a) utility function is
U(x,y) = x / +y /
Therefore, MUx = dU/dx = x-1 /= x-1
MUy = dU/dy = y-1 / = y-1
b) MRSxy = MUx /MUy = x-1 /y-1
a) Graph the indifference curve for U 25 b) Derive the MUx and MUy c) Derive the MRSy d) Calculate the MRSxy for the following utility function: U(x,y) (ry)12
a) Graph the indifference curves for U 12 and U-16 b) Derive the MUx and MUy c) Derive the MRSy d) Does the MRSxy diminish as x increases?
7. Lori has the following utility function U = X0.5Y0.5 MUx = 0.5 X-0.5Y0.5 MUy = 0.5 X0.5Y-0.5 A.) Calculate Lori’s optimal consumption bundle when Px = Py = 10 given a budget of 200 B.)Calculate Lori’s optimal consumption bundle if Px = 5, other things equal C.) Derive Lori’s demand for good X assuming it is linear.
U (x, y) = 3x3 + 6y3 a)Calculate MUx and MUy. b) Do the consumer’s preferences exhibit a diminishing marginal utility for each good? c) Calculate MRSx,y. d) Do the consumer’s preferences exhibit a diminishing marginal rate of substitution of x?
U (x, y) = 3x3/4 + 3y a)Calculate MUx and MUy. b) Do the consumer’s preferences exhibit a diminishing marginal utility for each good? c) Calculate MRSx,y. d) Do the consumer’s preferences exhibit a diminishing marginal rate of substitution of x?
U (x, y) = 4x11/6 y1/6 . a)Calculate MUx and MUy. b) Do the consumer’s preferences exhibit a diminishing marginal utility for each good? c) Calculate MRSx,y. d) Do the consumer’s preferences exhibit a diminishing marginal rate of substitution of x?
Find the Marginal Utility of X; the Marginal Utility of Y; the ratio MUx / MUy for each of the following: a. U(x,y) = 15x.2y.3 b. U(x,y)=.5xy c. U(x,y)=6x.4y.5 d. U(x,y)=3x.5y.8
U (x, y) = 5x1/3 y2/3 a)Calculate MUx and MUy. b) Do the consumer’s preferences exhibit a diminishing marginal utility for each good? c) Calculate MRSx,y. d) Do the consumer’s preferences exhibit a diminishing marginal rate of substitution of x?
True or False. 1. If MUX/PX > MUY/Py at the best affordable bundle with goods X and Y the individual will not consume any of good Y.
QUESTION 10 Units of X MU MUx/Px $2 Units of Y MUy MUy/Py $4 20 1 48 18 2 40 3 16 36 14 4 32 12 24 6 1 6 12 If the prices of X and Y are $2 and $4 per unit, respectively, and this consumer has $10 in income to spend, to maximize total utility, this consumer should buy O 2 units of X and 2 units of Y 01 unit of X and 1 unit...