economics HW 2
1. the questions need only short answers.
2. do not copy from the websites. and no need to use the websites(do not use the websites)
3. you will find all the answers in the short videos link in each lecture. (for the example questions)
4. use the text book (I will upload it later for u)
5. do not copy from anywhere that have the answer. (Taking F if copied from others).
6. they are 4 lecture questions (each one has some questions need to answer).
Solution Preview
Outline for Lecture 9
Theory of Consumer Behavior
Utility-Maximizing Rule
According to the utility maximizing rule the consumer should ensure they get the utility worth of every dollar spent on a commodity. The application of this rule leads to a consumer equilibrium state where the margins balance out. This only works if wants, income, commodities and costs remain constant.
Numerical Example
Based on marginal utilities (from columns 2a and 3a) and product prices, report marginal utilities per dollar for apples and oranges for units 1 through 7?
Apples
First- marginal utility per dollar = marginal utility/price = 10utils/$1 = 10MU/$1
Second- marginal utility per dollar = marginal utility/price = 8utils/$1 = 8MU/$1
Third- marginal utility per dollar = marginal utility/price = 7utils/$1 = 7MU/$1
Forth- marginal utility per dollar = marginal utility/price = 6utils/$1 = 6MU/$1
Fifth- marginal utility per dollar = marginal utility/price = 5utils/$1 = 5MU/$1
(604 words)