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fiasKO [112]
2 years ago
6

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is

8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium
Business
1 answer:
allsm [11]2 years ago
6 0

Complete question:

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium

a. $8 and $12

b. $6 and $4

c. $16 and $9

d. $4 and $6

Answer:

$6 and $4  set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.

Explanation:

Given,

The marginal utility of the last unit of apples consumed = 12

The marginal utility of the last unit of bananas consumed = 8

Now ,

To find :

The market level for apples and bananas, respectively, will be compatible with the consumer's equilibrium:

= \frac{12}{3} = $6

= \frac{8}{2} = $4

$6 and $4  set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.

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1 year ago
Consider the following statement: "An increase in supply decreases the equilibrium price. The decrease in price increases demand
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Answer:

A

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When it is said that demand or supply increase or decrease is because one of those or both shifts to left or to right. But this happens only when factors different from prices have changed. The problem does not specify what changes the supply, but it says that "increases" then, we understand that there is a shift to the right of the supply curve. If the demand curve remains constant, then the equilibrium price will decrease, and the equilibrium quantity will increase. So, the statement is partially true at the beginning, but the second part is false.

8 0
1 year ago
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Your father helped you start saving $20 a month beginning on your fifth birthday. He always made you deposit the money into your
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Explanation:

Given that

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Using Future value if annuity due formula:

F = C × (1+r) × [{(1+r) ^n - 1 } ÷ r ]

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Now

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