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4a. Draw an indifference map for person J of five indifference curves for good x1 and...
(1 point) Suppose that you have two consumption choices: good X, and good Y. An indifference...
(1 point) Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set of consumption choices with a CONSTANT utility. For example if consuming 10X and 6Y gives me the same utility as consuming 11X and 5Y, then these are both points on the same indifference curve. An indifference map is the set of all indifference curves with EVERY given utility. Consider the indifference map given by: U = XY, where U is...
For each of the following utility functions, draw an indifference map with 3 in curves. Be...
For each of the following utility functions, draw an indifference map with 3 in curves. Be sure to label your axes, and label your curves as IC1, IC2, and ICs, where difference 1 U2 U (X,Y)=3X+5Y U3. (5 points each) a. U(X, Y) U(X, Y) -X2 + ln(Y) min(3X,5Y) c. d.
5. Draw out examples of each of the following indifference curves: imperfect substitutes, perfect substitutes, and...
5. Draw out examples of each of the following indifference curves: imperfect substitutes, perfect substitutes, and perfect complements. 6. Jody enjoys having exactly 1 teaspoon of sugar with every cup of coffee she has. What does this say about her indifference curves between the two goods? What happens to her utility level when she is given 5 teaspoons of sugar with one coffee? (Just an explanation) 7. Jay’s Utility function is given by U(x,z) = 3x10.2 x20.8 and P1=$2 and...
7) The picture below shows several indifference curves of a consumer and several budget lines: X2...
7) The picture below shows several indifference curves of a consumer and several budget lines: X2 1 2 3 4 5 6 7 8 9 10 11 12 Note that the lines passing through A, C, and E are parallel. Also the lines passing through B, D, and F are parallel. Move over at each bundle labeled with a letter, the budget line and indifference curve passing through that bundle are tangent. The consumption levels at each of the labeled...
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2....
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of...
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of good 1 and good 2 are p1 = P2 = 4. The consumer's income is m = 120. (a) Find the consumer's preferred bundle. (b) Draw the consumer's budget line. (c) On the same graph, indicate the consumer's preferred bundle and draw the indifference curve through it. (d) Now suppose that the consumer gets a discount on good 1: each unit beyond the 4th...
The indifference curves in the figure below illustrate Alice's preferences over weekly leisure I and weekly...
The indifference curves in the figure below illustrate Alice's preferences over weekly leisure I and weekly consumption c. Alice has 100 hours each week to allocate between work and leisure activities. If Alice works, she has no nonlabor income, but she earns $10 per hour. (The price of consumption is $1 per unit.) If she doesn't work, she receives government aid in the form of a $400 weekly cash grant. EFF Consumption 1400 40 80 20 60 100 120 160...
The indifference curves in the figure below illustrate Alice's preferences over weekly leisure I and weekly...
The indifference curves in the figure below illustrate Alice's
preferences over weekly leisure I and weekly consumption c. Alice
has 100 hours each week to allocate between work and leisure
activities. If Alice works, she has no nonlabor income, but she
earns $10 per hour. (The price of consumption is $1 per unit.) If
she doesn't work, she receives government aid in the form of a $400
weekly cash grant.
Which indifference curve do we use to determine Alice's
reservation...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of s300, facing prices px 4 and py sio 30 22.5 0 35 43 75 90 a. How much X does Zog consume? b. If the price of X falls to s2.50, while income and the price of Y stay constant, how much X will Zog consume? c. How much income must be taken away...
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices...
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices of both x1 and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set but at least linear in good x2) the preferences and parameters accordingly as given in the question. Click...
(1 point) Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set of consumption choices with a CONSTANT utility. For example if consuming 10X and 6Y gives me the same utility as consuming 11X and 5Y, then these are both points on the same indifference curve. An indifference map is the set of all indifference curves with EVERY given utility. Consider the indifference map given by: U = XY, where U is...
For each of the following utility functions, draw an indifference map with 3 in curves. Be sure to label your axes, and label your curves as IC1, IC2, and ICs, where difference 1 U2 U (X,Y)=3X+5Y U3. (5 points each) a. U(X, Y) U(X, Y) -X2 + ln(Y) min(3X,5Y) c. d.
7) The picture below shows several indifference curves of a consumer and several budget lines: X2 1 2 3 4 5 6 7 8 9 10 11 12 Note that the lines passing through A, C, and E are parallel. Also the lines passing through B, D, and F are parallel. Move over at each bundle labeled with a letter, the budget line and indifference curve passing through that bundle are tangent. The consumption levels at each of the labeled...
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
Consider a consumer with a utility function u(x1, x2) = min{21, 222}. Suppose the prices of good 1 and good 2 are p1 = P2 = 4. The consumer's income is m = 120. (a) Find the consumer's preferred bundle. (b) Draw the consumer's budget line. (c) On the same graph, indicate the consumer's preferred bundle and draw the indifference curve through it. (d) Now suppose that the consumer gets a discount on good 1: each unit beyond the 4th...
The indifference curves in the figure below illustrate Alice's preferences over weekly leisure I and weekly consumption c. Alice has 100 hours each week to allocate between work and leisure activities. If Alice works, she has no nonlabor income, but she earns $10 per hour. (The price of consumption is $1 per unit.) If she doesn't work, she receives government aid in the form of a $400 weekly cash grant. EFF Consumption 1400 40 80 20 60 100 120 160...
The indifference curves in the figure below illustrate Alice's
preferences over weekly leisure I and weekly consumption c. Alice
has 100 hours each week to allocate between work and leisure
activities. If Alice works, she has no nonlabor income, but she
earns $10 per hour. (The price of consumption is $1 per unit.) If
she doesn't work, she receives government aid in the form of a $400
weekly cash grant.
Which indifference curve do we use to determine Alice's
reservation...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of s300, facing prices px 4 and py sio 30 22.5 0 35 43 75 90 a. How much X does Zog consume? b. If the price of X falls to s2.50, while income and the price of Y stay constant, how much X will Zog consume? c. How much income must be taken away...
Question 2: Lorelai's choice behavior can be represented by the utility function u(x1, 2)0.9Inx)0.1x2 The prices of both x1 and x2 are $5 and she has an income of $40. 1. What preference does this utility function represent? (Hint: the utility is function is not linear, 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set but at least linear in good x2) the preferences and parameters accordingly as given in the question. Click...
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