question archive Managerial Economics: answer the following questions: 1
Managerial Economics: answer the following questions: 1
Subject:EconomicsPrice: Bought3
Managerial Economics: answer the following questions:
1. If a consumer’s income increases and if all goods are normal goods, explain how the quantity bought of each good changes.
2. Describe the following concepts: Utility, Total Utility, Marginal Utility and Paradox of value.
3. Jerry has $12 a week to spend on yogurt and magazines. The price of yogurt is $2, and the price of a magazine is $4:
a) List the combinations of yogurt and magazines that Jerry can afford. Draw a graph of Jerry’s budget line with the quantity of magazines plotted on the x-axis.b) Describe how Jerry’s consumption possibilities change if, other things remaining the same, (i) the price of a magazine falls and (ii) Jerry’s income increases.
4. Draw figures that show your indifference curves for the following pairs of goods:
? Right gloves and left gloves? Coca-Cola and Pepsi? Tylenol and acetaminophen (the generic formof Tylenol)? Desktop computers and laptop computers? Strawberries and ice cream
For each pair, are the goods perfect substitutes, perfect complements, substitutes, complements, or unrelated?
Specifications
Your assignment should be submitted in a Word document and follow proper APA formatting and a minimum of two pages in length. Proper APA formatting includes a title page, in-text citations, and a formal reference page. You can view more information and examples of sample papers in APA formatting at https://owl.english.purdue.edu/owl/resource/560/01/. (Links to an external site.)
