Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
QUESTION 1 Assume that Gina is allocating her budget optimally between two products. If the MU of product X is 40 and its price is
QUESTION 1
- Assume that Gina is allocating her budget optimally between two products. If the MU of product X is 40 and its price is $8, what must be the price of product Y if its MU is 60?
$7.50. | ||
$12. | ||
$16. | ||
$40. | ||
$300. |
QUESTION 2
- What is meant by the termutility?
A measure of a product's usefulness. | ||
A measure of necessity. | ||
The satisfaction or pleasure derived from the consumption of a product. | ||
The benefit derived from the production of a product. |
QUESTION 3
- What will happen if MUA/PA>MUB/PB?
The price of A will be forced to drop. | ||
The price of B will be forced to drop. | ||
The consumer will purchase more of product A. | ||
The consumer will purchase more of product B. |
QUESTION 4
- Under which of the following circumstances will consumers' surplus be greatest?
When price is high and demand is elastic. | ||
When price is low and demand is inelastic. | ||
When price is low and demand is elastic. | ||
When price is high and demand is inelastic. |
QUESTION 5
- What is the term for the selling of an identical product at a different price to different customers for reasons other than cost?
Price discrimination. | ||
Product substitution. | ||
Marginal utility. | ||
Consumer surplus. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started