Homework Answers
Jen's budget constraint: Pc.C+PB.B=M
PC=price of coffee; C=quantity of coffee; PB=price of bagels; B=quantity of bagels; M= income
a) budget constraint= 2C+B=12
At these prices, Jen's optimal bundle is 4 units of coffee and 4 units of bagels.
Hence, 2*4+1*4= 8+4=12
Her total utility= 34+21= 55
b) budget constraint=2C+2B=12
At theses prices, Jen's optimal bundle is 3 units of coffee and 3 units of bagels.
Hence, 2*3+2*3= 6+6=12
Her total utility= 27+18= 45
c) budget constraint= 2C+2B=20
At these prices, Jen's optimal bundle is 5 units of coffee and 5 units of bagels.
Hence, 2*5+2*5= 10+10= 20
Her total utility= 40+23= 63
Add Answer to:
10.1 Utility Maximization Question Fday, Ap 313es PM Each week, Jen likes to drink coffee and...
10.1 Utility Maximization Question Friday, Aprl 21, 3017 03 PM Each week, Jen likes to drink coffee and eat bagels i...
10.1 Utility Maximization Question Friday, Aprl 21, 3017 03 PM Each week, Jen likes to drink coffee and eat bagels in the morning either at work or at home on the weekends. Figure 1 lists the total utility that she receives at each quantity of cups of coffee and bagels, respectively. Additionally, Jen has a weekly budget of $12 to spend on consuming cups of coffee and bagels (and she always spends her whole coffee/bagel budget otherwise she gets grumpy!)....
Juanita enjoys consuming both soda and coffee. Each can of soda costs Ps - $1, and...
Juanita enjoys consuming both soda and coffee. Each can of soda costs Ps - $1, and each cup of coffee costs Po-$2. Suppose that Juanita buys 30 cans of soda and 20 cups of coffee per week. The following graphs show her marginal utility curves for soda and coffee. At her current consumption level, Santa's marginal utility from consuming the last can of soda she bought is MUs - 12 utils per can, and her marginal utility from consuming the...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(RC)-Rº4CO6 where...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(RC)-Rº4CO6 where R is the number of DVD rentals and C is cups of coffee. Malachi has $30 in his pocket right now, and he plans to spend all of the money on rentals and coffee today. a. The price of one rental is $3 and the price of one cup of coffee is $2 per cup. Solve for the optimal bundle. b. Suppose that Malachi...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(R,C)=R0.4C0.6 where...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(R,C)=R0.4C0.6 where R is the number of DVD rentals and C is cups of coffee. Malachi has $30 in his pocket right now, and he plans to spend all of the money on rentals and coffee today. a. The price of one rental is $3 and the price of one cup of coffee is $2 per cup. Solve for the optimal bundle. b. Suppose that Malachi...
5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and PN...
5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and PN $4. The table shows Seema's marginal utility. The utility-maximizing bundle is C _and N_ Quantity 1 23 4 5 6 7 8 Quantity 1 2 3 4 5 6 7 8 20 12 8 4 00-10 -20 10 8 6 4 2 0-24 Nuts Coffee Refer to Question 5 from the practice set you solved in tutorial today with the help of your TA...
2 Perfect substitutes Consider an agent with perfectly substitutable utility over R The agent has total...
2 Perfect substitutes Consider an agent with perfectly substitutable utility over R The agent has total wealth w>0 1. Suppose the agent faces linear prices and that P1くPi for every i > 1, what is the agent's optimal consumption bundle? What fraction of her wealth does she spend on each good? Show that the tangency conditions for optimality are satisfed for the bundle you've found. 2. Suppose instead she faces the same linear price for every good. Describe the set...
2. Karen likes to consume sandwiches and brownies. Her daily utility from consuming different quantities of...
2. Karen likes to consume sandwiches and brownies. Her daily utility from consuming different quantities of sandwiches and brownies is given in the following table: Mus/ Pg Mug/Pe Mus Brownies Mls Sandwiches TUs TUB 0 0 0 0 39 (-9 37 34(G 35 33 31 29 21 25 23 1 39 1 19 38 13 12.33 i1:67 1-o 2 76 72 1-1 111 102 128 30 26 22 144 4 13 5 175 5 150 10.3 9.67 6 6 204...
Question Kayla's utility depends on her consumption of good 1(Q1) and good 2 (Q2), and it...
Question Kayla's utility depends on her consumption of good 1(Q1) and good 2 (Q2), and it is described by the following utility function: U(Q), Q2 ) = 27 Q7'3 Q3 Deriving Demand functions 1. What are her uncompensated demand functions (Marshallian demand function) for Q1 and Q2? 2. What are her compensated demand functions (Hicksian demand function) for Q1 and Q2? Effects of a price increase (substitution, income, and total effects) Her income is currently $360. Consider that the price...
Utility Max.docx Page 3 of 3 Yaomin is an aficionado of the true baseball experience. Every week during 2....
Utility Max.docx Page 3 of 3 Yaomin is an aficionado of the true baseball experience. Every week during 2. baseball season, he budgets $128 for the game and hot dogs. Assume the price of a hot dog is $2.00 and the price of a baseball game is $60.00. Given the information below about Yaomin's preferences for hot dogs and baseball games, determine his optimal choice of games and hot dogs for each week of the baseball season. Show your work....
1. Sketch indifference curves for each of the following consumers for a day’s worth of coffee...
1. Sketch indifference curves for each of the following consumers for a day’s worth of coffee and food, and describe why the indifference curves take the shape they do. Draw the indifference curves as how they would look if the drank a range of 0 to 4 cups. a. Ron treats coffee and food as ordinary goods, but is neutral to coffee beyond 3 cups. b. For Gareth, food is always an ordinary good where more is better; however, coffee...
10.1 Utility Maximization Question Friday, Aprl 21, 3017 03 PM Each week, Jen likes to drink coffee and eat bagels in the morning either at work or at home on the weekends. Figure 1 lists the total utility that she receives at each quantity of cups of coffee and bagels, respectively. Additionally, Jen has a weekly budget of $12 to spend on consuming cups of coffee and bagels (and she always spends her whole coffee/bagel budget otherwise she gets grumpy!)....
Juanita enjoys consuming both soda and coffee. Each can of soda costs Ps - $1, and each cup of coffee costs Po-$2. Suppose that Juanita buys 30 cans of soda and 20 cups of coffee per week. The following graphs show her marginal utility curves for soda and coffee. At her current consumption level, Santa's marginal utility from consuming the last can of soda she bought is MUs - 12 utils per can, and her marginal utility from consuming the...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(RC)-Rº4CO6 where R is the number of DVD rentals and C is cups of coffee. Malachi has $30 in his pocket right now, and he plans to spend all of the money on rentals and coffee today. a. The price of one rental is $3 and the price of one cup of coffee is $2 per cup. Solve for the optimal bundle. b. Suppose that Malachi...
4. Malachi only consumes 2 goods: DVD rentals and coffee. His utility function is U(R,C)=R0.4C0.6 where R is the number of DVD rentals and C is cups of coffee. Malachi has $30 in his pocket right now, and he plans to spend all of the money on rentals and coffee today. a. The price of one rental is $3 and the price of one cup of coffee is $2 per cup. Solve for the optimal bundle. b. Suppose that Malachi...
5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and PN $4. The table shows Seema's marginal utility. The utility-maximizing bundle is C _and N_ Quantity 1 23 4 5 6 7 8 Quantity 1 2 3 4 5 6 7 8 20 12 8 4 00-10 -20 10 8 6 4 2 0-24 Nuts Coffee Refer to Question 5 from the practice set you solved in tutorial today with the help of your TA...
2 Perfect substitutes Consider an agent with perfectly substitutable utility over R The agent has total wealth w>0 1. Suppose the agent faces linear prices and that P1くPi for every i > 1, what is the agent's optimal consumption bundle? What fraction of her wealth does she spend on each good? Show that the tangency conditions for optimality are satisfed for the bundle you've found. 2. Suppose instead she faces the same linear price for every good. Describe the set...
2. Karen likes to consume sandwiches and brownies. Her daily utility from consuming different quantities of sandwiches and brownies is given in the following table: Mus/ Pg Mug/Pe Mus Brownies Mls Sandwiches TUs TUB 0 0 0 0 39 (-9 37 34(G 35 33 31 29 21 25 23 1 39 1 19 38 13 12.33 i1:67 1-o 2 76 72 1-1 111 102 128 30 26 22 144 4 13 5 175 5 150 10.3 9.67 6 6 204...
Question Kayla's utility depends on her consumption of good 1(Q1) and good 2 (Q2), and it is described by the following utility function: U(Q), Q2 ) = 27 Q7'3 Q3 Deriving Demand functions 1. What are her uncompensated demand functions (Marshallian demand function) for Q1 and Q2? 2. What are her compensated demand functions (Hicksian demand function) for Q1 and Q2? Effects of a price increase (substitution, income, and total effects) Her income is currently $360. Consider that the price...
Utility Max.docx Page 3 of 3 Yaomin is an aficionado of the true baseball experience. Every week during 2. baseball season, he budgets $128 for the game and hot dogs. Assume the price of a hot dog is $2.00 and the price of a baseball game is $60.00. Given the information below about Yaomin's preferences for hot dogs and baseball games, determine his optimal choice of games and hot dogs for each week of the baseball season. Show your work....
Most questions answered within 3 hours.
-
For a Generalized Additive Model, what does a large
edf(empirical distribution function) value mean?
Thank you...
asked 11 minutes ago -
questions for Biology lab
An agarose gel electrophoresis assay performed with high quality
will NOT have...
asked 16 minutes ago -
A spring with spring constant 400 N/m is anchored at the bottom
of a frictionless 30^∘...
asked 19 minutes ago -
The half-life of 238U is 4.5×109 yr.
Find the number of disintegrations per hour emitted by...
asked 28 minutes ago -
y[n] = x[n] - 3x[n - 1] + 4x[n - 2]
What is the transfer function...
asked 34 minutes ago -
Which one of the following statements is TRUE?
a.
An agency relationship is when someone hires...
asked 48 minutes ago -
Consider the liquid phase reaction : A ---> Products which is
to take place in a...
asked 56 minutes ago -
QUESTION ONE: For the following reaction, 13.4 grams of chlorine
gas are allowed to react with...
asked 1 hour ago -
An
Atwood's machine has one block of m1 = 0.370 kg and the other is of...
asked 1 hour ago -
Why is Kevlar a stronger fabric then dacron? Provide two reasons
involving structures.
asked 1 hour ago -
Suppose you have a checkers board. (8 squares wide and 8
squares long) and you
have...
asked 1 hour ago -
Given the following function: QD = 200 - 5.25P
7.1 Derive the Regular Demand Function
7.2...
asked 1 hour ago