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You are choosing between two goods, X and Y, and your marginal utility from each is...
You are choosing between two goods, X and Y, and your marginal utility from each is...
You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X Units of Y MUY MUX 20 16 14 12 6 Instructions: Enter your answers as whole numbers. a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? units X = units b. What total utility will you realize? < Prey...
Units of X MUX Units of Y Instructions: Enter your answers as whole numbers a. If your income is $9.00 and the pric...
Units of X MUX Units of Y Instructions: Enter your answers as whole numbers a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X- units. Y units. b. What total utility will you realize? c. Assume that other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y Will you now purchase? X- units. Y...
1. A consumer is considering to buy only two products, X, and Y. The amount of...
1. A consumer is considering to buy only two products, X, and Y. The amount of total utility yielded by their consumption is shown in the table below. Assume that the prices of X, and Y are $8, and $2 respectively, and that the consumer has an income of $24 to spend. a) Complete the following table by computing the marginal utility and the marginal utility per dollar for successive units of product X and Y. (4 marks) b) How...
Utility maximization with more than two goods Suppose that there four goods Q, R, X and Y , avail...
Utility maximization with more than two goods Suppose that there four goods Q, R, X and Y , available in arbitrary non-negative quantities (so the the consumption set is R 4 +). A typical consumption bundle is therefore a vector (q, r, x, y), where q ≥ 0 is the quantity of good Q, r ≥ 0 is the quantity of good R, x ≥ 0 is the quantity of good X, and y ≥ 0 is the quantity of...
A consumer has the utility function U(X, Y) = (X + 2)(Y + 4). Her income is...
A consumer has the utility function U(X, Y) = (X + 2)(Y + 4). Her income is $100, the price of X is $4, and the price of Y is $5. In order to maximize utility subject to her budget constraint, how many units of X and Y will our consumer choose to purchase? Sketch a budget line – indifference curve diagram illustrating this optimum. Label this optimum A. Suppose the price of X increases to $8, while income and the price...
Consider a consumer whose utility function is given by U(x, y) = x^1/3 y^2/3, where x...
Consider a consumer whose utility function is given by U(x, y) = x^1/3 y^2/3, where x and y represent quantities of consumption of two consumer goods. (a) If the consumer’s income is $100 and the prices of x and y are both $1, how should the consumer maximize her utility? What is her maximum level of utility? (b) If the price of y rose to $2, what would be the resulting income and substitution effects? Illustrate your answer.
Your utility function over the goods X and Z takes the following form: You want to...
Your utility function over the goods X and Z takes the following form: You want to maximize your utility subject to your budget constraint. Assume that the price of X is $3 per unit and the price of Z is $6 per unit, and that the total income you have to spend on X and Z is $720. The consumption bundle that will maximize your utility subject to your budget constraint is X 240 and Z 0 (enter only numbers...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each...
Assume that Andy consumes two goods X and Y. His total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10. Units of the Good Total Utility of X Total Utility of Y 1 2 3 4 5 6 7 8 50 95 135 170 200 225 245 260 400 750 950 1100 1220 1320 1400 1450 a. If Andy is given $65...
4. You spend all your money on goods X and Y. In utility terms, the marginal...
4. You spend all your money on goods X and Y. In utility terms, the marginal cost of spending a dollar on good X is equal to a. The marginal utility of good X b. The marginal utility of good X per dollar C. The marginal utility of good Y d. The marginal utility of good Y per dollar e. The price of good X 5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and...
Each week, Mary selects the quantity of two goods, X and Y that she will consume...
Each week, Mary selects the quantity of two goods, X and Y that she will consume in order to maximize her utility. She spends her entire weekly income on these two goods. Suppose you are given the following information about the choices that Mary makes over a three-week period, where Px is the price of good X, Py is the price of good Y, and I is income: X Y PX PY Week 1 10 10 $1 $1 20 Week...
You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X Units of Y MUY MUX 20 16 14 12 6 Instructions: Enter your answers as whole numbers. a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? units X = units b. What total utility will you realize? < Prey...
Units of X MUX Units of Y Instructions: Enter your answers as whole numbers a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X- units. Y units. b. What total utility will you realize? c. Assume that other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y Will you now purchase? X- units. Y...
1. A consumer is considering to buy only two products, X, and Y. The amount of total utility yielded by their consumption is shown in the table below. Assume that the prices of X, and Y are $8, and $2 respectively, and that the consumer has an income of $24 to spend. a) Complete the following table by computing the marginal utility and the marginal utility per dollar for successive units of product X and Y. (4 marks) b) How...
Your utility function over the goods X and Z takes the following form: You want to maximize your utility subject to your budget constraint. Assume that the price of X is $3 per unit and the price of Z is $6 per unit, and that the total income you have to spend on X and Z is $720. The consumption bundle that will maximize your utility subject to your budget constraint is X 240 and Z 0 (enter only numbers...
4. You spend all your money on goods X and Y. In utility terms, the marginal cost of spending a dollar on good X is equal to a. The marginal utility of good X b. The marginal utility of good X per dollar C. The marginal utility of good Y d. The marginal utility of good Y per dollar e. The price of good X 5. Seema has $20 for coffee (C) and nuts (N), with pc = $2 and...
Each week, Mary selects the quantity of two goods, X and Y that she will consume in order to maximize her utility. She spends her entire weekly income on these two goods. Suppose you are given the following information about the choices that Mary makes over a three-week period, where Px is the price of good X, Py is the price of good Y, and I is income: X Y PX PY Week 1 10 10 $1 $1 20 Week...
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