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
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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
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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
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A) Shelley buys twice as many mansions as Porsches.
B) Shelley buys twice as many Porsches as mansions.
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