Sarah’s utilities from consumption of two goods, hummus and falafel, are shown in the table below. Sarah’s daily income is $23 and she spends her entire income on these two goods. Assume the price of hummus (PH) is $2 and the price of falafel (PF) is $5. Ounces of Hummus Total Utility from Hummus MUH MUH/PH Pieces of falafel Total Utility from falafel MUF MUF/PF 1 10 1 20 2 18 2 35 3 24 3 45 4 28 4 50 5 30 5 52 a. Fill in the columns. (4 marks) b. What is Sarah’s equilibrium consumption of hummus and falafel? What is her marginal utility per dollar spent on each good? (2 marks) c. If Sarah’s income increases to $30, what will be her new equilibrium consumption of hummus and falafel be? What will the marginal utility per dollar spent on each good be? (2 marks) d. For Sarah, is hummusSarah’s utilities from consumption of two goods, hummus and falafel, are shown in the table below. Sarah’s daily income is $23 and she spends her entire income on these two goods. Assume the price of hummus (PH) is $2 and the price of falafel (PF) is $5. Ounces of Hummus Total Utility from Hummus MUH MUH/PH Pieces of falafel Total Utility from falafel MUF MUF/PF 1 10 1 20 2 18 2 35 3 24 3 45 4 28 4 50 5 30 5 52 a. Fill in the columns. (4 marks) b. What is Sarah’s equilibrium consumption of hummus and falafel? What is her marginal utility per dollar spent on each good? (2 marks) c. If Sarah’s income increases to $30, what will be her new equilibrium consumption of hummus and falafel be? What will the marginal utility per dollar spent on each good be? (2 marks) d. For Sarah, is hummus a normal or inferior good? How about falafel – is it a normal or inferior a normal or inferior good? How about falafel – is it a normal or inferior
September 3, 2020
Frosty Cola’s chief operating officer is very interested in finding out about the averageproductivity of the company’s workers.Institutional research…
September 3, 2020
  • How much revenue will the business have to earn in order to break even in terms of business profit?
  • How much revenue will the business have to earn in order to break even in economic terms?
  • Suppose that Sarah buys the building. Now how much will the business have to earn in order to break even in economic terms?
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