Q a fill in the figures for marginal utility and marginal

Assignment Help Other Subject

Reference no: EM13353573

Q. a. Fill in the figures for marginal utility and marginal utility per dollar for both movies and books.

b. Are these preferences consistent with the law of diminishing marginal utility? Explain in brief.

c. Given the budget of $80, what quantity of books and what quantity of movies will maximize Joe's level of satisfaction? Explain briefly.

d. Draw the budget constraint (with books on the horizontal axis) and identify the optimal combination of books and movies as point A.

e. Now assume the price of books falls to $ 10. Which of the columns in the table must be recalculated? Do the required recalculations.

f. After the price change, how several movies and how many books will Alexandr purchase?

g. illustrate the new budget constraint and identify the new optimal combination of books and movies as point B.

h. If you calculated correctly, you found that a decrease in the price of books caused Alexandr to purchase more movies as well as more books. How can this be?

Reference no: EM13353573

Questions Cloud

Q1 suppose that the rate of sending an international fax is : q1. suppose that the rate of sending an international fax is calculated as follows service charges 3.00 .20 per page

A country that does not currently tax cigarettes is : a country that does not currently tax cigarettes is considering the introduction of a 0.40 per pack tax. the economic

Q complete an apa-formatted two-page paper not including : q. complete an apa-formatted two-page paper not including the title and reference pages answering the

Q1 if you are the chief economist of a country experiencing : q1. if you are the chief economist of a country experiencing high unemployment as well as flat gdp what macroeconomic

Q a fill in the figures for marginal utility and marginal : q. a. fill in the figures for marginal utility and marginal utility per dollar for both movies and books.b. are these

Q assume that all young women were channeled into careers : q. assume that all young women were channeled into careers as secretaries nurses as well as teachers at the same time

Q the federal emergency management agency fema creates : q. the federal emergency management agency fema creates several mechanisms for communicating with the public. read are

Q many small boats are made of fiberglass which is derived : q. many small boats are made of fiberglass which is derived from crude oil. assume the cost of oil risesa. using

Q 1 determine the excellence of steam at 19853 kpa when 470 : q. 1. determine the excellence of steam at 198.53 kpa when 470 kjkg of energy are lost from saturated steam. what is

User Account

All Pages