1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for lunch. As we know, he tends to consume 3 units of bread with every 2 units of ham. Suppose the price of goods are $2(X) and $7(Y) respectively. A. Write down Jason's utility function and budget constraint. B. Calculate Jason's optimal point. C. Show the optimal point in graph. We were unable to transcribe this image
- H u y | | | | - 2. Xin is a foodie and loves to spend all his money on food(x) and drinks(Y). As we know, the price of food and drinks are $8 and $3 per unit respectively. Please answer the following questions. A. Assume that Xin has 168 dollars, please write down his budget constraint and make a graph of it. Slope and intercepts have to be marked clearly. B. Xin's utility function is U =...
(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function: U (X, Y) = X°.270.3 Budget Constraint: I = XP, + YP, a. What is the consumer's marginal utility for X and for Y? b. Suppose the price of X is equal to 4 and the price of Y equal to 6. What is the utility maximizing proportion of X and Y in his consumption? {construct the budget constraint) c. If the total amount...
1- Suppose that a firm producing commodity with the following production function: Y = 20X,X2 Then, assume that the maximum amount the firm can spend on these two inputs is $100 and price of commodities are as follow: Xi = 4, X2 = 5 a. Use Lagrange Multiplier to determine the optimal production level at this firm. b. What is the meaning of shadow price? How you can interpret it using the solution of part a? 2- Assume the following...
1. (24 total points) Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also, the consumer has $72 to spend, and the price of Good X, PX = $4. Let Good Y be a composite good whose price is PY = $1. So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X. a) (2 points) How much X and Y...
Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the price of good y is $10. If Peter's income is $200, how many units of good x would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?
Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the price of good y is $10. If Peter's income is $200, how many units of good y would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?
Doreen has a utility function U(x, y) = 10x + 5y. The price of good x is $1, and the price of good y is $2. If Doreen's income is $100, how many units of good y would she consume if she chose the bundle that maximizes her utility subject to her budget constraint?
Question 9 Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the priče of good y is $10. If Peter's income is $200, how many units of good x would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?
Doreen has a utility function U(x, y) = 10x + 5y. The price of good x is $1, and the price of good y is $2. If Doreen's income is $100, how many units of good x would she consume if she chose the bundle that maximizes her utility subject to her budget constraint?