14. Five consumers have the following marginal utility of apples and pears: Jerry George Elaine Kramer...

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14. Five consumers have the following marginal utility of apples and pears: Jerry George Elaine Kramer Newman Marginal Utility of Apples 6 6 3 12 Marginal Utility of Pears 6 6 The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change their spending? 1. a. Suppose a consumer only buys two goods: hot dogs and hamburgers. Suppose the price of hot dogs is €1, the price of hamburgers is €2, and the consumer's income is €20. Quantity of Hot Dogs Plot the consumer's budget constraint in Exhibit 1. Measure the quantity of hot dogs on the vertical axis and the quantity of hamburgers on the horizontal axis. Explicitly plot the points on the budget constraint associated with the even numbered quantities of hamburgers (0, 2, 4, 6 Exhibit 1 20 18 16 14 12 10 42086420 4 CO 8 12 16 20 Quantity of Hamburgers 14. Five consumers have the following marginal utility of apples and pears: Jerry George Elaine Kramer Newman Marginal Utility of Apples 6 6 3 12 Marginal Utility of Pears 6 6 The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change their spending? 1. a. Suppose a consumer only buys two goods: hot dogs and hamburgers. Suppose the price of hot dogs is €1, the price of hamburgers is €2, and the consumer's income is €20. Quantity of Hot Dogs Plot the consumer's budget constraint in Exhibit 1. Measure the quantity of hot dogs on the vertical axis and the quantity of hamburgers on the horizontal axis. Explicitly plot the points on the budget constraint associated with the even numbered quantities of hamburgers (0, 2, 4, 6 Exhibit 1 20 18 16 14 12 10 42086420 4 CO 8 12 16 20 Quantity of Hamburgers 14. Five consumers have the following marginal utility of apples and pears: Jerry George Elaine Kramer Newman Marginal Utility of Apples 6 6 3 12 Marginal Utility of Pears 6 6 The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change their spending? 1. a. Suppose a consumer only buys two goods: hot dogs and hamburgers. Suppose the price of hot dogs is €1, the price of hamburgers is €2, and the consumer's income is €20. Quantity of Hot Dogs Plot the consumer's budget constraint in Exhibit 1. Measure the quantity of hot dogs on the vertical axis and the quantity of hamburgers on the horizontal axis. Explicitly plot the points on the budget constraint associated with the even numbered quantities of hamburgers (0, 2, 4, 6 Exhibit 1 20 18 16 14 12 10 42086420 4 CO 8 12 16 20 Quantity of Hamburgers 14. Five consumers have the following marginal utility of apples and pears: Jerry George Elaine Kramer Newman Marginal Utility of Apples 6 6 3 12 Marginal Utility of Pears 6 6 The price of an apple is $2, and the price of a pear is $1. Which, if any, of these consumers are optimizing over their choice of fruit? For those who are not, how should they change their spending? 1. a. Suppose a consumer only buys two goods: hot dogs and hamburgers. Suppose the price of hot dogs is €1, the price of hamburgers is €2, and the consumer's income is €20. Quantity of Hot Dogs Plot the consumer's budget constraint in Exhibit 1. Measure the quantity of hot dogs on the vertical axis and the quantity of hamburgers on the horizontal axis. Explicitly plot the points on the budget constraint associated with the even numbered quantities of hamburgers (0, 2, 4, 6 Exhibit 1 20 18 16 14 12 10 42086420 4 CO 8 12 16 20 Quantity of Hamburgers

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