Answer: (D) buy more ice cream and fewer cookies
Explanation: When a consumer spends all of his income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the consumer's total utility is maximized. Buying more of ice-cream gives the only combination that gives him the same marginal utility per dollar Bobby spends on cookies as on ice cream.
Marginal utility estimates the added satisfaction a consumer gets from consuming additional units of goods or services. It is used to determine how much of a product consumers are willing to purchase.
Explanation:
In the case of the complements goods, if the price of the soda rises, the demand would be decreased and the supply would rises. Since the soda and pizza are complementary goods so the impact of one good would be the same for another good also
Moreover, we also know that the price and the demand has an inverse relationship but the price and the supply has a direct relationship
Answer:
Both statements I and III are correct.
Explanation:
<u>1.Construct a zero investment portfolio that will yield a sure profit
</u>
<u>
</u>
<u>3.Make simultaneous trades in two markets without any net investments</u>
If Austin cannot pay the entire balance in full by the
due date of the return, he can choose any options. Such as installment
agreement request by submitting form 9465. This installment
agreement allows Austin to make a series of monthly payments over time. Another
choice is by paying IRS for a full pay agreement of up to 120 days. In this
option, no penalty fee for full payment; however, interest and any applicable
penalties continue to accrue until your liability is paid in full. Moreover,
Austin can <span>consider financing the full payment of his tax
liability through a credit card. The interest rate and any applicable fees
charged by a credit card company are usually lower than the combination of
interest and penalties set by the Internal Revenue Code.</span>
Answer:
1.63
Explanation:
The computation of the pricing elasticity of supply using the midpoint method is shown below:
= (change in quantity supplied ÷ average of quantity supplied) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity supplied would be
= Q2 - Q1
= 1,100 - 500
= 600
And, the average of quantity supplied is
= (1,100 + 500) ÷ 2
= 800
Change in price would be
= P2 - P1
= $0.80 - $0.50
= $0.30
And, average of price would be
= ($0.80 + $0.50) ÷ 2
= 0.65
So, after solving this, the price elasticity of supply is 1.63
