chap005 - 50 = a. 5-1 @ 7 D b. =* c. d. ? + Q a. b. c. d....

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5 & 0 ¤‹ = · a. 5-1 @ ë ¡D 7@ b. ·ª* c. d. ? + Q a. 5-2 @ b. + ê ¡ D @ c. b 7 @ ë ¡D d. e. . b · a. 5-3 + ê ¡D @ b. · ª c. · ª* d. · ª* €Q a. 5-4 · ª* b. Y · ª* á å + `m c. Y · ª* á å + `m d. @ ë ¡D 7 @ e. · · a. @ 5-5 b. ª c. ? ( + d. @ e. a. ðQ¸ 5-6 b. Y ª* áå +H q c. q ( + €¬=·ª d. @ e. @ë¡D 7 @ a. @ (- )- 5-7 •Q b. ? ( + c. Y ª* áå +`m d. e. . b q ( + €¬= · ª*ð 5-8 - 2 - X - 8 - Y ª* 4 - X - 2 - Y. ª Then a. " ª * 3 . Y . X.. 1 . Chapter 5 : THEORY OF CONSUMER BEHAVIOR 67
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b. R 1 . Y . X . 3 c. . X . Y ª 3. d. . c b . c a. 5-9) ª*áå+ 400 ( + 𠸪*ð? È 5 ª ,- The last ounce of caviar added 100 units to Alexandra's total utility, while the last bottle of champagne added 75 units. R 4 R 8 b. * 150 . c. * 150 . d. * 100 . e. * 100 . ½ * 50 . . 2 M U 1 N B A Y L X U 2 Q u a n t i t y o f g o o d X Q uantity of good Y a. - ML - MN è + 5-10 - b. X ª* c. . X d. Y ª* e. . Y ? è ( + 5-11 a. . X . Y ½ ª * B b. X . Y ˜ B. . c. È B. . d. . c e †¸ª* 5-12 ª* a ª* áå + Hq m 68
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b. 0 è+ ( ¾ ª c. m + ê ¡D@ ë d. ? ª*á å+H q+ e ª* . X - Y P Þ ˆª 2- 5-13- X - 3 - Y - 1 P * (P * a. . 1X . 2 Y 0 bc 3 Y . 1X. c * X . Y. d. 0 Þ X . Y. @ ë ¡D 7@ 5-14P a. ( 1 ( + Þ ˆ¸ª*ð b. ª * áå+H q+ c. 1 ( + Þ ˆ ¸ª*ð ? d. b . c e ª * 5-15 ( + À¾ ¸ª*ð 50 ( + 20 - 20 - ,- 2 - - If the last hamburger and the last hot dog both added 50 units to Ronald's total utility, he a. . ( ¾ R b. 1 3m 6 s R c. 1 3m 6 s R d. k R vdm 6 H m6 e. c . d . 3 Y 6 0 X 3 0 0 1 2 0 B A U 1 U 2 2 0 0 2 6 2 0 U 3 C U n i t s o f g o o d X U nits of good Y Y . 10 . Chapter 5 : THEORY OF CONSUMER BEHAVIOR 69
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5-16 X - 5 X - Y - ( a. 80X. 20 Y b. 120X. 620 Y c. 120X. 250 Y d. 200X. 620 Y e R . C - X - Y - 5-17- a. 5 b. 2 c. 0.5 d. 0.3 e R a. ` X ? 3m 6 5-18 - b. 2 . 300 . c. 3 . 120 . d. 5 . 120 . e. . b c . d . 4 ` Qua ntity of X  Quantity of Y 30 56 100  II  80  x+ ‚“* 800 . 6 ¸ª* X - Y - 5-19- a. X P = $10, Y P = $8 b. X P = $8, Y P = $10 c. X P = $100, Y P = $80 d. X P = $20, Y P = $60 e. X P = $60, Y P = $20 ? 3m 6 5-20 - 70
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a. 1.5 b. 2 c. 2.5 d. 0.8 e. . A - 30X - 56 Y ` 5-21 - a. MRS is less than X X P P . b. MRS is greater than X Y P P . c. X MU is greater than Y MU . d. X X MU P is less than Y Y MU P . . B 5-22 - a. 1 è ( m6 R Y X. b. Y Ý ˆ R X Ý ˆ R The marginal utility per dollar spent on Y exceeds the marginal utility per dollar spent on X . both a and c both b and c a. b. shows how the utility - maximizing choice of X changes as the price of X changes. c. d. shows that the income effect is always negative. e. f. both a and c What will happen? The consumer's purchasing power will increase.
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This note was uploaded on 07/07/2010 for the course MGE 302 taught by Professor Isse during the Summer '08 term at SUNY Buffalo.

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chap005 - 50 = a. 5-1 @ 7 D b. =* c. d. ? + Q a. b. c. d....

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