Question
In: Economics
Mr Adam’s daily income is $20 per day. He spends all of the income on buying...
Mr Adam’s daily income is $20 per day. He spends all of the
income on buying apples and oranges. The
prices are: $ 2 per apple and $ 4 per orange.
g) Using the given scenario discuss the concept of maximizing
utility in detail. How is the concept of
maximizing utility related to the definition of microeconomics?
Let’s assume, Mr Adam is consuming 4 apples and 3 oranges per day.
The marginal utility from apples is
10 utils and marginal utility from oranges is 12 utils.
h) Is Mr Adam maximizing utility? Explain briefly.
i) If Mr Adam is not maximizing utility, then how can he maximize
utility? Explain in detail.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
(a) Haris spends all of his income on apples and oranges. He thinks that apples and...
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What would...
Your Econ 201 professor has a daily budget of $40, and he spends it entirely on...
Your Econ 201 professor has a daily budget of $40, and he
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If Paddy spends all of his time producing waffles, he can produce 3,000 waffles per week....
If Paddy spends all of his time producing waffles, he
can produce 3,000 waffles per week. If, instead, he spends all of
his time growing strawberries, he can grow 1,000 pints of
strawberries per week. If Thomas spends all of his time producing
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spends all of his time growing strawberries, he can grow 250 pints
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Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and bananas...
Robinson spends all his income on mangos and bananas. Mangos
cost $3 per pound and bananas cost $1 per pound. The marginal
utility is 30 for the last pound of mangos purchased and 8 for the
last pound of bananas. To maximize his utility, Robinson should
buy
a. only bananas.
b. more mangos and fewer bananas.
c. more bananas and fewer mangos.
d. the present combination of goods.
Phineas receives $100 per week from his parents. He spends his entire income on two goods:...
Phineas receives $100 per week from his parents. He spends his
entire income on two goods: Sprite (which cost $2 each) and chicken
burgers (which cost $4 each). a) (8 points) Draw Phineas's budget
constraint. Suppose that Phineas decides to purchase 20 Sprites and
20 chicken burgers this week. Is this choice within Phineas's
opportunity set? Explain and show this choice on your graph. (Do
not forget to label the axes of your graph)
b) (2 pts) What is the...
Phineas receives $100 per week from his parents. He spends his entire income on two goods:...
Phineas receives $100 per week from his parents. He spends his
entire income on two goods: Sprite (which cost $2 each) and chicken
burgers (which cost $4 each). a) (8 points) Draw Phineas's budget
constraint. Suppose that Phineas decides to purchase 20 Sprites and
20 chicken burgers this week. Is this choice within Phineas's
opportunity set? Explain and show this choice on your graph. (Do
not forget to label the axes of your graph)
b) (2 pts) What is the...
What is the relationship between the number of minutes per day a woman spends talking on...
What is the relationship between the number of minutes per day a
woman spends talking on the phone and the woman's weight? The time
on the phone and weight for 8 women are shown in the table
below.
Time
61
80
32
38
74
71
33
59
Pounds
131
132
109
124
130
125
102
128
Find the correlation coefficient:
r=r= Round to 2 decimal places.
The null and alternative hypotheses for correlation are:
H0:H0: ? ρ μ r == 0
H1:H1:...
What is the relationship between the number of minutes per day a woman spends talking on...
What is the relationship between the number of minutes per day a
woman spends talking on the phone and the woman's weight? The time
on the phone and weight for 7 women are shown in the table
below.
Time40601737774652
Pounds139196127150208176182
Find the correlation coefficient:
r=r= Round to 2 decimal places.
The null and alternative hypotheses for correlation are:
H0:H0: ? ρ μ r == 0
H1:H1: ? ρ r μ ≠≠ 0
The p-value is: (Round to four decimal
places)
Use a level...
What is the relationship between the number of minutes per day a woman spends talking on...
What is the relationship between the number of minutes per day a
woman spends talking on the phone and the woman's weight? The time
on the phone and weight for 8 women are shown in the table
below.
Time
29
12
64
90
59
36
53
65
Pounds
99
113
131
148
113
125
115
127
Find the correlation coefficient: r=r= Round to 2
decimal places.
The null and alternative hypotheses for correlation are:
H0:H0: ?rμρ == 0
H1:H1: ?μρr...
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