Homework Answers
Add Answer to:
Lorelai's choice behavior can be represented by the utility function u(x1, 2) 0.9n(x)0.1x2. The prices of...
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices...
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices of both x1 and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set but at least linear in good x2) the preferences and parameters accordingly as given in the question. Click...
Lorelai's choice behavior can be represented by the utility function 11(xi, X2) = 0.91n(xi) + 0.1x2...
Lorelai's choice behavior can be represented by the utility function 11(xi, X2) = 0.91n(xi) + 0.1x2 The prices of both x and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, but at least linear in good x2.) 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set the preferences and parameters accordingly as given in the...
Luke's choice behavior can be represented by the utility function u(x1,x2)= x1 + x2
Luke's choice behavior can be represented by the utility function u(x1,x2)= x1 + x2.The prices of x1 and x2 are denoted as p1 and p2, and his income is m. 1. Draw at least three indifference curves and find its slope (i.e. MRS). Is the MRS changing depending on the points of (x1, x2) at which it is evaluated, or constant? 2. Draw a budget constraint assuming that p1 < P2. Find the optimal bundle (x1*,x2*) as a function of income and prices. 3....
how did they get MRS= -x2/x1? Consider the utility function u ( 2 2) = Inc. +Inc. Suppose that the initial situation...
how
did they get MRS= -x2/x1?
Consider the utility function u ( 2 2) = Inc. +Inc. Suppose that the initial situation s given by Pi = 1, P2 = 2 and m = 100. Note that MU = 1 and MU2 = a) Find the consumer's optimal consumption bundle (0,2) and his utility at this consumption bundle. Solution: The budget line is 2.02 = 100 - 21 (1) Since the optimal bundle is an interior point, the tangency condition...
22) Consider the following consumption choice between x1 and 2 for an individual who has a classical utility functi...
22) Consider the following consumption choice between x1 and 2 for an individual who has a classical utility function (eg, no Thayler's utility). Only consider they are looking for an interior solution. (10pts) U(X, X) = 6x} +8xź MU( x ) = 12x MU(X) = 16X2 Subject to the budget constraint: 1000 = 5.X1 +4. X2 a. Find the optimal consumption bundle. (4 pts) b. Find the utility at this point. (1 pt) C. Show work (5 pts)
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of...
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of good 1 and good 2 are p1 = P2 = 4. The consumer's income is m = 120. (a) Find the consumer's preferred bundle. (b) Draw the consumer's budget line. (c) On the same graph, indicate the consumer's preferred bundle and draw the indifference curve through it. (d) Now suppose that the consumer gets a discount on good 1: each unit beyond the 4th...
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. S...
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two friends, Michael and Peter 1 and Peter's is given by u(x1, X2) = = 1042 1 Τ) -x12. Who has the same preferences as Anne? And who has indifference curves with similar shape as Anne's indifference curves? Explain.
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two...
Question 5: Jess has the utility function U(xi,2)min2x,32. The price of x is pxi,the price of...
Question 5: Jess has the utility function U(xi,2)min2x,32. The price of x is pxi,the price of x2 is p and his income is 1. Find Jess's optimal bundle xf and x as a function of pxi Px,and m. 2. What's the proportion of consumption amounts between x and x? In other words, find 3. Suppose instead the utility function is U(xi , X2) min{x , x2 }, without solving for the optimal bundles, what's the proportion of consumption amounts betwee...
Suppose that a consumer has a utility function given by u(x1, x2) = 2x1 + x2. Initially the consumer faces prices (2, 2) and has income 24. i. Graph the budget constraint and indifference curves. Find...
Suppose that a consumer has a utility function given by u(x1, x2) = 2x1 + x2. Initially the consumer faces prices (2, 2) and has income 24. i. Graph the budget constraint and indifference curves. Find the initial optimal bundle. ii. If the prices change to (6, 2), find the new optimal bundle. Show this in your graph in (i). iii. How much of the change in demand for x1 is due to the substitution effect? How much due to...
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2....
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices of both x1 and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set but at least linear in good x2) the preferences and parameters accordingly as given in the question. Click...
Lorelai's choice behavior can be represented by the utility function 11(xi, X2) = 0.91n(xi) + 0.1x2 The prices of both x and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, but at least linear in good x2.) 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set the preferences and parameters accordingly as given in the...
how
did they get MRS= -x2/x1?
Consider the utility function u ( 2 2) = Inc. +Inc. Suppose that the initial situation s given by Pi = 1, P2 = 2 and m = 100. Note that MU = 1 and MU2 = a) Find the consumer's optimal consumption bundle (0,2) and his utility at this consumption bundle. Solution: The budget line is 2.02 = 100 - 21 (1) Since the optimal bundle is an interior point, the tangency condition...
22) Consider the following consumption choice between x1 and 2 for an individual who has a classical utility function (eg, no Thayler's utility). Only consider they are looking for an interior solution. (10pts) U(X, X) = 6x} +8xź MU( x ) = 12x MU(X) = 16X2 Subject to the budget constraint: 1000 = 5.X1 +4. X2 a. Find the optimal consumption bundle. (4 pts) b. Find the utility at this point. (1 pt) C. Show work (5 pts)
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of good 1 and good 2 are p1 = P2 = 4. The consumer's income is m = 120. (a) Find the consumer's preferred bundle. (b) Draw the consumer's budget line. (c) On the same graph, indicate the consumer's preferred bundle and draw the indifference curve through it. (d) Now suppose that the consumer gets a discount on good 1: each unit beyond the 4th...
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two friends, Michael and Peter 1 and Peter's is given by u(x1, X2) = = 1042 1 Τ) -x12. Who has the same preferences as Anne? And who has indifference curves with similar shape as Anne's indifference curves? Explain.
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two...
Question 5: Jess has the utility function U(xi,2)min2x,32. The price of x is pxi,the price of x2 is p and his income is 1. Find Jess's optimal bundle xf and x as a function of pxi Px,and m. 2. What's the proportion of consumption amounts between x and x? In other words, find 3. Suppose instead the utility function is U(xi , X2) min{x , x2 }, without solving for the optimal bundles, what's the proportion of consumption amounts betwee...
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
Most questions answered within 3 hours.
-
In 1970s and 1980s, molecular biologists discovered that the
hormone testosterone, binds a receptor protein that...
asked 1 hour ago -
january 1 2010 road catering service purchase a piece of
equipment for 58000 which is expected...
asked 1 hour ago -
Explain Mertons concept of anomie is and what the
modes of adaptation to it are?
asked 2 hours ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 4 hours ago -
How many liters of 0.669 M KOH will be needed to raise the pH of
0.339...
asked 6 hours ago -
A liquid of density 1270 kg/m 3 flows steadily through a pipe of
varying diameter and...
asked 6 hours ago -
Questions: What should the American executive do?
'A visiting American executive finds that a foreign subsidiary...
asked 6 hours ago -
Activity based costing was introduced as an alternative to
absorption costing.
1. Discuss using illustration the...
asked 6 hours ago -
1. You own shares of Crane DVD Company and are interested in
selling them. With so...
asked 6 hours ago -
How many grams of He are necessary to fill a balloon having a
volume of 4.5E3...
asked 6 hours ago -
The 2 patients, still in the hospital, were interviewed by a
MoH epidemiologist. The interviews revealed...
asked 6 hours ago -
An uncharged capacitor and a resistor are connected in series to
a source of emf. If...
asked 7 hours ago