{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Answers to chapter 7

Answers to chapter 7 - Solutions to End-of-Chapter...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Solutions to End-of-Chapter Exercises Chapter 7 [22] Section 7.1 [22.1]: Total and Marginal Utility 1.1 consumption, total utility (measured in 'utils') 1.2 3, less, greater 1.3 up arrow, down arrow 1.4 down arrow, down arrow Section 7.2 [22.2]: Consumer Choice 2.1 down arrow, up arrow, up arrow 2.2 up arrow, down arrow 2.3 up arrow, down arrow, down arrow, up arrow 2.4 $200/violin 2.5 decrease, increase 2.6 12, increase, decrease 2.7 marginal utility per dollar spent on movies, marginal utility per dollar spent on books 2.8 down arrow, down arrow, up arrow 2.9 Table Entries: 4, 5 a. beverage B b. switch to A 2.10 a. b. Channels – 12.5, 11, 10, 9, 8, 7 Games – 6, 8, 10 12, 18, 24 3 channels and 36 games would be chosen. Special note/errata If you are using the first printing of this book, the table that accompanies Exercise 2.10b looks like this: Quantity Marginal Utility Marginal Utility per Dollar Channels Games Channels Games Channels: Price = $4 Games Price = $1 1 44 6 50 2 40 8 44 3 36 10 40 4 32 12 36 5 28 18 32 61
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
62 Chapter 7 6 24 24 28 When assigning Exercise 2.10b, under the heading of “Marginal Utility,” switch the numbers that appear under Channels and Games so the table looks like this: Quantity Marginal Utility Marginal Utility per Dollar Channels Games Channels Games Channels: Price = $4 Games Price = $1 1 44 50 6 2 40 44 8 3 36 40 10 4 32 36 12 5 28 32 18 6 24 28 24 c.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}