Chapter 20: Q. 9 (page 464)
Given your answers to Problems and, are Sue's preferences for soft drinks consistent with the law of demand?
Short Answer
Total utility begins to decrease at this time, going from to units.
Chapter 20: Q. 9 (page 464)
Given your answers to Problems and, are Sue's preferences for soft drinks consistent with the law of demand?
Total utility begins to decrease at this time, going from to units.
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Get started for freeWhat is true of the marginal utility per dollar spent on a stomach pacemaker compared with the marginal utility per dollar of food consumed during that interval?
Draw a marginal utility curve corresponding to the total utility curve depicted in Problem .
In Problem , if the consumer's income rises to per week, what new quantities characterize the new consumer optimum?
The table below represents Sue's preferences for bottled water and soft drinks, the combination of which yields the same level of utility.
Calculate Sue's marginal rate of substitution of soft drinks for bottled water at each rate of consumption of water (or soft drinks). Relate the marginal rate of substitution to marginal utility.
Consider the movements that take place from one point to the next ( to to and so on) along the total utility curve as the individual successively increases consumption by one more unit, and answer the questions that follow.
a. Which one-unit increase in consumption from one point to the next along the total utility curve gencrates the highest marginal utility?
b. Which one-unit increase in consumption from one point to the next along the total utility curve gencrates zero marginal utility?
c. Which one-unit increase in consumption from one point to the next along the total utility curve generates negative marginal utility?
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