1- Answer the following questions about consumer preferences: a. If Nada prefers Diet Coke to Diet...

1- Answer the following questions about consumer preferences:

a. If Nada prefers Diet Coke to Diet Pepsi and Diet Pepsi to regular Pepsi but is indifferent between Diet Coke and Classic Coke, what are her preferences between Classic Coke and regular Pepsi?

b. If Hadi purchases a Ford Mustang rather than a Ferrari, what are his preferences between the two cars?

c. If Ayya purchases a Ferrari rather than a Ford Mustang, what are her preferences between the two cars?

d. Samer and Saba are having a soft drink together. Coke and Pepsi are the same price. If Samer orders a Pepsi and Saba orders a Coke, what are the preferences of each between the two colas?

Solutions

Expert Solution

Answer-A, If Nada prefers Diet Coke to Diet Pepsi and Diet Pepsi to regular Pepsi but is indifferent between Diet Coke and Classic Coke, what are her preferences between Classic Coke and regular Pepsi, in this case, Nada prefers classic coke to regular Pepsi

B, If Hadi purchases a Ford Mustang rather than a Ferrari, what are his preferences between the two cars, in this case, cannot say because the Ferrari obviously costs more than the ford mustang. He might prefer the Ferrari but isn’t willing or able to pay the higher price.

C, If Ayya purchases a Ferrari rather than a Ford Mustang, what are her preferences between the two cars in this case Arya clearly prefers the Ferrari because Arya is willing to pay the higher price.

D, Samer, and Saba are having a soft drink together. Coke and Pepsi are the same price. If Samer orders a Pepsi and Saba orders a Coke, what are the preferences of each between the two colas,in this case here both are them are choosing different brand colas according to their choice and taste.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

1- Answer the following questions about consumer preferences: a. If Nada prefers Diet Coke to Diet...

1- Answer the following questions about consumer preferences: a. If Nada prefers Diet Coke to Diet Pepsi and Diet Pepsi to regular Pepsi but is indifferent between Diet Coke and Classic Coke, what are her preferences between Classic Coke and regular Pepsi? b. If Hadi purchases a Ford Mustang rather than a Ferrari, what are his preferences between the two cars? c. If Ayya purchases a Ferrari rather than a Ford Mustang, what are her preferences between the two cars?...

Answer each of the following questions about demand and consumer surplus a. What is consumer surplus,...

Answer each of the following questions about demand and consumer surplus a. What is consumer surplus, and how is it measured? b. What is the relationship between the demand curve and the willingness to pay? c. Other things equal, what happens to consumer surplus if the price of a good falls? Why? Illustrate using a demand curve. d. In what way does the demand curve represent the benefit consumers receive from participating in a market? In addition to the demand...

Answer these questions below for "PALEO Diet": 1. Describe the basic composition of the Paleo diet...

Answer these questions below for "PALEO Diet": 1. Describe the basic composition of the Paleo diet and indicate its suggested health benefits 2. What are the main sources of energy in Paleo diet? 3. What is the breakdown of macronutrient energy sources (% carbohydrate, % fat and % protein) in Paleo diet? 4. What is the breakdown of fats (saturated, unsaturated, monounsaturated, polyunsaturated) in Paleo diet? 5. What is the breakdown of carbohydrates (sugars, fiber) in Paleo diet? 6. Is...

After watching the video Consumer Choice & Protection answer the following questions; 1/ What is the...

After watching the video Consumer Choice & Protection answer the following questions; 1/ What is the market approach to consumer protection? 2/ In what ways does it fall short of completely protecting consumers?

List and carefully explain the three assumptions made about consumer preferences.

Use the following information to answer 31-35 Consider Jen, a consumer with preferences U left parenthesis...

Use the following information to answer 31-35 Consider Jen, a consumer with preferences U left parenthesis H comma F right parenthesis equals 0.4 log F plus space 0.6 log H, where H is the quantity of housing and F is the quantity of food (per month). Suppose Jen has a stipend of $1000/month which she uses to purchase food at a price of $2/unit and housing at a price of $3/unit. Jen's utility-maximizing bundle of goods should be. A. (170F,...

1. Answer the following questions about the pancreas. (a) What is the general role of the...

1. Answer the following questions about the pancreas. (a) What is the general role of the pancreas in digestion? (b) When does the hepatopancreatic duct open? (c) What would you guess is the reason that many of the digestive enzymes produced by the pancreas are released as zymogens, rather than as fully functional enzymes? 2. Answer the following questions regarding the large intestine. (a) What is the main substance absorbed from the large intestine? (b) What do you consider the...

Answer the following questions with reference and citations: 1. Explain why consumer market testing might not...

Answer the following questions with reference and citations: 1. Explain why consumer market testing might not always be beneficial. 2. Discuss the dilemma faced by all firms of trying to listen to customers’ needs and wants and, yet, also trying to develop new products for those customers that they do not yet serve. 3. Discuss the many reasons why so many new products fail. Are there additional reasons?

Suppose coke (c) and hamburgers (h) provide a consumer utility of U(c,h)= (c∗h)^1/2 (a) If coke...

Suppose coke (c) and hamburgers (h) provide a consumer utility of U(c,h)= (c∗h)^1/2 (a) If coke costs 1 TL and hamburger costs 25 TL, how should this consumer spend 100 TL that his mother gives him to maximize his utility? (b) Suppose government wants to discourage coke consumption by taxing coke by 3 TL. From the point of consumer is it better to tax coke or to tax income?

For the two preferences described below, please answer the following questions. (i) Write down a utility...

For the two preferences described below, please answer the following questions. (i) Write down a utility function that is consistent with the description of the preference. (ii) Draw indifference curve maps for the individual. Label both axis. Indicate marginal rate of substitution on your graph and whether it is diminishing. (iii) Obtain the demand function for both good x and y. (iv) Describe how an increase in income would affect John and Mary’s consumption bundles. John and Mary’s preferences are...

Subjects