Peter has a utility function U(x, y) = min {2x, y}. The price of good x...

Question

Question

Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the price of good y is $10. If Peters inc

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

U(x, y) = min (ax, y) So In this case, it is written as: minimum of ax and y 231= y Bas Py =10 M=200 Budget constraint Pia +P y = 2(8) y = 16 units. x=8 units maximise his will utility.

Add a comment

Answer 2

Similar Homework Help Questions

Peter has a utility function U(x, y) = min {2x, y}. The price of good x...

Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the price of good y is $10. If Peter's income is $200, how many units of good x would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?
Question 9 Peter has a utility function U(x, y) = min {2x, y}. The price of...

Question 9 Peter has a utility function U(x, y) = min {2x, y}. The price of good x is $5, and the priče of good y is $10. If Peter's income is $200, how many units of good x would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?
U(x, y) = x^2 + y. The price of good x is $10, and the price...

U(x, y) = x^2 + y. The price of good x is $10, and the price of good y is $1. If Ambrose’s income is $200, how many units of good x would he consume if he chose the bundle that maximizes his utility subject to his budget constraint?

Doreen has a utility function U(x, y) = 10x + 5y. The price of good x...

Doreen has a utility function U(x, y) = 10x + 5y. The price of good x is $1, and the price of good y is $2. If Doreen's income is $100, how many units of good y would she consume if she chose the bundle that maximizes her utility subject to her budget constraint?
Doreen has a utility function U(x, y) = 10x + 5y.

Doreen has a utility function U(x, y) = 10x + 5y. The price of good x is $1, and the price of good y is $2. If Doreen's income is $100, how many units of good x would she consume if she chose the bundle that maximizes her utility subject to her budget constraint?
Please show work: 3. Ollie has a utility function u(x, y) = (x + 2)(y +...

Please show work: 3. Ollie has a utility function u(x, y) = (x + 2)(y + 3). The price of x is $1, and the price of y is $1. When he maximizes his utility subject to his budget constraint, he consumes positive amounts of both goods. In what proportion does Ollie consume goods x and y?

Imagine you consume two goods, X and Y, and your utility function is U = XY....

Imagine you consume two goods, X and Y, and your utility function is U = XY. Your budget is $100, the price of Good X is $4, and the price of Good Y is $25. So, the optimal bundle for you to consume is (12.5, 2). Now the price of good X increases to $10. The compensated price bundle is (7.91, 3.16). What is the income effect on X?
Consider the following utility function of 3 goods, x, y and z: U(x,y,z)=ax+by+cz; x,y,z≥0 and a,...

Consider the following utility function of 3 goods, x, y and z: U(x,y,z)=ax+by+cz; x,y,z≥0 and a, b, c are constants. The prices of good x and y is denoted by pX and pY respectively. The income is denoted by m. Good z is provided by the government free of cost but the quantity of good z provided by the government depends on the consumption of good x and y chosen by the consumer. For example, if in equilibrium, the consumer...
Lucas gets utility (satisfaction) from two goods, A and B, according to the utility function U(A,B)...

Lucas gets utility (satisfaction) from two goods, A and B, according to the utility function U(A,B) = 10[A−2 +B−2]−2. While Luke would like to consume as much as possible he is limited by his income. a. Maximize Lucas’ utility subject to the budget constraint using the Lagrangean method. 3. Utility maximization under constraint Lucas gets utility (satisfaction) from two goods, A and B, according to the utility function U(A,B) = 10[A-? +B)-2. While Luke would like to consume as much...

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...

Peter has a utility function U(x, y) = min {2x, y}. The price of good x...

Homework Answers