Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. A consumer uses all of their available income to buy food and gasoline. thier indifference curve and budget constraint are shown in the diagram

image text in transcribed

image text in transcribed
5. A consumer uses all of their available income to buy food and gasoline. thier indifference curve and budget constraint are shown in the diagram below. True or false? At point A, the marginal utility per dollar spent on food is greater than the marginal utility per dollar spent on gasoline? gasoline A IC food (a) True (b) False 6. Alyssa's preferences are represented by U(T, OG) = T + 20G?, where T is toys and OG (other goods) is everything else. Alyssa has an income of $120, the price of a toy is $12, and the price of other goods is (normalized to) $1. True or false? At her utility maximizing bundle, Alysia's MRS of toys for other goods is 12. (a) True (b) False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

5th Edition

1337106666, 978-1337106665

More Books

Students also viewed these Economics questions

Question

=+c) Which model fits better?

Answered: 1 week ago

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago

Question

8. How can an interpreter influence the message?

Answered: 1 week ago