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Using your answer to Problem F-8, draw Sue's demand curve for soft drinks.

Short Answer

Expert verified

The demand curve is shown

Step by step solution

01

Given Information

the demand curve is a realistic portrayal of the connection between item cost and the amount of the item requested. It is drawn with the cost on the upward hub of the diagram and the amount requested on the flat hub.

02

Explanation

The demand curve is shown,

This is on the grounds that, with the lessening in cost from $2to$1, individuals will be interested in soft drinks. Since this shows a backwards connection between cost and amount requested, it very well may be portrayed with the negative incline line, this line is called request bend.

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Most popular questions from this chapter

If the fee charged to a client for legal service is $800per hour and the marginal utility from that service is 1,600units of additional utility, what is the client's hourly marginal utility per dollar for other purchased items?

You determine that your daily consumption of soft drinks is 3and your daily consumption of tacos is 4when the prices per unit are 50cents and $1, respectively. Explain what happens to your consumption bundle, and, after your consumption choices adjust, to the marginal utility of soft drinks and the marginal utility of tacos, when the price of soft drinks rises to 75cents.

Take a look at Figure 20-1. Suppose that the individual currently consumes 5 digital apps. What happens to the person's total utility if he were to reduce his consumption to 4 units? Why does this fact imply that the marginal utility curve cuts through the horizontal axis of the panel (c) between the fourth and fifth app consumed?

Consider the movements that take place from one point to the next ( Ato Bto Cand so on) along the total utility curve as the individual successively increases consumption by one more unit, and answer the questions that follow.

a. Which one-unit increase in consumption from one point to the next along the total utility curve gencrates the highest marginal utility?

b. Which one-unit increase in consumption from one point to the next along the total utility curve gencrates zero marginal utility?

c. Which one-unit increase in consumption from one point to the next along the total utility curve generates negative marginal utility?

Distinguish between total and marginal utility and discuss why marginal utility ultimately falls as a person consumes more of an item.

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