Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $1.00 and the price of a banana is $0.50. If the consumer decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income? 12 bananas   5 bananas   8 bananas

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: The utility maximizing level is given as MUx/Px= MUy/Py Good X   Good Y   Quantity MUx/Px…

Q: 10) A consumption points inside the budget line A) is unaffordable. B) shows that the consumer…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

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A: Units of X MUX Units of Y MUY MUX/Price of X MUY/Price of Y Total utility of X Total utility of Y…

Q: Suppose that a consumer always consumes 2 spoons of sugar with each cup of coffee. If the price of…

A:

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: (Q) Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are:…

Q: Suppose that initially, bread is $2 per loaf, and cake is $2 per slice. Marie Antoinette has $18 to…

A: The substitution effect is given by the change in consumption of bread between the initial and…

Q: If a consumer is consuming a combination of goods and services on his budget line, has the consumer…

A: The budget line is the graphical representation of all the possible combinations of two different…

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A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: Assume that a consumer has a given budget or income of $10 and that she can buy only two goods,…

A: In the mentioned question we have been asked about the slope of the budget as the given consumer…

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A: Budget line shows the graphical representation of Budget Constraints, which shows the how much…

Q: The graph shows two budget lines and six consumption points (A, B, C, D, E, and F) for Pepsi and Dr…

A: A normal good is whose consumption increases with an increase in income and decreases with a…

Q: Tanya has a budget of £21 to spend on toothbrushes and tooth paste. she does not receive any utility…

A: Answer - Given in the question - Income = 21 Price of Tooth paste = 5 Price of Tooth Brush = 1  Need…

Q: Emi’s available income each week for expenditures on food (F) and clothing (C) is $40. The price of…

A: 1)Within Emis consumption possibilities 5*2=10 3*10=30 10+30=40 It would lie on her budget line.

Q: Louis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost…

A: Total utility is the whole sense of fulfilment or happiness a consumer has after using a particular…

Q: Cathy has $240 to spend on cherry and/or coconuts. Suppose you have drawn her budget line for cherry…

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A: Given, Consumer's income = 200000 Price of an opera ticket = 150 Price of a rural tour = 500

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Q: Carol needs to decide how to spend her wealth on fish and chicken. For Carol, 1 lb of fish is…

A: Given, u(x; y) = 2x + y

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A: Utility function: The utility function is a key concept in economics that assesses preferences…

Q: 1. Would you expect marginal utility to rise or fall with additional consumption of a good? Why?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose you have $30 and you are going to rent some movies and buy some sodas.  Suppose movie…

A: Budget line: $30 = $6 x M + $1 x S  where M: Movies and S: Soda 30 = 6M + S When M = 0, S = 30…

Q: Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle…

A: Pw= $10 Pc= $10 M=100 P'w= 5 P'c= 20 M=100

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A: Marginal utility manifests the amount of utility derived from purchasing an extra unit of the good.…

Q: Suppose a consumer has a budget for fast-food items of $60 per week and spends this money on two…

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Q: Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all…

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Q: Janelle spends all of her income on songs from iTunes ($1 each) and apps ($5 each) for her iPhone.…

A: Real Income When referring to an individual's income, real revenue is the money earned after…

Q: 1. Isobel consumes positive quantities of both jam and juice. The price of jam is 5 cents per unit…

A: The addition to the total utility derived by an individual when he/she consumes an additional unit…

Q: Mike is a jellyfish wrangler.  In June and July he spent his budget on fish tanks and wet suits.…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: Suppose an individual is currently spending all of their income on a bundle of books and pizza, but…

A: Good marginal utility price in $ $ marginal utility Book 6 12 6/12 = 0.5 Pizza 3 7 3/7 = 0.43…

Q: A consumer who has spent all of her income on clothes and food and finds that her marginal-utility…

A: Answer: A purchasing more clothes and less food

Q: Given the data in the above table, if income is $16, and the price is $1 for a bottle of water and…

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Q: Suppose Amanda spends all of her income of $1,000 on mascara (M) and chocolate (C) The prices per…

A: income $1,000 The prices per unit are PM = $5 and PC = $10.

Q: Question 1 Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: Louis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost…

A: The information given is as follows:- Louis is trying to decide what combination of cups and plates…

Q: Charlie eats only pizzas and fruit salads which are discrete goods. Each pizza has 1000kcal, and…

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Q: Suppose Gregg consumes chocolate candy bars and oranges. He is given four candy bars and three…

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A: Consumer's income halves and price of both goods tripe

Q: Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing…

A: a. The budget is the summation of money with the individual with which the individual can make a…

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A: Demand for Inferior goods decline with an increase in income.

Q: 32/ Assume that a consumer has a given budget or income of $24 and that she can buy only two goods,…

A: Answer in step 2.

Q: Assume that a consumer has a given budget or income of $12 and that she can buy only two goods,…

A: Answer Opportunity cost of buying 1 more apple = units of bananas lost = Price of apple / Price of…

Q: Suppose that with a budget of $100, Deborah spends $60 on sushi and $40 on bagels when sushi costs…

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.