CAccess to this page has Post Question paraphrangool comXMinbo dho X C A quiz/attempt.php Irfan Islam...

Transcribed Image Text:

CAccess to this page has Post Question paraphrangool comXMinbo dho X C A quiz/attempt.php Irfan Islam John is allocating his household expenditure between groceries and housing in order to maximize total utility. For the quantities of groceries and housing he has chosen, an increase in the price of housing will, everything else being constant, Question 55 Not yet answered Marked out of 0.50 Select one: P Flag question a. reduce the marginal utility per dollar spent on housing. b. increase the marginal utility per dollar spent on housing. c. increase the marginal utility of a unit of housing. d. reduce the marginal utility of a unit of housing. e. have no effect on the marginal utility per dollar spent on housing. Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2, Laurie Question Not yet answered 54 Marked out of 0.50 Select one: P Flag question a. should buy more cheese and less bread in order to maximize her utility. b. should buy more bread and less cheese in order to maximize her utility. C. is buying bread and cheese in utility-maximizing amounts. d. should buy more bread and more cheese in order to maximize her utility. e. is spending too much money on bread and cheese. Question 57 Consider the income and substitution effects of price changes. If the price of a normal good changes, the income effect of the price change will K CAccess to this page ha Post Question paraphrasing tool com X M inbox - davidhowX Canada Rveue AgenX attempt.php Irfan Islam Question 57 Consider the income and substitution effects of price changes. If the price of a normal good changes, the income effect of the price change will Not yet answered Select one: Marked out of 0.50 a. always be larger than the substitution effect. P Flag question b. oppose the substitution effect. c. reinforce the substitution effect. d. always be to increase quantity demanded. e. produce a positively sloped demand curve. Question 58 Given the above diagram, if the market price is $2, the firm will Not yet answered Select one: Marked out of 0.50 a. produce zero output. and suffer a loss equal to its fixed cost, P Flag question ь produce 200 units and make a loss equal to its total fixed cost. c. produce zero output. and make zero profit. d. continue operating in the short run and suffer a loss that is less than its fixed cos. e. produce 300 units and make a loss equal to total variable cost. Question 59 The demand curve for a good with an income alnsticity of ese than onn CAccess to this page has Post Question paraphrangool comXMinbo dho X C A quiz/attempt.php Irfan Islam John is allocating his household expenditure between groceries and housing in order to maximize total utility. For the quantities of groceries and housing he has chosen, an increase in the price of housing will, everything else being constant, Question 55 Not yet answered Marked out of 0.50 Select one: P Flag question a. reduce the marginal utility per dollar spent on housing. b. increase the marginal utility per dollar spent on housing. c. increase the marginal utility of a unit of housing. d. reduce the marginal utility of a unit of housing. e. have no effect on the marginal utility per dollar spent on housing. Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2, Laurie Question Not yet answered 54 Marked out of 0.50 Select one: P Flag question a. should buy more cheese and less bread in order to maximize her utility. b. should buy more bread and less cheese in order to maximize her utility. C. is buying bread and cheese in utility-maximizing amounts. d. should buy more bread and more cheese in order to maximize her utility. e. is spending too much money on bread and cheese. Question 57 Consider the income and substitution effects of price changes. If the price of a normal good changes, the income effect of the price change will K CAccess to this page ha Post Question paraphrasing tool com X M inbox - davidhowX Canada Rveue AgenX attempt.php Irfan Islam Question 57 Consider the income and substitution effects of price changes. If the price of a normal good changes, the income effect of the price change will Not yet answered Select one: Marked out of 0.50 a. always be larger than the substitution effect. P Flag question b. oppose the substitution effect. c. reinforce the substitution effect. d. always be to increase quantity demanded. e. produce a positively sloped demand curve. Question 58 Given the above diagram, if the market price is $2, the firm will Not yet answered Select one: Marked out of 0.50 a. produce zero output. and suffer a loss equal to its fixed cost, P Flag question ь produce 200 units and make a loss equal to its total fixed cost. c. produce zero output. and make zero profit. d. continue operating in the short run and suffer a loss that is less than its fixed cos. e. produce 300 units and make a loss equal to total variable cost. Question 59 The demand curve for a good with an income alnsticity of ese than onn

Answer rating: 100% (QA)

Q55 For the case of equilibrium condition the ratio of marginal utility of a product to its price mu... View the full answer