Homework Answers
The change in demand due to change in rate of exchange is called substitution effect while change in demand due to change in purchasing power is called income effect.
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Charlie consumes apples and bananas. His utility function is: U(xA; xB) xAxB. The price of apples...
7. Charlie consumes apples and bananas. We had a look at two of his indifference curves....
7. Charlie consumes apples and bananas. We had a look at two of his indifference curves. In this problem we give you enough information so you can find all of Charlie's indifference curves. We do this by telling you that Charlie's utility function happens to be U (XA, xB ) = xA* x8 (a) Charlie has 40 apples and 5 bananas. Charlie's utility for the bundle (40, 5) is U (40 5)- The indifference curve through (40, 5) includes all...
Diana's utility function for consuming apples (Xa) and Bananas (Xb) is U(Xa,Xb) = XaXb. Suppose the...
Diana's utility function for consuming apples (Xa) and Bananas (Xb) is U(Xa,Xb) = XaXb. Suppose the prices of apples is $1, bananas $2, and her income is $40. On a graph with bananas on the y-axis, use blue ink to draw Bianca’s budget line.With red ink, plot an indifference curve that gives her a utility level of 150. Using black ink, plot an indifference curve that gives her a utility level of 300. Can Bianca afford any bundles that give...
4. Charlie likes both apples and bananas. He consumes nothing else. Charlie consumes x bushels of apples per year...
4. Charlie likes both apples and bananas. He consumes nothing else. Charlie consumes x bushels of apples per year and x bushels of bananas per year. Suppose that Charlie's preference is represented in the following utility function: u(x,,Xy)-x,Xy . Suppose that the price of apples is S1, the price of bananas is S2, and Charlie's income is $40. (14 points) a. Draw Charlie's budget line. Plot a few points on the indifference curve that gives Charlie a utility of 150...
Can't use Lagrange on this. Multiple Choice Practice- Show work or provide short explanation 4. Charlie's utility function for apples (A) and bananas (B) is U(AB)-AB. The price of apples used...
Can't use Lagrange on this.
Multiple Choice Practice- Show work or provide short explanation 4. Charlie's utility function for apples (A) and bananas (B) is U(AB)-AB. The price of apples used to be S1 per apple and the price of bananas used to be $2 per banana. His incomse was $40 per day. If the price of apples increases to $2.25 and the price of bananas falls to S1.25, then in order to be able to afford his old bundle,...
3. Consider Charlie who consumes apples (xi) and bananas (2). Suppose that he consumes one apple...
3. Consider Charlie who consumes apples (xi) and bananas (2). Suppose that he consumes one apple and 8 bananas. That is, his current consumption bundle is (1,8). (a) Suppose that Charlie's marginal rate of substitution for one more apple is 2 bananas. If he is offered to trade apples and bananas at one-to-one rate, does he trade? Explain your answer. (b) Suppose that Charlie's preference is convex. If he were to consume 8 apples and one banana, his marginal rate...
Charlie's utility function is xAxB. The price of apples used to be $1 per unit and...
Charlie's utility function is xAxB. The price of apples used to be $1 per unit and the price of bananas was $2 per unit. His income was $40 per day. If the price of apples increased to $2.25 and the price of bananas fell to $1.25, a. compute the optimal consumption bundle for both goods before the price change; b. Compute the daily income after the price change in order to be able to just afford his old bundle.
Charlie’s utility function is ?(??, ??) = ????. The price of apples used to be $1,...
Charlie’s utility function is ?(??, ??) = ????. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $5 and the price of bananas stayed constant, the substitution effect (not total effect) on Charlie’s apple consumption would reduce his consumption by (choose the closest answer) Answer is 11 apples
1. Charlotte loves apples and hates bananas. Her utility function is U (a,b) a-b2/4, where a...
1. Charlotte loves apples and hates bananas. Her utility function is U (a,b) a-b2/4, where a is the number of apples she consumes and b is the num- ber of bananas she consumes. Assume that Charlotte's income is y • What are the demand functions for Charlotte ? • What are the Engel curves for Charlotte? 2. Wilbur likes both apples and bananas. His utility function is U(a,b) = ab1/2. Assume Wilbur's budget is m, the price of apple is...
Suppose Mike's utility function for apples and bananas is U(A, B) = AB. What is the...
Suppose Mike's utility function for apples and bananas is U(A, B) = AB. What is the marginal utility of apples?* Your answer What is the marginal utility of bananas?* Your answer What is the marginal rate of substitution for apples with 2 bananas? * Your answer
please show all your works 1. Craig consumes apples and bananas. We had a look at...
please show all your works
1. Craig consumes apples and bananas. We had a look at two of his indifference curves. In this problem we give you enough information so you can find all of Craig's indifference curves. We do this by telling you that Craig's utility function happens to be U(XA, XR) = XAXB a. Craig has 40 apples and 5 bananas. Craig's utility for the bundle (40,5) is? b. Draw the indifference curve showing all of the bundles...
7. Charlie consumes apples and bananas. We had a look at two of his indifference curves. In this problem we give you enough information so you can find all of Charlie's indifference curves. We do this by telling you that Charlie's utility function happens to be U (XA, xB ) = xA* x8 (a) Charlie has 40 apples and 5 bananas. Charlie's utility for the bundle (40, 5) is U (40 5)- The indifference curve through (40, 5) includes all...
4. Charlie likes both apples and bananas. He consumes nothing else. Charlie consumes x bushels of apples per year and x bushels of bananas per year. Suppose that Charlie's preference is represented in the following utility function: u(x,,Xy)-x,Xy . Suppose that the price of apples is S1, the price of bananas is S2, and Charlie's income is $40. (14 points) a. Draw Charlie's budget line. Plot a few points on the indifference curve that gives Charlie a utility of 150...
Can't use Lagrange on this.
Multiple Choice Practice- Show work or provide short explanation 4. Charlie's utility function for apples (A) and bananas (B) is U(AB)-AB. The price of apples used to be S1 per apple and the price of bananas used to be $2 per banana. His incomse was $40 per day. If the price of apples increases to $2.25 and the price of bananas falls to S1.25, then in order to be able to afford his old bundle,...
3. Consider Charlie who consumes apples (xi) and bananas (2). Suppose that he consumes one apple and 8 bananas. That is, his current consumption bundle is (1,8). (a) Suppose that Charlie's marginal rate of substitution for one more apple is 2 bananas. If he is offered to trade apples and bananas at one-to-one rate, does he trade? Explain your answer. (b) Suppose that Charlie's preference is convex. If he were to consume 8 apples and one banana, his marginal rate...
1. Charlotte loves apples and hates bananas. Her utility function is U (a,b) a-b2/4, where a is the number of apples she consumes and b is the num- ber of bananas she consumes. Assume that Charlotte's income is y • What are the demand functions for Charlotte ? • What are the Engel curves for Charlotte? 2. Wilbur likes both apples and bananas. His utility function is U(a,b) = ab1/2. Assume Wilbur's budget is m, the price of apple is...
Suppose Mike's utility function for apples and bananas is U(A, B) = AB. What is the marginal utility of apples?* Your answer What is the marginal utility of bananas?* Your answer What is the marginal rate of substitution for apples with 2 bananas? * Your answer
please show all your works
1. Craig consumes apples and bananas. We had a look at two of his indifference curves. In this problem we give you enough information so you can find all of Craig's indifference curves. We do this by telling you that Craig's utility function happens to be U(XA, XR) = XAXB a. Craig has 40 apples and 5 bananas. Craig's utility for the bundle (40,5) is? b. Draw the indifference curve showing all of the bundles...
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