Jack’s utility is given by u(x1, x2) = x13x22. If I = $200, P1 = $20...

Question

Question

Jack’s utility is given by u(x1, x2) = x13x22. If I = $200, P1 = $20 and P2 = $4, how many units of x1 will Jack consume to maximize his utility?

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

1. (20 points) Mac has utility over x; and x2 given by u(x1, x2) = min...

1. (20 points) Mac has utility over x; and x2 given by u(x1, x2) = min . If P. = $1. P. = $1. and I = $100. find the value of xı* (Hint: This is Leontief utility, the kind with right-angled indifference curves) 2. (10 points) If P, = $4, P2 = $2, and I = $20, and my utility is given by u(x1, x2) = 4x1 + 3x2, find x* (Note: I'm asking for optimal consumption of Good...
1.) Liz has utility given by u(x2,x1)=x1^7x2^8. If P1=$10, P2=$20, and I = $150, find Liz’s...

1.) Liz has utility given by u(x2,x1)=x1^7x2^8. If P1=$10, P2=$20, and I = $150, find Liz’s optimal consumption of good 1. (Hint: you can use the 5 step method or one of the demand functions derived in class to find the answer). 2.) Using the information from question 1, find Liz’s optimal consumption of good 2 3.) Lyndsay has utility given by u(x2,x1)=min{x1/3,x2/7}. If P1=$1, P2=$1, and I=$10, find Lyndsay’s optimal consumption of good 1. (Hint: this is Leontief utility)....
My utility is given by u(x1, x2) = 2x194x2-2 + In(x1) + [min{x1, x2)] + 2x2...

My utility is given by u(x1, x2) = 2x194x2-2 + In(x1) + [min{x1, x2)] + 2x2 + x1!! True, False, or Cannot Be Determined: When P1 = $2,P2 = $4, and I = $100, my optimal consumption bundle is (x1,x2) = (25,15).

The individual has a utility function of u(x1, x2) = min (4x1, 5x2) and faces prices...

The individual has a utility function of u(x1, x2) = min (4x1, 5x2) and faces prices p1=2 and p2=1. We know they consume 20 units of x2 and spend all their income. What is the demand function for x1?
The utility function of the consumer is u(x1, x2) = VX1 + X2. a) Let P1...

The utility function of the consumer is u(x1, x2) = VX1 + X2. a) Let P1 = 2,P2 = 20 and m = 24. Calculate the optimal quantity demanded of good 1 and 2. (7 points) b) Let p. = 1,P2 = 4 and m = 100. Calculate the optimal quantity demanded of good 1 and 2. (6 points) c) Let P1 = 1,P2 = 4 and m = 4. Compared to point b), by how much would the consumer...
Jerami's utility function is given by U(x1,x2) = 2x1 +2X2. What is his demand for each...

Jerami's utility function is given by U(x1,x2) = 2x1 +2X2. What is his demand for each good if P1 = 4,P2 =6, and m=60? x1 = 6; x2 = 6 x1 =0:x2 - 10 x1 = 15; x2 = 0 O x1 = 60; x2 = 0

Question 1 (20 points). The utility function of the consumer is u(x1, x2) = x1 +...

Question 1 (20 points). The utility function of the consumer is u(x1, x2) = x1 + x2. a) Let pı = 2 ,P2 = 20 and m = 24. Calculate the optimal quantity demanded of good 1 and 2. (7 points) b) Let p1 = 1,P2 = 4 and m = 100. Calculate the optimal quantity demanded of good 1 and 2. (6 points) c) Let P1 = 1, p2 = 4 and m = 4. Compared to point b),...
The utility function is u = x1½ + x2, and the budget constraint is m =...

The utility function is u = x1½ + x2, and the budget constraint is m = p1x1 + p2x2. Derive the optimal demand curve for good 1, x1(p1, p2), and good 2, x2(m, p1, p2). Looking at the cross price effects (∂x1/∂p2 and ∂x2/∂p1) are goods x1 and x2 substitutes or complements? Looking at income effects (∂x1/∂m and ∂x2/∂m) are goods x1 and x2 inferior, normal or neither? Assume m=100, p1=0.5 and p2=1. Using the demand function you derived in...
Nathan’s utility function is U(x1, x2) = lnx1 + x2. If the price of good 1...

Nathan’s utility function is U(x1, x2) = lnx1 + x2. If the price of good 1 is $1, the price of good 2 is $5, and his income is $100, how many units of good 1 (x1) and good 2 (x2) will Nathan consume?

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....