Question
In: Economics
If Wanda, the consumer, is currently purchasing 1 apple and 3 oranges, is she maximizing her utility? Why or why not?
Answer the question on the basis of the following total utility data for apples and oranges. Assume that the prices of apples are $3 and oranges are $4, and that the consumer's income is $18.
| Apples | Total Utility | Oranges | Total Utility |
| 1 | 9 | 1 | 16 |
| 2 | 15 | 2 | 28 |
| 3 | 18 | 3 | 36 |
| 4 | 20 | 4 | 40 |
| 5 | 21 | 5 | 42 |
If Wanda, the consumer, is currently purchasing 1 apple and 3 oranges, is she maximizing her utility? Why or why not? If she is not, what combination should she purchase to maximize her utility, and explain why?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A utility-maximizing consumer believes two goods are Perfect Substitutes u(x, y) = 3x + 4y. She...
A utility-maximizing consumer believes two goods are Perfect
Substitutes u(x, y) = 3x + 4y. She pays pY = 2 and
pX = 1. Her income is m = 24. Next month the price of
good x will rise to pX = 3. Round your final answers to
3 decimal places.
What is the EV, CV and Approximate ΔCS?
5) Suppose a consumer of oranges and tangerines is currently in equilibrium. If the price of...
5) Suppose a consumer of oranges and tangerines is currently in
equilibrium. If the price of tangerines falls, the consumer will
attempt to restore equilibrium by:
A) buying more oranges B)
buying fewer tangerines C )buying more
tangerines D) A and B E) None of
the above
6) Jasper LLC's total cost is $10500 and the average total cost
is $17.50; how many units are they producing?_________
7) When Jasper LLC produces Q=700, ATC=17.50; what is
TC?____________
Refer to questions...
The state legislators recognize that consumer demand is determine by the Utility Maximizing point, but are...
The state legislators recognize that consumer demand is
determine by the Utility
Maximizing point, but are unsure of how the Utility Maximizing
point is found. Explain
the relationship between the budget line and an indifference
curve at the Utility
Maximizing point and how tangency between two curves factors
into this.
The state legislators recognize that consumer demand is determine by the Utility Maximizing point, but are...
The state legislators recognize that consumer demand is
determine by the Utility
Maximizing point, but are unsure of how the Utility Maximizing
point is found. Explain
the relationship between the budget line and an indifference
curve at the Utility
Maximizing point and how tangency between two curves factors
into this.
A utility-maximizing consumer who consumes quantity x and y of two goods has a quadratic utility...
A utility-maximizing consumer who consumes quantity x and y of
two goods has a quadratic utility function given by
Ux,y=x+y-0.05x2-0.05y2
subject to
2x+5y=128
Where $128 is the consumer’s budget and the prices of the two
goods are, respectively, 2 and 5. Assuming marginal utilities Ux,
Uy > 0,
a. Find the quantity x and y that maximize the utility function.
b. Using bordered Hessian, check utility for a maximum.
c. What is the maximum utility of the consumer?
A utility-maximizing consumer who consumes quantity x and y of two goods has a quadratic utility...
A utility-maximizing consumer who consumes quantity x and y of
two goods has a quadratic utility function given by
Ux,y=x+y-0.05x2-0.05y2
subject to
2x+5y=128
Where $128 is the consumer’s budget and the prices of the two
goods are, respectively, 2 and 5. Assuming marginal utilities Ux,
Uy > 0,
a. Find the quantity x and y that maximize the utility function.
b. Using bordered Hessian, check utility for a maximum.
c. What is the maximum utility of the consumer?
A utility-maximizing consumer who consumes quantity x and y of two goods has a quadratic utility...
A utility-maximizing consumer who consumes quantity x and y of
two goods has a quadratic utility function given by
Ux,y=x+y-0.05x2-0.05y2
subject to
2x+5y=128
Where $128 is the consumer’s budget and the prices of the two
goods are, respectively, 2 and 5. Assuming marginal utilities Ux,
Uy > 0,
a. Find the quantity x and y that maximize the utility function.
b. Using bordered Hessian, check utility for a maximum.
c. What is the maximum utility of the consumer?
A utility-maximizing consumer who consumes quantity x and y of two goods has a quadratic utility...
A utility-maximizing consumer who consumes quantity x and y of
two goods has a quadratic utility function given by
Ux,y=x+y-0.05x2-0.05y2
subject to
2x+5y=128
Where $128 is the consumer’s budget and the prices of the two
goods are, respectively, 2 and 5. Assuming marginal utilities Ux,
Uy > 0,
a. Find the quantity x and y that maximize the utility function.
b. Using bordered Hessian, check utility for a maximum.
c. What is the maximum utility of the consumer?
we'vr learned that the consumer ms utility maximizing choice is where the ratio of the marginal...
we'vr learned that the consumer ms utility maximizing choice is
where the ratio of the marginal utility of two good are equal to
each other (Mux/px=Muy/py).what does this condition mean and wht is
it the utility maximizing choice?explain
Question 21. Shelley is maximizing utility in her consumption of mansions and Porsches. If the marginal...
Question 21.
Shelley is maximizing utility in her consumption of mansions and
Porsches. If the marginal utility from her last purchased mansion
is twice the marginal utility from her last purchased Porsche, then
we know
A) Shelley buys twice as many mansions as Porsches.
B) Shelley buys twice as many Porsches as mansions.
C) Shelley buys more Porsches than mansions, but we do not know
how many more.
D) the price of a mansion is twice the price of a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- • Using the Scanner class to obtain input from the user. • Using printf to output...
- In each of the following situations, develop a tentative plan for the client. List the various...
- MARGI sells different types of wine. Customers place orders to the most popular “Summer Wine” at...
- Java. If possible please put explanations for each line of code. Write a test program that...
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
ADVERTISEMENT