3. Harriet can consume goods X and Y. The graph below represents one of her indifference curves (IC). All her ICs are similar to the one in the graph, and prices are p, = 4 and p, = 4. If the Harriet's income is $80, her optimal choice is to consume Y4 IC 2 a. X = 8 b. X = 11 c. X = 4 d. X = 6 е. Х%3D 12
Q: My utility over goods 1 and 2 is given by: u(x1,x2)=min{x1/a,x2/b} Where x1is the quantity of…
A: Individuals and organizations strive for the highest amount of enjoyment from their economic…
Q: You are choosing between two goods, X and Y, and your MU from each is shown in the table below.…
A: Given Units of x MUx unit of y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3…
Q: Suppose we have a consumer with utility U(X,Y) = x2/5 y 3/5 What is X* and Y* if she has income M =…
A:
Q: 7. [5 points] Let a consumer's utility function be U(x, y) = VVg. The consumer's income is I = 3,…
A: (a) Let's start by setting up the utility maximization problem. We will do this for arbitrary values…
Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…
A: The ability of a good to fulfill human needs is demonstrated by its utility. The utility function…
Q: 4. Sompa consumes two goods (x and y) with a total income of GHS 20 and the price of the two goods…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume a household with a monthly income of $5,000. This household allocates its income to the…
A: a. The budget equation is 20F+150NF= 5000
Q: Solve this attachment.
A: Hi thanks for the question but as per the guidelines, we answer 3 parts at one time. Kindly repost…
Q: Consider a utility function u(x, y) = x*y, where 0 0. %3D 1. Derive the marginal utility of x and…
A: Answer - Thank you for submitting the question but , we are authorized to solved only 3 sub parts.…
Q: 4. We learned that the slope of the indifference curve is called the marginal rate of substitution…
A: The answer is as follows:-
Q: 11) An individual consumes only two goods, X and Y. Which of the following expressions represents…
A: A consumer becomes indifferent when two items are combined because they both provide the same level…
Q: An individual has utility function U(X, Y) = min{4X2, Y2). Find the expenditure function as a…
A: Note: Since you've asked multiple questions, we will solve the first question for you. If you want…
Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…
A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: Ed is a substitute lecturer. Every day he chooses between how many hours to work (denoted by L) and…
A:
Q: 1. Clara's utility function is a) Write an equation for Clara's indifference curve that goes through…
A: In economics, an indifference curve connects points on a graph representing different quantities of…
Q: PROBLEM You are choosing between two goods, X and Y, and your MU from each is shown in the table…
A: Marginal utility is the additional fulfillment a consumer gets from having another unit of a decent.…
Q: 13) An indifference curve is related to which of the following? A) Choices and preferences of…
A: The theory of utility maximization says that every individual focuses on utility maximization. This…
Q: Peter har this utility function 0,5 リ=x05 Where U is utility and x, and x, and the volume of goods 1…
A: "Consumer will buy commodities in order to maximize utility at a point where the ratio of marginal…
Q: The blue budget line is for an income of $1000, P=$5 and Py=$10. At point A. the person is evenly…
A: The budget line shows the various combinations of two goods that can be purchased with the given…
Q: Sam's utility function is x2 + y, her income is 3, the price of x is 2, and the price of y is 1. (a)…
A: a. Given the income, M = 3 Price of x, Px = 2 Quantity of x = x Price of y, Py = 1 Quantity of y = y…
Q: Suppose that I = 100, px = 1 and py = 2. How much of good x and good y will Amy optimally choose?…
A: 4) utility function is given by U (X, Y) = X^0.5 + Y I = 100, Px = 1, Py = 2 So budget line would be…
Q: Felipe consumes two goods, x and y. Their budget line at the beginning of the year had intercepts…
A: A budget line is the locus of different combinations of two goods that a consumer can purchase with…
Q: Consider a consumer with the utility function U(X,Y) = Xiyi and suppose that the prices of goods and…
A: Substitution effect is the change in demand due to prices which is caused by the effect of…
Q: Referring to the graph below (Figure 2) showing a consumer's initial budget line (labeled BO and new…
A: Given graph
Q: Following up on the preceding question, instead of assuming Ming has "standard-looking indifference…
A: A complementary good is a product or service that enhances the value of another product or service.…
Q: the price of Yoghurts increase to GHS10? d. Assume that prices are the same as used in part a. If…
A: d. Price of Yogurt = GHS 8 Price of Bread = GHS 2 MU of Yogurt = 20 MU of Bread = x For utility…
Q: Referring to the graph below (Figure 3) showing a consumer's initial budget line (labeled BO) and…
A: A budget line is used to explain the combination of two products that an individual can consume at…
Q: John has a utility function for goods x1 and x2 which is represented by u(x1,x2)=x10.2x20.8. Assume…
A: A. The Cobb-Douglas utility function is given as follows: U(x1, x2) = x1a x2b The optimal…
Q: Margaret consumes two commodities x and y. Her utility function is u(x, y) = min{3x, y}. The price…
A: The consumer chooses that bundle of good where his/ her indifference curve is tangent to the budget…
Q: uppose that Ahmed's income OR 2800, and he has to purchase two goods X and Y. The price of good X…
A: Income of Ahmed =OR 2800 Price of good X (Px) =OR 20 Price of good Y (Py) =OR 40
Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…
A: Hi! thanks for the question but as per the guidelines, we answer up to three subparts at one time.…
Q: 0.50.5 Adam's preferences are represented by the utility function u(x1, x2) = x?5x25. The prices of…
A: Answer: Given, Utility function: ux1,x2=x10.5x20.5Price of x1=p1Price of x2=p2Income=I (a). The…
Q: Carla has utility function U (x, y) = vx + 2y over goods x and y a) Do we have a name for this type…
A: Well-behaved preferences are those that are monotonic and convex. The equilibrium is established…
Q: 0.5 0.5 Suppose a consumer with a utility function U(x,y) =x the kilo and that their prices are…
A:
Q: 4. John has a utility for the quantity of sandwiches, Xs, and quantity of burgers, X, that he…
A: John consumes two goods sandwiches and burgers. John's utility function is a function of both…
Q: It is given that the price of goods X and Y are both Rs.10 each, a consumer consumes 10 units of X…
A: PCC (price consumption curve) is the locus of different optimal choices resulting due to change in…
Q: We know that a certain consumer spends on two goods, one of which is salts and the other one is a…
A: Engel curve shows relationship between income and quantity of good consumed.
Q: 1. Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py,…
A: In economics, "utility" refers to the sense of well-being that comes from using a product or…
Q: » Pauline spends her income in two goods: good r and good y. Her utility function is given by u(x,…
A: The utility of a combination of two goods will be maximized at the point where the budget constraint…
Q: Quantity X (unit) Quantity Y (unit) Ux (util) Uy (util) 1 1 15 12 2 2 26 21 3 35 27 4 4 41 32 5 5 45…
A: Given; Price of Good X= RM2 per unit Price of Good Y= RM1 per unit Income= RM13
Q: Bob has utility function U(x,y)=x²+y over goods x and y a) Do we have a name for this type of…
A: Consumer preferences for a collection of products and services are measured using the utility…
Q: PROBLEM You are choosing between two goods, X and Y, and your MU from each is shown in the table…
A: Px=2 py=1 P'x=1 I=9
Q: 3. Assume a person has a utility function U = XY, and money income of GH¢ 10,000, facing an initial…
A: Given; Utility function; U=XY Income; M= GHc 10000 Price of X= GHc 10 Price of Y= GHc 15 Increase in…
Q: 13. Sylvester has an income of $110 that he spends on two goods: X and Y. The price of a unit of Y…
A: Given; Income; M= $110 Price of Y= $5 Price of first four unit of X= $14 Price after fourth unit of…
Q: 2. A consumer spends her entire income on two goods, z and y. Her preferences are represented by the…
A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well…
I need 3 only please!!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Every day Noora spends her lunch money consuming apples, at RO1 each, and Oranges, at RO2 cach. At her current level of consumption, Noora's marginal utility of apples is 12 and her marginal utility of oranges is 18. If she has already spent all of her lunch honeyỹ, how should Noora change her consumption decision tó maximize utility? She should makeʼno changes: she is consuming the utility maximizing Combination ofapplès and oranges. 6) She should increase her apple consumption and decrease her consumption until the marginal utility per dollar is equal for bóth. c. She should decrease hef apple consumption and increase her orange consumpțion until the marginal utility per dollar is equal for both. d. She should increase her apple consumption and increase her orange consumption until the marginal utility is equal for both: orangeThe diagram shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam? 40 32 24 16 8. 8 12 16 20 24 Coffee (pounds per week) OA. 40 gallons of gasoline and 0 pounds of coffee. OB. 32 gallons of gasoline and 4 pounds of coffee. OC. 8 gallons of gasoline and 8 pounds of coffee. OD. 16 gallons of gasoline and 16 pounds of coffee. O E. All combinations except (D) are available to Sam. Gasoline (gallons per week)Five consumers have the following marginal utility ofapples and pears:Marginal Utilityof ApplesMarginal Utilityof PearsClaire 6 12Phil 6 6Haley 6 3Alex 3 6Luke 3 12The price of an apple is $1, and the price of a pear is$2. Which, if any, of these consumers are optimizingtheir choices of fruit? For those who are not, howshould they change their spending?
- . Matilda is downloading music and videos from an online site. She is currently buying three music downloads that cost $3 each and two video downloads that also cost $3 each. The table below indicates what she reports as the marginal utility of the last music download and of the last video download in this combination of purchases. Quantity Price per Download MU per download Music downloads 3 $3 60 Video downloads 2 $3 45 As an assignment for her Microeconomics course, Matilda used the marginal utilities that she gave to her 3rd music download and her 2nd video download to complete the Experiment Tally Sheet below. Her available budget was $19.00. Downloads of mu (score) from 1 to 100 Price of each $3.00 Money spent on Downloads of mu (score) from 1 to 100 Price of each $3.00 Money spent on Total Money Total Budget music mu mu/$ music videos mu mu/$ videos Spent Remaining 1st ? ?…26. Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) oniy sodas because they are iess expensive D) the combination that gives him the same marginai utility per doillar spent on pies as on soda5. Vera is an impoverished graduate student who has only $100 a month to spend on food. She has read in a government publication that she can assure an adequate diet by eating only peanut butter and carrots in the Öxed ratio of 2 pounds of peanut butter to 1 pound of carrots, so she decides to limit her diet to that regime. a) If peanut butter costs $4 per pound and carrots cost $2 per pound, how much can she eat during the month? b) Suppose peanut butter costs rise to $5 because of peanut subsidied introduced by a politically sensitive government. By how much will Vera have to reduce her food purchases? c) How much in food stamp aid would the government have to give Vera to compensate for the e§ects of peanut subsidy? d) Explain why Veraís preferences are of a very special type here. How would you graph them?
- The diagram shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam? 40 32 24 16 8 4 8. 12 16 20 24 Coffee (pounds per week) OA. 40 gallons of gasoline and 0 pounds of coffee. B. 32 gallons of gasoline and 4 pounds of coffee. OC. 8 gallons of gasoline and 8 pounds of coffee. OD. 16 gallons of gasoline and 16 pounds of coffee. OE. All combinations except (D) are available to Sam. Gasoline (gallons per week)4. Adam's income declines, and as a result, he buys more calamansi juice. Is calamansi juice an inferior or a normal good? What happens to Adam's deman curve for calamansi juice?3. Finding the optimal combination of two goods - $2. Suppose that Larry buys Larry enjoys consuming both cheese and fruit. Each pound of cheese costs Pc = $1, and each pound of fruit costs PF 300 pounds of cheese and 200 pounds of fruit per year. The following graphs show his marginal utility curves for cheese and fruit. At his current consumption level, Larry's marginal utility from consuming the last pound of cheese he bought is MUC S 30 utils per pound, and his marginal utility from consuming the last pound of fruit he bought is MUF = 30 utils per pound. 60 40 30 IL 20 10 400 500 600 50 40 A 30 B C D 20 10 0 0 100 Is Larry currently maximizing his utility? Combination 200 300 CHEESE (Pounds per year) 300, 30 (Pounds per Year) 200 400 300 No; he could buy less cheese and more fruit, not spend any more money, and be better off. O No; he likes fruit and cheese more than other goods, so he should buy more of both. O No; he could buy more cheese and less fruit, not spend any more money,…
- Raj consumes only cheese and crackers.a. Could cheese and crackers both be inferior goodsfor Raj? Explain.b. Suppose that cheese is a normal good for Rajwhile crackers are an inferior good. If the price ofcheese falls, what happens to Raj’s consumptionof crackers? What happens to his consumption ofcheese? ExplainAt her current level of consumption, Wiebke's marginal utility from an aditional pencil is 15 utils, and her marginal utility from an aditional pen is 10 utils. This implies that webkie's would be willing to give up at most ________ pencils for an additional pen.5. Max has $35 a day to spend on windsurfing and snorkeling and he can spend as much time as he likes doing them. The price of renting equipment for windsurfing is $10 an hour and for snorkeling is $5 an hour. The table shows the total utility Max gets from each activity. a Calculate Max's marginal utility from windsurfing at each number of hours per day. Does Max's marginal utility from windsurfing obey the principle of Hours per day 1 2 3 4 C. 5 6 Total utility from windsurfing 120 220 300 360 396 412 422 Total utility from snorkeling 40 76 106 128 140 150 158 diminishing marginal utility? b. Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility? Which does Max enjoy more: his 6th hour of windsurfing or his 6th hour of snorkeling?