Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 25, 2024

Billy likes candy and popcorn. Candy sells for $0.50 a bag and popcorn sells for $1 per bag. Currently he is in consumer equilibrium. Then

Billy likes candy and popcorn. Candy sells for $0.50 a bag and popcorn sells for $1 per bag.

Currently he is in consumer equilibrium. Then the price of candy rises to $1 a bag. Which

statement is true in the new consumer equilibrium?

A) Total utility will increase.

B) Marginal utility per dollar on candy will be equal to 2.

C) The marginal utility from candy will decrease.

D) The marginal utility from popcorn will increase.

E) The marginal utility from candy will be equal to the marginal utility from popcorn.

why is E not A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Dynamic Business Law

Authors: Nancy Kubasek

1st Edition

0073524913, 9780073524917

More Books

Students also viewed these Economics questions

Question

★★★★★

Barton Enterprises purchased equipment on January 1, 2017, at a cost of 350,000. Barton uses the straight-line depreciation method, a 5-year estimated useful life, and no residual value. At the end...

Answered: 1 week ago

Question

★★★★★

In what sense was this spill in the Gulf not an externality? Should the government require deepwater oil companies to spend whatever it takes to reduce the chance of future spills to zero?

Answered: 1 week ago

Question

★★★★★

What are the implications of Lockes contention that there is nothing in the intellect that was not previously in the senses.

Answered: 1 week ago

Question

★★★★★

How should the results of installment sales be reported on the income statement?

Answered: 1 week ago

Question

★★★★★

Q 1 Create a MATLAB script file to calculate the following expression: y = c o s 2 ( 3 x 5 ) + t a n ( x 1 . 7 1 1 ) where x = 2 Q 2 Create a MATLAB script file to plot the function y = 5 t 2 - ( t +...

Answered: 1 week ago

Question

★★★★★

write the answer in 1000 or more words from given information Contents Executive summary Outline. Introducing of selected company ( background commerce ) . Analysis.. Infrastructure and business...

Answered: 1 week ago

Question

★★★★★

The company s suppliers are in Asia. What strategy should the company adopt for raw material inventory management as well as finished goods inventory management. Please recommend a distribution grid...

Answered: 1 week ago

Question

★★★★★

Action Memo : Write and submit an action memo to the chief executive officer of a manufacturing company recommending an approach for future energy efficiency and renewable energy development, using...

Answered: 1 week ago

Question

★★★★★

An educational consultant claims that the average IQ of high school students in a particular city is at least 110. To verify this claim, a school board selects a random sample of 20 students and...

Answered: 1 week ago

Question

★★★★★

Below are summary cash flow statements for three roughly equal-sized companies. ($ millions) A B C Net cash flows from operating activities (312 ) (312 ) 324 Net cash used in investing activities...

Answered: 1 week ago

Question

★★★★★

You are a Chartered Certified Accountant and the newly appointed Internal Auditor of a company that is experiencing financial difficulties. As a condition for obtaining bank loans, the company has...

Answered: 1 week ago

Question

★★★★★

A transponder for a toll bridge costs $ 1 7 . 5 0 . With the transponder, the toll is $ 5 each time you cross the bridge. The only other option is toll - by - plate, for which the toll is $ 5 . 2 5...

Answered: 1 week ago

Question

★★★★★

1. Think of a situation in the workplace where you meet a person for the first time, which you know you will have a lot to do with in the future. a. Name three things about yourself that you will try...

Answered: 1 week ago

Question

★★★★★

3. List four points that you think are important to give the individual attention, when he or she is going to sell an argument or an idea to you.

Answered: 1 week ago

Question

★★★★★

4. Think of a situation where you would convince someone of an argument or an idea you had. a. What feelings did you want the other person to be left with when you finished? b. When you think about...

Answered: 1 week ago

Previous Question Next Question