If the utility function (U) between food (F) and clothing (C) can be represented as U=...
If the utility function (U) between food (F) and clothing (C) can be represented as U= SQRT(F*C), the
marginal rate of substitution of clothing for food will ________ if more food and less clothing are consumed.
A) increase in absolute terms
B) decrease in absolute terms
C) remain the same
D) Not enough information.
Homework Answers
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If the utility function (U) between food (F) and clothing (C)
can be represented as U=...
36. If the utility function (U) between food (F) and clothing (C) can be represented as...
36. If the utility function (U) between food (F) and clothing (C) can be represented as U = VFX C, the marginal utility of food equals O A. 172./F7C. OB. FIC C. 172./C/F. OD. /C/F. 37. If Fred's marginal rate of substitution of salad for pizza equals five, then O A. he will eat five times as much pizza as salad. OB. he would give up five salads to get the next pizza. O c. he will eat five times...
John has preferences for food F and clothing C described by a utility function U(F,C) =...
John has preferences for food F and clothing C described by a utility function U(F,C) = min (F, 2C). Suppose that food costs $1 a unit and that clothing costs $2 a unit. John has $12 to spend on food and clothing. (10 pts.) a) On a graph, draw indifference curves corresponding to u = 6, u = 10, u = 14. Make sure to label coordinates clearly. Using the graph, find the optimal choice of food and clothing. Let...
The utility that Julie receives by consuming food F and clothing C is given by U(F,...
The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U = 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
2. An individual's preferences over food (F) and clothing (C) are represented by the utility function...
2. An individual's preferences over food (F) and clothing (C) are represented by the utility function U(F, C)FiC. She currently has 9 units of food and 8 units of clothing According to her MRS, she would be willing to give up a maximum of 4/3 units of food to obtain one more piece of clothing. a. True b. False
3.10. The utility that Julie receives by consuming food F and clothing C is given by...
3.10. The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U= 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...
Suppose that Bridget and Erin spend their incomes on only two goods, food (F) and clothing...
Suppose that Bridget and Erin spend their incomes on only two goods, food (F) and clothing (C). Bridget’s preferences are represented by the utility function U(F,C)=10FC, while Erin’s preferences are represented by the utility function UF,C=5F2C. With the market basket F=2 and C=5, both Bridget and Erin get 100 unit of utility. Is it correct to say that Bridget and Erin have the same preference (i.e. their indifference curves are the same)? Explain your answer. Would you agree that Erin...
A.O B. 24 C. 40 D. 60 The demand curve for the new computer game, Rock...
A.O B. 24 C. 40 D. 60 The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 250 - 5P-0.1P. - 0.5P+0.2A-21 where P is the price of the game, P. is the price of a computer, P is the price of a diskette. A is the level of advertising, and Q is the level of income. Suppose P = 10. P. = 100. P. = 2. A = 5, and I...
Jane's utility function is represented as: U = F0.5 C0.5, F is quantity of food and...
Jane's utility function is represented as: U = F0.5 C0.5, F is quantity of food and C is quantity of clothing. If her budget constraint is represented as: 125 = 2F + 4C, her optimal bundle of consumption contains how many units of clothing? the answer is 15.6250 please show steps
Jennifer buys two goods, food (F) and clothing (C), with the utility function U(F,C) = FC....
Jennifer buys two goods, food (F) and clothing (C), with the
utility function U(F,C) = FC. Assume initially that she has an
income of $72, the price of clothing is PC = $1 per unit, and the
price of food is initially PF1 = $9 per unit and that the price
subsequently falls to PF2 = $4 per unit. Use this information and
the accompanying graph to answer the following questions.
(a) Find the equation for budget line (BL1) when...
If the utility function (U) between bananas (B) and jam (J) can be represented as U(B,J)...
If the utility function (U) between bananas (B) and jam (J) can be represented as U(B,J) = 3ln(B)+4ln(J), what is the marginal rate of substitution (MRSBJ) between bananas and jam? I know the answer I am just trying to figure out how to get there..
36. If the utility function (U) between food (F) and clothing (C) can be represented as U = VFX C, the marginal utility of food equals O A. 172./F7C. OB. FIC C. 172./C/F. OD. /C/F. 37. If Fred's marginal rate of substitution of salad for pizza equals five, then O A. he will eat five times as much pizza as salad. OB. he would give up five salads to get the next pizza. O c. he will eat five times...
John has preferences for food F and clothing C described by a utility function U(F,C) = min (F, 2C). Suppose that food costs $1 a unit and that clothing costs $2 a unit. John has $12 to spend on food and clothing. (10 pts.) a) On a graph, draw indifference curves corresponding to u = 6, u = 10, u = 14. Make sure to label coordinates clearly. Using the graph, find the optimal choice of food and clothing. Let...
2. An individual's preferences over food (F) and clothing (C) are represented by the utility function U(F, C)FiC. She currently has 9 units of food and 8 units of clothing According to her MRS, she would be willing to give up a maximum of 4/3 units of food to obtain one more piece of clothing. a. True b. False
A.O B. 24 C. 40 D. 60 The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 250 - 5P-0.1P. - 0.5P+0.2A-21 where P is the price of the game, P. is the price of a computer, P is the price of a diskette. A is the level of advertising, and Q is the level of income. Suppose P = 10. P. = 100. P. = 2. A = 5, and I...
Jennifer buys two goods, food (F) and clothing (C), with the
utility function U(F,C) = FC. Assume initially that she has an
income of $72, the price of clothing is PC = $1 per unit, and the
price of food is initially PF1 = $9 per unit and that the price
subsequently falls to PF2 = $4 per unit. Use this information and
the accompanying graph to answer the following questions.
(a) Find the equation for budget line (BL1) when...
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