Consider a consumer with a utility function x 1 6 x 2 3. If the prices...
Consider a consumer with a utility function
x 1 6 x 2 3. If the prices for goods 1 and 2 are 5 and 15
respectively, and income is 60, what is the consumer’s optimal
consumption of good 2?
a) 6
b) 4/3
c) 15/6
d) 4
e) None of the above
Homework Answers
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Consider a consumer with a utility function
x 1 6 x 2 3. If the prices...
= 1/ 23/2. If the prices for goods 1 and 2 are, and respectively, and income is M, what is the Consider a consumer wit...
= 1/ 23/2. If the prices for goods 1 and 2 are, and respectively, and income is M, what is the Consider a consumer with a utility function consumer's optimal consumption of good 1? x1 = M/(3p2) xi = M/(482) xi = 3M/(4px) x1 = 4Mp1/(P2) None of the above Consider a consumer with a utility function y = 1/2/3/2. If the prices for goods 1 and 2 are 2 and 4 respectively, and income is 40, what is the...
Question 15 0/1 pts Consider a consumer with a utility function 11 = 1/23/2. If the...
Question 15 0/1 pts Consider a consumer with a utility function 11 = 1/23/2. If the prices for goods 1 and 2 are 2 and 4 respectively, and income is 40, what is the consumer's optimal consumption of good 1 and 2? Correct Answer > 0 x = 5; x; = 7.5 x = 2.5; x3 = 7.5 x = 5; x = 5 You Answered x* = 5;x; = 2.5 None of the above
Question 13 0/1 pts respectively, and income is M, what is the Consider a consumer with...
Question 13 0/1 pts respectively, and income is M, what is the Consider a consumer with a utility function u = 1/2 3/2. If the prices for goods 1 and 2 arep, and consumer's optimal consumption of good 1? x1 = M/(3p2) Correct Answer xi = M/(41) You Answered x1 = 3M/(41) x = 4MP1/(p2) None of the above Question 14 1/1 pts Consider a consumer with a utility function y = x1/23/2. If the prices for goods 1 and...
20. A consumer has a utility function of U = xx for good 1 and 2....
20. A consumer has a utility function of U = xx for good 1 and 2. The price of one unit of good 1 is 2 and the price of good 2 is 4 per unit. In this case, if the consumer is choosing the optimal (utility- maximising) bundle: а. x2 2.5 с. 1 d. 50 e. None of the above 21. A consumer has a utility function of U = xx3 for good 1 and 2. The price of...
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.
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices...
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m. 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods. For each of your answers in question 2, write down the consumer...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. xi = 4, = 4 b. x1 = 4,=3 c. ri = 2 = 6 d. x = 8,5 = 2 e. None of the above 6. A consumer's preferences are given by the utility function U = . The...
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y...
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y are $3 and $5, respectively, and the consumer's income is $150 . a. Find the MRS for this consumer for any given bundle (x,y) . b. Find the optimal consumption bundle for this consumer. c. Suppose the price of good x doubles. How much income is required so that the Econ 201 Beomsoo Kim Spring 2018 consumer is able to purchase...
* * 5. A consumer's preferences are given by the utility function U = x;'°*". The...
* * 5. A consumer's preferences are given by the utility function U = x;'°*". The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. X* = 4, x* = 4 b. x1 = 4, x = 3 C. x1 = 2, x = 6 d. x1 = 8, x* = 2 e. None of the above * * N * *...
13. Consider an individual with a utility function U = min{3x,, x} where x1 and x2...
13. Consider an individual with a utility function U = min{3x,, x} where x1 and x2 are the quantities of goods 1 and 2 consumed, respectively. If the prices of good 1 is $5 and the price of good 2 is $5 and the consumer's income is $60, how much of goods 1 and 2 does she buy? a. x, = 4, x, = 4 b. x, = 6,X, = 3 c. x, = 8, x, = 2 d. x,...
= 1/ 23/2. If the prices for goods 1 and 2 are, and respectively, and income is M, what is the Consider a consumer with a utility function consumer's optimal consumption of good 1? x1 = M/(3p2) xi = M/(482) xi = 3M/(4px) x1 = 4Mp1/(P2) None of the above Consider a consumer with a utility function y = 1/2/3/2. If the prices for goods 1 and 2 are 2 and 4 respectively, and income is 40, what is the...
Question 15 0/1 pts Consider a consumer with a utility function 11 = 1/23/2. If the prices for goods 1 and 2 are 2 and 4 respectively, and income is 40, what is the consumer's optimal consumption of good 1 and 2? Correct Answer > 0 x = 5; x; = 7.5 x = 2.5; x3 = 7.5 x = 5; x = 5 You Answered x* = 5;x; = 2.5 None of the above
Question 13 0/1 pts respectively, and income is M, what is the Consider a consumer with a utility function u = 1/2 3/2. If the prices for goods 1 and 2 arep, and consumer's optimal consumption of good 1? x1 = M/(3p2) Correct Answer xi = M/(41) You Answered x1 = 3M/(41) x = 4MP1/(p2) None of the above Question 14 1/1 pts Consider a consumer with a utility function y = x1/23/2. If the prices for goods 1 and...
20. A consumer has a utility function of U = xx for good 1 and 2. The price of one unit of good 1 is 2 and the price of good 2 is 4 per unit. In this case, if the consumer is choosing the optimal (utility- maximising) bundle: а. x2 2.5 с. 1 d. 50 e. None of the above 21. A consumer has a utility function of U = xx3 for good 1 and 2. The price of...
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m. 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods. For each of your answers in question 2, write down the consumer...
5. A consumer's preferences are given by the utility function U-2 2 The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. xi = 4, = 4 b. x1 = 4,=3 c. ri = 2 = 6 d. x = 8,5 = 2 e. None of the above 6. A consumer's preferences are given by the utility function U = . The...
* * 5. A consumer's preferences are given by the utility function U = x;'°*". The price of good 1 is 3 and the price of 2 is 6, while her income is 36. The utility maximising bundle for the consumer is a. X* = 4, x* = 4 b. x1 = 4, x = 3 C. x1 = 2, x = 6 d. x1 = 8, x* = 2 e. None of the above * * N * *...
13. Consider an individual with a utility function U = min{3x,, x} where x1 and x2 are the quantities of goods 1 and 2 consumed, respectively. If the prices of good 1 is $5 and the price of good 2 is $5 and the consumer's income is $60, how much of goods 1 and 2 does she buy? a. x, = 4, x, = 4 b. x, = 6,X, = 3 c. x, = 8, x, = 2 d. x,...
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