Suppose Jane has $100$100 and is going to have a birthday party. She wants to order pizza and sushi. The price of a pizza is $6$6, and the price of one package of sushi is $8$8. Considering that she decided to spend $60$60 on pizza, how many pizzas and packages of sushi can Jane order? Enter your answer in the box below and round down to the nearest whole number if necessary; rounding your answer up may cause Jane to exceed her budget.
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Suppose Jane has $100$100 and is going to have a birthday party. She wants to order pizza and sushi. The
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- Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake is $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake? Cups of Coffee 1 2 3 4 5 6 Utility from Consumption Pieces of Cake 1 2 3 4 5 6 A B C D Total Utility from Cups of Coffee 33 56 79 Total Utility from Pieces of Cake 15 32 48 63 77 90 Total Utility of Different Consumption Bundles Consumption Bundle Cups of Coffee Pieces of Cake Total Utility 3 0 2 2 1 4 0 6Use the following information to answer questions 1 through 8: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas, which cost $4 each. What is the largest number of burritos that the student could afford to purchase in one month? What is the largest number of sodas the student could afford to purchase in one month?Brenda wants to buy new car and has a budget of $25,000. She has just found a magazine that assigns each car an index for styling and an index for gas mileage. Each index runs from 1 to 10, with 10 representing either the most styling or best gas mileage. While looking at the list of cars, Brenda observes that on average, as the style index increases by one unit, the price of the car increases by $6,250. She also observed that as the gas-mileage index rises by one unit, the price of the car increases by $5,000. Illustrate the various combinations of style (S) and gas mileage (G) that Brenda could select with her $25,000 budget. Using the line drawing tool, illustrate Brenda's budget line. Label this line 'Budget Line'. Carefully follow the instructions above, and only draw the required object. Suppose Brenda's preferences are such that she always receives two times as much satisfaction from an extra unit of styling as she does from gas mileage. What type of car will Brenda choose?…
- Suppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?EXERCISE 6 If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10 notebooks. If she spends only half of her budget, she could only buy a set of groceries and could not afford any notebooks. Suppose Ginna's budget is £150. Her preferences for groceries (G) and notebooks (N) can be described by the following utility function: U(G, N) = 30G + 2N (MUG = 30, MUN = 2). a) Find Ginna's optimal consumption bundle. Provide both algebraic and graphical solution. Explain your reasoning. b) Discuss how the price of a notebook should change for Ginna to change her optimal consumption choice. c) If the price of a notebook increases by 50%, how should the price of the groceries drop so that Ginna can be as well off as before this change in prices? d) Discuss the implications of the price change from c) on Ginna's optimal choice. In your discussion, include the analysis of the substitution and income effects as well as Ginna's demand for groceries and/or notebooks.Consider the figures to the right. Suppose that the individual currently consumes 5 digital apps. What happens to the person's total utility if they reduce their consumption to 4 units? Why does this fact imply that the marginal utility curve cuts through the horizontal axis of the lower figure between the fourth and fifth app consumed? Reducing consumption to 4 apps from 5 apps leaves total utility at utils in the upper , which is the figure. Hence, the marginal utility between these two quantities of apps equals value of the axis in the lower figure. Thus, the marginal utility curve crosses the axis of the lower figure between units 4 and 5. (Enter your responses as whole numbers.) Marginal Utility (utils per week) 6- 4- 22 Total Utility (utils + q r per week) 14- 12- 10- 20 ø Ø 18- 04 0 Downloaded Digital Apps Utilized per Week Downloaded Digital Apps Utilized per Week G Q
- Megan likes to eat toast with hazelnut spread and drink wine. She enjoys these items in very specific proportions: For every piece of toast with hazelnut spread she eats, she drinks exactly one glass of wine, and vice versa. Megan can purchase the hazelnut spread for her toast in two jar sizes: 20 ounces and 40 ounces. Megan cares only about the total amount of hazelnut spread she has available and not at all about the jar size. In other words, she's just as happy with two 20-ounce jars as she is with one 40-ounce jar. In this scenario, toast with hazelnut spread and glasses of wine are Two possible bundles of toast with hazelnut spread and glasses of wine are shown on the following graph, labeled A and B. Using three purple points (diamond symbol), plot Megan's indifference curve that passes through point A (11). Then, using three orange points (square symbol), plot Megan's indifference curve that passes through point B (I2). Hint: To plot both indifference curves, place one point on…Xavier has preferences between food eaten today and food eaten tomorrow of the form. U(today, tomorrow) = 0.51 * ln(today) + 0.49 * ln(tomorrow) He has $100,000 to spend. Food today costs $20 per pound; food tomorrow costs $19 per pound. 9. How many pounds of food does he consume today? 10. How many pounds of food does he consume tomorrow? (Please evaluate to get number values as solution)Jackie has a budget of $36 per month to spend on snacks. She can spend this budget on bags of potato chips (C) and Hershey chocolate bars (H). Potato chips cost $4 per bag, while Hershey bars cost $1 per bar. The utility that Jackie receives from consuming potato chips and Hershey bars is represented by the following utility function: U=3C2 H. Given that Jackie seeks to maximize her utility, find the number of potato chip bags and Hershey chocolate bars that Jackie will purchase each month.
- 10.6 For every two boxes of strawberries that she consumes, Millicent insists on having one pitcher of cream. She does not, however, insist on consuming the same amount every week. Her utility function is U = min{$₁,2c₁}min{$2,2c2} where s₁ and s2 are the number of boxes of strawberries she consumes this week and next week and c₁ and c₂ are the number of pitchers of cream she consumes this week and next. Strawberries cost $2 a box and cream costs $1 a pitcher. She has a present value of $100 to spend on these goods in the next two weeks. The weekly interest rate is 1%. How many boxes of strawberries will she consume this week? (a) 10 (b) 20 (c) 22 (d) 14.1 (e) 6.06If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10 notebooks. If she spends only half of her budget, she could only buy a set of groceries and could not afford any notebooks. Suppose Ginna's budget is £150. Her preferences for groceries (G) and notebooks (N) can be described by the following utility function: U (G, N) = 30G + 2N (MUG = 30, MUN = 2). a) Find Ginna's optimal consumption bundle. Provide both algebraic and graphical solution. Explain your reasoning. b) Discuss how the price of a notebook should change for Ginna to change her optimal consumption choice. c) If the price of a notebook increases by 50%, how should the price of the groceries drop so that Ginna can be as well off as before this change in prices? d) Discuss the implications of the price change from c) on Ginna's optimal choice. In your discussion, include the analysis of the substitution and income effects as well as Ginna's demand for groceries and/or notebooks.Max is very peculiar about his morning coffee routine. He likes to use exactly two spoons of coffee for every six ounces of water. This give him the following utility function: U = min(2Water, 6Cof fee), where Water (W) is measured in fluid ounces and Coffee (C) in spoons. (a) afford while utility-maximizing? How many spoons of coffee does he use in doing so? (b) If he spends exactly $2 on coffee every morning, how many 8 ounce cups of coffee can he How much utility does Max get from his morning cup/s of coffee?