homework # 2 - 4c iv 5 The first graph shows that the price...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Dr. Popp AGEC 1103 5 February 2007 Homework #2 1. The marginal utility curve is negative because even though the total utility is increasing with each additional wing, it is decreasing at the rate rising. 2a. She will choose 12 cokes and 3 wings because of its higher utility. 2b. Robbin would choose D, 12 cokes and 6 wings because it lies on a higher utility curve. 2c. -6/6= -1 3e. Robbin does not care what combination of goods she buys because they all lie on the same utility curve therefore they all offer the same satisfaction. 4a. -5/4 4b.She is willing to give up 5 tacos in order to gain 4 hamburgers.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4c. iv 5. The first graph shows that the price of hamburgers increased and the price of tacos stayed the same, or income decreased. The second graph shows that the budget decreased or, the price of both tacos and hamburgers increased. The third graph shows that the price of hamburgers stayed the same while the price of tacos decreased. 6a. Engel’s curve 6b. We are willing to give up 3 cheap food units or every 1 environmental quality unit. 7c. 25 video games and 0 movies or 0 video games and 10 movies...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern