JAPN 100 Study Guide - Japanese Language, L118 Light Gun, General Motors 122 Engine
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PLEASE FIND SOLUTIONS TO WHERE QUESTION MARKS ARE INDICATED AND SOLVE THE FORMULA AT BOTTOM
Columns 1 through 4 in the accompanying table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the price of good A is $9.00, the price of good B is $3.00, the price of good C is $2.00 and the price of good D is $12.00. Ricardo's income is $53.00.
Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |||||
Units of Good A | MU | Units of Good B | MU | Units of Good C | MU | Units of Good D | MU | Number of Dollars Saved | MU |
1 | 72 | 1 | 24 | 1 | 15 | 1 | 36 | 1 | 5.00 |
2 | 54 | 2 | 15 | 2 | 12 | 2 | 30 | 2 | 4.00 |
3 | 45 | 3 | 12 | 3 | 8 | 3 | 24 | 3 | 3.00 |
4 | 36 | 4 | 9 | 4 | 7 | 4 | 18 | 4 | 2.00 |
5 | 27 | 5 | 7 | 5 | 5 | 5 | 13 | 5 | 1.00 |
6 | 18 | 6 | 5 | 6 | 4 | 6 | 7 | 6 | 0.50 |
7 | 15 | 7 | 2 | 7 | 3.5 | 7 | 4 | 7 | 0.25 |
8 | 12 | 8 | 1 | 8 | 3 | 8 | 2 | 8 | 0.13 |
What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?
Price of good A: $9.00, Units of A: ????
Price of good B: $3.00, Units of B: ?????
Price of good C: $2.00, Units of C: ????
Price of good D: $12.00, Units of D: ????
b. How many dollars will Ricardo choose to save? $?????
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.
( $ Ã ) + ( $ Ã ) + ( $ Ã ) + ( $ Ã ) + $ = $
On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good.
Individual A Individual B Individual C
Price | Qd | Price | Qd | Price | Qd |
8 | 0 | 8 | 1 | 8 | 0 |
7 | 0 | 7 | 2 | 7 | 0 |
6 | 0 | 6 | 3 | 6 | 1 |
5 | 1 | 5 | 4 | 5 | 2 |
4 | 2 | 4 | 5 | 4 | 3 |
3 | 3 | 3 | 6 | 3 | 4 |
2 | 4 | 2 | 7 | 2 | 5 |
1 | 5 | 1 | 8 | 1 | 6 |