with a utility function equal to U=Y+120L-L . He contracts with Uber that allows him to set his own work hours; they pay him $50/hour. He has allocated himself a work-hour time budget of a maximum of 250 hours per mont..

  Equilibrium price and quantity

A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.

  Illustrate cost of good x to drive it to equilibrium

Find out QD and QS when cost of good X is $12.00. Is re a surplus or shortage. Illustrate what should happen to cost of Good X to drive it to Equilibrium.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd