In the economy of Libro, when 7 million yoga mats are produced each year, thecitizens of Libro are willing to give up 3 protein shakes to get one yoga matDraw a marginal benefit curve for the economy of Libro that is consistent with thisinformation. Label itWilingness to pay (protein shakes per yoga mat)10Draw an arrow along the marginal benefit curve to illustrate the change inmarginal benefit and change in the quantity of yoga mats as the quantity of yogamats produced increases10Yoga mats (milons per year)the objects specified in the question

The increased pleasure derived from completing an additional unit of an activity is known as a…

Answered: In the economy of Libro, when 7 million…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 3SQP

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A penurious graduate student has a food budget of $100.00/week. To survive with sufficient energy to attend classes, he knows that he needs to consume 50 protein units per week. The only two foods he can stand to eat on a regular basis are beans and hamburger. He derives twice as ich pleasure per protein unit from eating hamburger as he does from beans. a. Assume that hamburger costs $3.00 per protein unit and beans cost $1.00 per protein unit. Formulate the student's diet problem as a linear program. (You can assume he wants to maximize his "total utility" from his diet and that he gets I utile from each protein unit of beans he consumes and 2 utiles from each pro- tein unit of hamburger.) What is the optimal consumption of beans and ham- burger in this case? b. Plot the student's price-response curve for beans as the price of beans goes from $0.01 to $2.00, assuming that everything else (including the price of hamburger) stays constant. Note that his individual price-response…
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Discuss The intrinsic value of goods among the physiocrats.
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