Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coke MUCake Pizza 12 28 19 6 0 00 24 20 16 12 8 Andy derives utility from two goods, Pizza (P) and Coke (C).

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
Coke MUCake Pizza 12 28 19 6 0 00 24 20 16 12 8 Andy derives utility from two goods, Pizza (P) and Coke (C). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given in the table above. If the price of Pizza is $4 per slice and the price of Coke is $2 and Andy has an income of $22. How many slices of Pizza will he consume? OA. 4 OB. 1 OC. 3 OD. 2Bill uses his entire budget to purchase Pepsi and hamburgers, and he currently purchases 2 cans of Pepsi and 6 hamburgers per week. The price of Pepsi is $2 per can, the price of a hamburger is $5, Bill's marginal utility from Pepsi is 1, and his marginal utility from hamburgers is 3. Which of the following is necessarily true? A. Bill could increase his utility by buying less Pepsi and fewer hamburgers. O B. Bill could increase his utility by buying less Pepsi and more hamburgers. O C. Bill could increase his utility by buying more Pepsi and fewer hamburgers. D. Bill is already at his utility maximizing bundle.Assume the price of Coke is $1 and the price of Pizza is $5, and the consumer's income is $25. Which consumption bundle will NOT be the choice of a consumer with monotone preferences. OA. 25 Coke and 0 Pizza OB. 5 Coke and 4 Pizza O C. 3 Coke and 3 Pizza OD. 0 Coke and 5 Pizza OE. None of these options

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

Business Intelligence

Authors: Jerzy Surma

1st Edition

1606491857, 9781606491850

More Books

Students also viewed these Economics questions

Question

7. One or other combination of 16.

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago