Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

can you help me and explain this The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

can you help me and explain this

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8. 16 Good A Good B Quantity MUA Quantity MUE 1 10 1 16 2 9 2 14 3 3 12 Book 4 4 10 5 6 8 6 6 6 4 4 If the consumer spends the given budget and gets maximum utility out of it, then she is receiving how much satisfaction from each dollar spent on the final unit of good A consumed? Multiple Choice O 14 utils per dollar O 7 utils per dollar O 8 utils per dollar O 4 utils per dollarSuppose Justine and Sarah are playing the ultimatum game. Justine is the proposer, has $30 to allocate, and Sarah can accept or reject the offer. Based on repeated experiments of the ultimatum game. what combination of payouts to Justine and Sarah is most likely to occur? 17 Multiple Choice eBook O $30 for Justine and $0 for Sarah O $16 for Justine and $14 for Sarah O $20 for Justine and $10 for Sarah O $0 for Justine and $30 for Sarah18 Assume that a consumer purchases a combination of product A and product B such that the MU;/P; = 4 and MUp/Pp = 6. To maximize utility without spending more money, the consumer should Multiple Choice eBook O purchase more of product A and less of product B. O purchase less of product A and more of product B. O purchase more of both product A and product B. O make no change in purchases of products A and B.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

Students also viewed these Economics questions