Table : Alpo McBurgers
1 answer:
Answer:
b. 3 McBurgers and 2 cans of Alpo
Explanation:
If the goal is to maximize utility, Ms. Tightwad should look into purchasing the combination that yields the highest utility.
a. 4 McBurgers, 0 Alpo cans:
b. 3 McBurgers, 2 Alpo cans:
c. 2 McBurgers, 4 Alpo cans:
d. 1 McBurger, 6 Alpo cans (assume marginal utility stays constant after the 4th can):
Since option b. yields the highest utility, she should buy 3 McBurgers and 2 cans of Alpo
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Answer:
D. the price level is likely to rise as GDP rises.
Explanation:
The aggregate demand measures all the goods produced in an economy at a given price in a particular period.
When the aggregate demand increases, the aggregate demand curve shifts to the right. When aggregate demand increases, aggregate demand exceeds aggregate supply and aggregate price and output would increase.
Answer: $1,203.49
Explanation:
The equal contributions will be an annuity. The $3,500 already there will also grow at 6% for 3 years. Expression is;
8,000 = ( 3,500 * ( 1 + 6%)^3) + Contribution * Future value interest factor of annuity, 3 years, 6%
8,000 = 4,168.56 + Contribution * 3.1836
Contribution = (8,000 - 4,168.56) / 3.1836
Contribution = $1,203.49
