Ans) without changing the combined.......... More CDs and less DVDs
Marginal utility of CDs per dollar = 180/16 = 11.25
Marginal utility of DVDs per dollar = 212/22 = 9.64
Since marginal utility of CDs per dollar exceeds marginal utility of DVDs per dollar so more CDs and less DVDs should be consumed.
Assume the price of CDs is $16 and the price of DVDs is $22. At those...
The price of DVDs (D) is $20 and the price of CDs (C) is $10. Philip has a budget of $100 to spend on the two goods. Suppose he has already bought one DVD and one CD. In addition, there are 3 more DVDs and 5 more CDs he would like to buy. a. Given the above prices and income, draw his budget line on a graph with CDs on the horizontal axis and correctly identify where is current market...
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Assume that Clark spends his entire income on the purchase of two goods, X and Y. If his income and the prices of good X and Y all double, Clark will double the purchase of goods X and Y buy more of good X and less of good Y buy less of good X and more of good Y buy less of both goods X and Y buy the same amounts of goods X and Y According to the law...
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Marginal utility refers to 16. a. the total satisfaction derived from all the units of the product consumed. b. the satisfaction that an individual receives from consuming a product. c. the change in satisfaction resulting from consuming one more unit or one less unit of the product. the dissatisfaction that is derived from not using an additional unit of the product. d. 17. For a given market price, Jane can increase her total utility by adding to her purchases of...
this is a microeconomics question
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Suppose Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last cup of tea was 24 units of utility and that of his last crumpet was 6 units of utility, which of the following is true? The price of tea is six times the price of crumpets The price of crumpets is four times the price of tea The price of tea and crumpets are equal The price of tea is four times...