Question 31 Not yet answered Poins out or 1 r Rag question Rgure: Comic Books an

Question

Question 31 Not yet answered Poins out or 1 r Rag question Rgure: Comic Books and Coffee 2 ubility $20 17 15 13 12 34S910 Comie books 120 18 17 16 15 13 10 O Coffee Figure Comic Books and Coffee 2) Refer to the figure, ifa consumer has $2 to spend on comic bo of coffee? oks priced at S1 per come book) and coree pree r S, per cup, should tne she buy two cuss Select on a No she should put back one cup of coffee (osing 16 ueis) and replace t with a comic book (paining 18 ucls o b Yes because she marginal utlity of che second comic book is ess than the ma gina welity of the secend cup of coffee ? ? Yes, buying tro cuo, o, co-ee maximizes her total utilty d. No, she should buy two comic books to maximize utsity

Explanation / Answer

Question:- refer to the figure, if a consumer has $2 to spend on comic books (priced as $1 per comic book( and coffee ( price as $1 per cup), should she buy two cup of coffee

Answer:- No, the consumer should put back one cup of coffee (losing 16 utils) and replace it with a comic book (gaining 18 utils).

Question:- refer to the figure, what caused the consumer's consumption bundle in this figure to switch from bundle A to bundle B

Answer:- An increase in the price of music download

Reason:- When the price of the products is increased, the consumption bundle will be shifted from one bundle to other.

Question:- consumption bundle A contains 6 donuts 2 cups of coffee and consumption bundle B contains 4 donuts and 1.5 cups of coffee. Bundle A and bundle B cold lie on the same indifference curve

Answer:- False

Reason:- Different combination of products will have e different indifference curves.

Question:- if you purchase a ticket to a concert but then lose the ticket, a rational consumer would

Answer:- Would repurchase the ticket as long as the price has not changed and income effect is low

Reason:- When the price is same and there is no significant change in income, the consumer will buy the ticket to have the maximum utility.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.