Ted's preference for two goods X and Y is expressed in the following indifference schedule: Quantity...

 

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Ted's preference for two goods X and Y is expressed in the following indifference schedule: Quantity X Y 00 109 1817 25 23 10 1 12 6 7 30 27 33 30 35 32 36 32 1- Graph total utility of X and Y. What do the graph imply? 2- Find marginal utility of X and marginal utility of Y and graph them. What do the graphs imply? 3- Prices of X and Y are $1.00 and 50 cents, respectively. Ted has no more than $4.00 to spend on X and Y. How many units of X and Y will Ted buy? 4- Suppose price of Y rises to $1.00. How would Ted change the quantities purchased of X and Y? How many units of each will Ted buy? 5- Now, suppose that price of Y falls to 25 cents per unit. How many units of X and Y will Ted buy? 6- Based on the information provided in 3-5, graph Ted's demand for Y. 7- Find the arc-price elasticity of demand for Y for prices $1.00 and 50 cents. Ted's preference for two goods X and Y is expressed in the following indifference schedule: Quantity X Y 00 109 1817 25 23 10 1 12 6 7 30 27 33 30 35 32 36 32 1- Graph total utility of X and Y. What do the graph imply? 2- Find marginal utility of X and marginal utility of Y and graph them. What do the graphs imply? 3- Prices of X and Y are $1.00 and 50 cents, respectively. Ted has no more than $4.00 to spend on X and Y. How many units of X and Y will Ted buy? 4- Suppose price of Y rises to $1.00. How would Ted change the quantities purchased of X and Y? How many units of each will Ted buy? 5- Now, suppose that price of Y falls to 25 cents per unit. How many units of X and Y will Ted buy? 6- Based on the information provided in 3-5, graph Ted's demand for Y. 7- Find the arc-price elasticity of demand for Y for prices $1.00 and 50 cents.

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These questions are regarding consumer behavior and utility in microeconomics specifically referring to indifference curves marginal utility and price elasticity of demand Lets address each question o... View the full answer