if at a given combination of X and Y in consumers marginal rate of substitution is...
if at a given combination of X and Y in consumers marginal rate of substitution is 4, this means that the consumer is willing to give up units of Y for another blank units of X for another X or y
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if at a given combination of X and Y in consumers
marginal rate of substitution is...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
2. Suppose there are two consumers, A and B, and two goods, X and Y. Consumer...
2. Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 2 units of good X and 3 units of good Y. Consumer B is given an initial endowment of 6 units of good X and 5 units of good Y. Consumer A’s utility function is given by: UA(X,Y) = X1/2*Y1/2, And consumer B’s utility function is given by UB(X,Y) = X1/4*Y3/4. Therefore, consumer A’s marginal utilities for...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the...
what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the two goods at a point on the indifference curve. b) The amount of one good that the consumers is willing to trade for one unit of the other. c) The change in the consumers utility when one good is substituted for another. d) The slope of the indifference curve.
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of...
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?
3. (22 total points) Suppose there are two consumers, A and B, and two goods, X...
3. (22 total points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 2 units of good X and 3 units of good Y. Consumer B is given an initial endowment of 6 units of good X and 5 units of good Y. Consumer A's utility function is given by: And consumer B's utility function is given by Therefore, consumer A's marginal utilities for each good are...
A consumer’s marginal rate of substitution (MRSxy) is always 4. The price of Good X is...
A consumer’s marginal rate of substitution (MRSxy) is always 4. The price of Good X is $10 and the price of Good Y is $2. Which of the following will be true? a. The consumer will only buy Good Y. b. The consumer will only buy Good c. The consumer will spend all her income and buy some of Good X and some of Good Y. d. The consumer's expenditures on Good X will be four times more than her...
7) a) What is the relationship between marginal rate of substitution (MRS) and the concept of...
7) a) What is the relationship between marginal rate of substitution (MRS) and the concept of an indifference curve? b) Suppose a consumer's utility function is defined by u(x,y)=3x+y for every x>0 and y0. Calculate a formula for MRS at every combination of x and y. c) Suppose that P,-/ P, and that this consumer has an initial endowment of wealth w=100. Find this individual's utility maximizing demand of x and y. 10 pts
i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph...
i) Find the Marginal Rate of Substitution at the given bundle,
and ii) use a graph to indicate the given bundle,
and accurately draw the indifference curve that
goes through that bundle. Be sure to label you graph carefully and
accurately. In all cases put the amount of good X on the horizontal
axis, and the amount of good Y on the vertical axis.
c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
4. Let the household utility function be given by U(x,y) = Vxy. a. Find the marginal...
4. Let the household utility function be given by U(x,y) = Vxy. a. Find the marginal utilities of X and Y and write the expression for the marginal rate of substitution between X and Y. b. Let I = $100, Px = $10 and Ry = $10 be the set of prices and income. Find the utility maximizing combination of X and Y given the prices and income. c. What is the level of utility of the chosen bundle of...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?
3. (22 total points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 2 units of good X and 3 units of good Y. Consumer B is given an initial endowment of 6 units of good X and 5 units of good Y. Consumer A's utility function is given by: And consumer B's utility function is given by Therefore, consumer A's marginal utilities for each good are...
7) a) What is the relationship between marginal rate of substitution (MRS) and the concept of an indifference curve? b) Suppose a consumer's utility function is defined by u(x,y)=3x+y for every x>0 and y0. Calculate a formula for MRS at every combination of x and y. c) Suppose that P,-/ P, and that this consumer has an initial endowment of wealth w=100. Find this individual's utility maximizing demand of x and y. 10 pts
i) Find the Marginal Rate of Substitution at the given bundle,
and ii) use a graph to indicate the given bundle,
and accurately draw the indifference curve that
goes through that bundle. Be sure to label you graph carefully and
accurately. In all cases put the amount of good X on the horizontal
axis, and the amount of good Y on the vertical axis.
c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
4. Let the household utility function be given by U(x,y) = Vxy. a. Find the marginal utilities of X and Y and write the expression for the marginal rate of substitution between X and Y. b. Let I = $100, Px = $10 and Ry = $10 be the set of prices and income. Find the utility maximizing combination of X and Y given the prices and income. c. What is the level of utility of the chosen bundle of...
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