This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not ... (Read 42 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jul 1, 2018
If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not maximizing utility. True or false. Explain.
 
  What will be an ideal response?

Question 2

Refer to Scenario 2.1. If P = 15, which of the following is true?
 
  A) Quantity supplied is greater than quantity demanded.
  B) Quantity supplied is less than quantity demanded.
  C) Quantity supplied equals quantity demanded.
  D) There is a surplus.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 1, 2018
Answer to Question 1

True, when the consumer has maximized utility, the marginal utility per dollar spent on each good purchased will be equal, and the consumer will be on her budget line. In this case, the consumer should consume more a and less b.

Answer to Question 2

B


CQXA

  • Member
  • Posts: 546
Reply 2 on: Jul 1, 2018
:D TYSM

lindahyatt42

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Consuming Lithosphere at Convergent Plate Boundaries Consuming Lithosphere at Convergent Plate Boundaries
As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
The impact of climate change is greater in some areas than in others The impact of climate change is greater in some areas than in others
The Food Label Provides Valuable Consumer Information Manufacturers must adhere to strict labeling The Food Label Provides Valuable Consumer Information Manufacturers must adhere to strict labeling
A hypothesis test is performed to test the claim that a population proportion is greater than ... A hypothesis test is performed to test the claim that a population proportion is greater than ...
Video: Gastrulation: cross section of the frog

For a complete list of videos, visit our video library