MGEA02H3 Study Guide - Quiz Guide: Demand Curve, Economic Surplus, Utility

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erinalligator902

31 Oct 2017

School

UTSC

Department

Economics for Management Studies

Course

MGEA02H3

Professor

Jack Parkinson

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MGEA02H3 Full Course Notes

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1-4 roy loves going on roller coaster rides at the amusement park. His utility function for rides is given by: U = 8x - 0. 1x2, 0 x 40 where x is measured in rides per day and u is measured in dollars. Questions 1 through 4 refer to this consumer, roy. Consumers will have the choice of (i) paying. . 00 a ride, or (ii) paying a flat fee of a day to go on as many rides as they want. If this deal is offered, roy will decide to: (a) pay the flat fee (b) pay . 00 per ride (c) neither of the above. Three individuals, cynthia, megan, and freda, make up the total demand for orange juice per month in a particular market. Cynthia"s demand curve is p = 500 - 0. 25qc. Megan"s demand curve for orange juice is given by 2p = 1000 - 0. 05qm. !1 given by qf = 3000 - 6p.

Related Questions

Jackson has $10, which he plans to allocate among three rides at the amusement park. Each ride on the Roller Coaster costs $3.00, on the Bumper Cars, $2.00, and on Splatter Mountain, $1.00. The Table below shows Jackson's utility schedule for the three rides. Given Jackson's budget constraint, what is the maximum utility he can receive from amusement park rides?

# OF RIDES	MARGINAL UTILITY FROM BUMPER CARS	MARGINAL UTILITY FROM SPLATTER MOUNTAIN	MARGINAL UTILITY FROM ROLLER COASTER
1	200	240	150
2	100	150	90
3	60	50	60
4	10	30	30
5	0	20	9
6	-72	10	0

A)We don't have enough information to answer this question.

B)300 utils

C)890 utils.

D)850 utils

E)550 utils

cyanant515

13. If the price of X is set at $24.00 per unit, the number of units of X purchased by this consumer each month will be: A) 1 B) 2 C) 3 D) 4 E) 5 F) 6 G) 7 H)8 1) 9 J) 10 K) 12 L) 14 M) 16 N) 18 0) 20 P) 22 Q) 24 R) 26 S) 28 T) 30 U) 36 V) 40 W) 44 X) 52 Y) 56 Z) none of the above

Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable) of each good is independent of the consumption rate of other goods.
The price of X and Y are respectively $40 and $60. Use the following table of total utilities to answer the following questions.

Good	Total utility X	Total utility Y
1	20	45
2	38	78
3	54	108
4	68	135
5	80	159
6	90	180

a. The marginal utility of the fourth unit of Y is__________.
b. The marginal utility of the fifth unit of X is___________.
c. The marginal utility per dollar spent on the third unit of X is__________.
d. The marginal utility per dollar spent on the second unit of Y is__________.
e. If the consumer has $420 to spend, ______ unit of X and _______units of Y maximize utility subject to the budget constraint. Explain.
f. If the consumer has $220 to spend, _______ units of X and_______ units of Y maximize utility subject to the budget constraint. Explain.
g. If the consumer wanted 4 units of X and 6 units of Y, what would have to be his/her budget constraint in order to maximize his/her utility? Explain.

sangrializard991

MGEA02H3 Study Guide - Quiz Guide: Demand Curve, Economic Surplus, Utility

MGEA02H3 Full Course Notes

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