Brittany's utility function is U(X,Y) = X0.5Y0.5, where good X is shown on the horizontal axis and good Y is shown on the vertical axis. What is the slope of her indifference curve when X = 1 and Y = 6?
Brittany's utility function is U(X,Y) = X0.5Y0.5, where good X is shown on the horizontal axis...
Lana's utility function is U(X,Y) = X0.25Y0.75, where good X is shown on the horizontal axis and good Y is shown on the vertical axis. What is the slope of her indifference curve when X = 1 and Y = 6?
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 e) On a graph with x on the horizontal axis and y on the vertical axis, draw a typical indifference curve (it is not exactly to scale, but it needs to reflect accurately whether there is a diminishing MRS x,y). Also, indicate on your graph whether the indifference curve will intersect either or both exes. label the curve U1. f) on the same graph draw a second indifference curve...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
Assume good X is on the horizontal axis, and good Y is on the vertical axis. If a consumer's budget constraint has a slope that is less than -1: O the price of good X is greater than the price of good Y. O the consumer gets more utility from good X than from good Y. O the price of good X is less than the price of good Y. O the consumer gets less utility from good X than...
Mustapha’s utility function is as follows: U = 10x0.8 y0.6 Budget constraint: 100 = 6x + 4y a. Solve for the utility-maximizing bundle b. Find the equation of the indifference curve that contains the utility-maximizing bundle. c. Sketch the solution, labeling all relevant items, x on the horizontal axis and y on the vertical axis. d. At the utility-maximizing bundle, what is the increase in Mustapha’s utility from the last dollar spent on good X? What about for good Y?...
2. Janice consumes two goods, X and Y. Janice has a utility function given by the expression: U = 4x0.5y 0.5 The current prices of X and Y are $25 and $50, respectively. Janice currently has an income of $750 per time period (Put X on the horizontal axis and Y on the vertical axis). a) Is the assumption that "more is better” satisfied for both goods? b) Calculate MRSxy. Determine if it is diminishing for this utility function. c)...
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by U = MIN [2X, Y]. Sketch the graph of the consumers indifference curve that goes through the bundle X = 7 and Y = 8. Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis. Which of the three assumptions that we made about consumer preferences is violated in this case?
3. Suppose the utility function for two goods, x and y, is: U = U(x,y) = xłyż. a. Graph the indifference curve for U = 10. b. If x = 5, what must y equal to be on the U = 10 indifference curve? What is the MRS at this point? c. Derive a general expression for the MRS for this utility function. Show how it can be interpreted as the ratio of the marginal utilities. d. Does this individual...
Suppose that a consumer's utility function is u(x, y) = x, defined for all bundles such that x > 0 and y > 0. For any given positive level of utility, the corresponding indifference curve is O strictly convex. a vertical line. O a horizontal line. a line that is neither horizontal nor vertical.