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10. For this question, use the utility function U(X,Y)= In(X) + 3 In(Y). (a) (2 Points)...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
Question: Suppose your utility function from a given bundle of goods, (x.y), isWex.y) (y) (a) Suppose...
Question: Suppose your utility function from a given bundle of goods, (x.y), isWex.y) (y) (a) Suppose y 1. Make a table showing your utility for x 1, x-2x-3' and x (b) Is utility increasing from more units of x? (c) Is marginal utility increasing from more units of x? (d) Derive the equation describing the marginal utility for x, Mu (e) Plot a representative indifference curve that includes 3 bundles of goods of your choosing. Include on your graph the...
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that...
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that "more is better” satisfied for both goods? 2) What is MRS, for this utility function? 3) Is the marginal rate of substitution diminishing, constant, or increasing in x as the consumer substitutes x for y along an indifference curve? 4) Will the indifference curve corresponding to this utility function be convex to the origin, concave to the origin, or straight lines? Explain.
3. Suppose the utility function for two goods, x and y, is: U = U(x,y) =...
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...
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal...
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between x and y as she tries to increase utility by, for example, consuming more when their income increases?
Consider the following utility function of 2 goods, x and y: U(x,y)= - [(x-10)2 + (y-10)2];...
Consider the following utility function of 2 goods, x and y: U(x,y)= - [(x-10)2 + (y-10)2]; x,y≥0 The prices of good x and y is 10 and 20 respectively. The income is denoted by m. a. Draw the indifference curves for the utility function and use arrows to explain in which direction utility increases or decreases. b. Find the consumption bundle that maximizes utility for the consumer. c. Find the Engel curve.
QUESTION; Given Biwei’s utility function U=4XY, where X is consumption of beer and Y is consumption...
QUESTION; Given Biwei’s utility function U=4XY, where X is consumption of beer and Y is consumption of pizza. For this utility function, the marginal utility of X is MUx = 4Y; the marginal utility of Y is MUY = 4X. 1) Suppose Y = 3. Calculate Biwei’s utility for X = 2, 3, 10, and 11. For a given level of Y, does good X display diminishing marginal utility? 2) Suppose X = 3. Calculate Biwei’s utility for Y =...
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...
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of...
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
Question: Suppose your utility function from a given bundle of goods, (x.y), isWex.y) (y) (a) Suppose y 1. Make a table showing your utility for x 1, x-2x-3' and x (b) Is utility increasing from more units of x? (c) Is marginal utility increasing from more units of x? (d) Derive the equation describing the marginal utility for x, Mu (e) Plot a representative indifference curve that includes 3 bundles of goods of your choosing. Include on your graph the...
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that "more is better” satisfied for both goods? 2) What is MRS, for this utility function? 3) Is the marginal rate of substitution diminishing, constant, or increasing in x as the consumer substitutes x for y along an indifference curve? 4) Will the indifference curve corresponding to this utility function be convex to the origin, concave to the origin, or straight lines? Explain.
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...
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between x and y as she tries to increase utility by, for example, consuming more when their income increases?
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?
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