Tintin is a young Belgian reporter and an adventurer. He is currently in Shanghai, China, working on his case, "The Blue Lotus", with his wire fox terrier, Snowy. In the midst of his busy schedule, Tintin needs to figure out what to eat for lunch. His aim is to maximize his utility/satisfaction level from consuming the meal.

Tintin has two food choices available to him: one of China's famous noodles dish, Dandanmian, and some pearl meatballs, a delicious dish from central China.

Tintin is a young and busy reporter with a healthy appetite. He needs to find out the optimal number of noodles servings and meatballs servings that will maximize his satisfaction from lunch.

Let one small bowl (i.e., one serving) of dandanmian be denoted byX_1,and the price of one serving to be3Chinese yuan.

Let one serving of pearl meatballs be denoted byX₂and the price of one serving to be4Chinese yuan.

Tintin has24 yuanavailable as his lunch money. His utility function is given by the following utility function; U(X₁, X₂) = 6X₁X₂.

Can you help Tintin find hisoptimal "noodles-meatballs" consumption bundle? Before you do that, answer the following questions.

Question 1

Given Tintin's utility function, what is Tintin's level of utility for2servings ofX₁and2servings ofX₂?

a. U = 6

b. U = 12

c. U = 24

d. U = 36

Question 2

If Tintin's consumption bundle now has one extra unit of X₁(i.e., X₁is now 3 units) but X₂remains unchanged (i.e., X₂is still 2 units), what is Tintin'stotal utilityfrom consuming this bundle?

a. U = 24

b. U = 36

c. U = 30

d. U = 18

Question 3

Given Tintin's utility function, U = 6X₁X₂, what will be thechangein Tintin's utility level when X₁increases by one unit from 2 to 3 (X₂still remaining unchanged at 2 units)?

a. Change in utility level is 12.

b. Change in utility level is 15.

c. Change in utility level is 24

d. Change in utility level is 6.

Question 4

1pts

What is Tintin'sbudgetequation?

a. 24 = 6X1 +4X2

b. 24 = 3X1 +6X2

c. 24 = 4X1 +3X2

d. 24 = 3X1 +4X2

Question 5

Given Tintin's budget and the prices, how many servings of X₁can he buy if heonly chooses to buy X₁(i.e., if he chose X₂to be 0 units)?

Group of answer choices

a. X1 = 4

b. X1 = 6

c. X1 = 8

d. X1 = 12

Ques 6: Whattype of preferencesdoes Tintin have over dandanmian (X₁) and pearl meatballs (X₂)?

a. Tintin's utility function exhibits that the two dishes are perfect complements for him.

b. Tintin's utility function exhibits Cobb Douglas preferences

c. Tintin's utility function exhibits that the two dishes are perfect substitutes for him.

d. Tintin has lexicographic preferences for the two goods.

Ques 7: Given his utility function, what is Tintin'smarginal utility of increasing X₁by 1 unit when X₂= 1?

a. 2

b. 6

c. 3

d. 1/6

Ques. 8: What is themarginal utility of X₂when X₁= 1?

a. 2

b. 3

c. 6

d. 1/6

Ques. 9: Can you calculate the numerical value of Tintin'smarginal rate of substitutionfor the following values of X₁and X₂:

X₁= 1 and X₂= 1?

a. 2

b. 1/2

c. 6

d. 1

Q. 10 Can you calculate the numerical value of Tintin'smarginal rate of substitutionfor the following values of X₁and X₂:

X₁= 1 and X₂= 1?

Group of answer choices

a. 2

b. 1/2

c. 6

d. 1

Q11. What is theslopeof Tintin'sbudgetline?

Group of answer choices

a. 2

b. 1/2

c. 1/3

d. 3/4

Q 12. If Tintin ends up choosing2 bowls of noodles (X₁)and2 servings of meatballs (X₂), do you think he will be able tomaximizehis utility level?

Group of answer choices

a. Yes, Tintin will maximize his utility if he chooses this bundle.

b. No, Tintin will not maximize his utility level if he chooses this bundle.

c. Maybe.

Q13. Question 13

1pts

With the help of your knowledge of microeconomic theory, can you find the consumption bundle that willmaximize Tintin's utilityfrom his lunch?

Group of answer choices

a. X1 = 0, X2 = 4

b. X1 = 2, X2 = 2

c. X1 = 3, X2 = 4

d. X1 = 4, X2 = 3

Q. 14. What is Tintin'stotal level of utilitywhen he buys and consumes the optimal combination of noodles and meatballs?

Group of answer choices

a. U = 48

b. U = 60

c. U = 64

d. U = 72

Now suppose with your help, Tintin has managed to maximize his utility by choosing the optimal consumption bundle. He has really enjoyed the dishes so he decides to go back to the same shop to buy his lunch the following day. His lunch budget is unchanged (i.e., 24 yuan). He finds the price of meatballs(X₂) is also unchanged (i.e., 4 yuan) but the price of noodles (X₁) has dropped from 3 yuan per serving to 2 yuan because the shop is offering a one-day "noodles discount".

As to be expected, his utility function remains the same as before, i.e., U = 6X₁X₂.

[Note, a consumer's preferences (represented by the utility function) are not likely to change overnight.]

Q15. Given Tintin's budget and the new set of prices,howmany servings of X₁can he buy if he only chooses to buy X₁(i.e., if he chose X₂to be 0 unit)?

Group of answer choices

a. X1 = 6

b. X1 = 8

c. X1 = 10

d. X1 = 12

Q16. Given Tintin's budget and the new set of prices,how many servings of X₂can he buy if he only chooses to buy X₂(i.e., if he chose X₁to be 0 unit)?

Group of answer choices

a. X2 = 4

b. X2 = 6

c. X2 = 8

d. X2 = 12

Q17.

Can you find Tintin's optimal consumption bundlenow?

Group of answer choices

a. X1 = 2, X2 = 4

b. X1 = 4, X2 = 3

c. X1 = 6, X2 = 3

d. X1 = 3, X2 = 6

Q18. What is Tintin's total utility level at his new optimal consumption bundle?

Group of answer choices

a. U = 72

b. U = 96

c. U = 108

d. U = 120

Q19. What observation do you make of Tintin's response to a drop in the price of noodles? How did Tintin's response to the price change help Tintin?

Group of answer choices

a. Tintin incorporated the new information about the drop in noodles' price to find his new optimal consumption bundle. His new decision/choice helped him to increase his utility level i.e., reach a higher indifference curve.

b. Tintin incorporated the new information about the drop in noodles' price to find his new consumption bundle. His new decision/choice hurt him because it decreased his utility level i.e., he ended up on a lower indifference curve.

c. Tintin did not respond to the price change because the new information about the drop in noodles' price is irrelevant to his satisfaction level.

d. I have no idea.

Q20. In the language of microeconomic theory, what is the name given to Tintin's response as a consumer to a drop in the price of noodles?

Group of answer choices

a. Noodles effect

b. Income Effect

c. Substitution Effect

d. Price Effect