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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 5
[Uses the Marginal Utility Approach] In Figure 1,we assumed that after Max's income rose,his marginal utility values for any given number of movies or concerts remained the same as before. But now suppose that when Max's income rises,and he can consume more movies and concerts,an additional movie has less value to Max than before. In particular,assume that Max's marginal utility values are as in the table below. Fill in the blanks for the missing values,and find Max's utility maximizing combination of concerts and movies. In Figure in the chapter,locate the new combination as a point on the $200 budget line. (It will not be one of the labeled points.)With these new marginal utility values,is one of the two goods inferior? Explain.
![[Uses the Marginal Utility Approach] In Figure 1,we assumed that after Max's income rose,his marginal utility values for any given number of movies or concerts remained the same as before. But now suppose that when Max's income rises,and he can consume more movies and concerts,an additional movie has less value to Max than before. In particular,assume that Max's marginal utility values are as in the table below. Fill in the blanks for the missing values,and find Max's utility maximizing combination of concerts and movies. In Figure in the chapter,locate the new combination as a point on the $200 budget line. (It will not be one of the labeled points.)With these new marginal utility values,is one of the two goods inferior? Explain. Figure 1](https://storage.examlex.com/SM3044/11eb872f_ac0d_5666_a220_15680d605e8f_SM3044_00.jpg)
Figure 1
![[Uses the Marginal Utility Approach] In Figure 1,we assumed that after Max's income rose,his marginal utility values for any given number of movies or concerts remained the same as before. But now suppose that when Max's income rises,and he can consume more movies and concerts,an additional movie has less value to Max than before. In particular,assume that Max's marginal utility values are as in the table below. Fill in the blanks for the missing values,and find Max's utility maximizing combination of concerts and movies. In Figure in the chapter,locate the new combination as a point on the $200 budget line. (It will not be one of the labeled points.)With these new marginal utility values,is one of the two goods inferior? Explain. Figure 1](https://storage.examlex.com/SM3044/11eb872f_ac0d_5667_a220_a16c8017ece5_SM3044_00.jpg)
Figure 1 Explanation
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Data related to the change in the utilit...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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