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3. For each of the following situations, find the utility max- imizing basket. (a) I =...
Let basket A be (x, y) = (4, 3). For each of the following utility functions...
Let basket A be (x, y) = (4, 3). For each of the following utility functions (a-d), answer the following questions (iiv): i) Determine the utility at basket A ii) Write out the equation for the indifference curve that basket A lies on. (simplify to y equals some function of x) iii) Find 3 other points that lie on the same indifference curve as A. iv) Calculate the MRSx,y at basket A and give an economic interpretation of what the...
1.2 (10 mks each). In parts a) and b) below, assume px = $1, py =...
1.2 (10 mks each). In parts a) and b) below, assume px = $1, py = $5, I = income = $21. Solve the U-max problem for each of the following two utility functions: (a) U = xy?, x, y = 0; (b) U=x1/3y2/3, x, y 2 0; (c) now, let px = p, Py = $5, 1 = $21, find the u-max solution for U = xy?, x, y = 0; (d) let px = 1, Py = p,...
(a) 1.2 (10 mks each). In parts a) and b) below, assume px = $1, Py...
(a) 1.2 (10 mks each). In parts a) and b) below, assume px = $1, Py = $5, I = income = $21. Solve the U-max problem for each of the following two utility functions: U= xy?, x, y 2 0; (b) U = x1/3y2/3, x, y = 0; now, let px = P, Py = $5, I = $21, find the u-max solution for U = xy?, x, y 2 0; let px = 1, Py =p, I =...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X14Y34. The consumer has $24 to spend and the prices of the goods are Px S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y)-MIN(5X,Y). The consumer has S24 to spend and the prices of the goods are Px S3 and Py...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X1"Y34. The consumer has S24 to spend and the prices of the goods are Px - S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y) MIN(5X,Y). The consumer has S2 4 to spend and the prices of the goods are Px...
Suppose James derives utility from two goods {x,y}, characterised by the following utility function: $u(x, y)...
Suppose James derives utility from two goods {x,y},
characterised by the following utility function: $u(x, y) =
2sqrt{x} + y$: his wealth is w = 10 let py = 1:
(a) What is his optimal basket if px = 0.50? What is her
utility?
(b) What is his optimal basket and utility if px = 0.20?
(c) Find the substitution effect and the income
effect associated with the price change.
(d) What is the change in consumer
surplus?
Suppose Linda...
Question 1 For the following utility functions (3 pts each for a, b, and c): •...
Question 1 For the following utility functions (3 pts each for a, b, and c): • Find the marginal utility of each good at the point (5, 5) and at the point (5, 15) • Determine whether the marginal utility decreases as consumption of each good increases (i.e., does the utility function exhibit diminishing marginal utility in each good?) • Find the marginal rate of substitution at the point (5, 5) and at the point (5, 15) • Discuss how...
i need help with (b) and (c)!!! thank u!!!! Jeanette has the following utility function: U= a*In(x) + b*In(y), where...
i need help with (b) and (c)!!! thank u!!!!
Jeanette has the following utility function: U= a*In(x) + b*In(y), where a+b=1 a) For a given amount of income I, and prices Px. Py, find Jeanette's Marshallian demand functions for X and Y and her indirect utility function. (6 points) b) From now on, you can use the fact that the utility parameters are a=0.2 and b=0.8. Find the Hicksian demand functions and the corresponding expenditure function. (6 points) c) Suppose...
how to find indirect utility function here? Jeanette has the following utility function: U-ain(x) + b*In(y), where...
how to find indirect utility function here?
Jeanette has the following utility function: U-ain(x) + b*In(y), where a+b=1 a) For a given amount of income I, and prices Px, Py, find Jeanette's Marshallian demand functions for X and Y and her indirect utility function. (6 points)
1. (5 pts.) If U X13y23, M 120, Px-2, and Py-10, find the utility-maximizing combination of...
1. (5 pts.) If U X13y23, M 120, Px-2, and Py-10, find the utility-maximizing combination of X and Y using the Lagrangian multiplier. Also find the MRS and the ratio of the prices at the utility-maximizing combination. Show your work on a separate page. a. Units of X b. Units of Y c. MRS d. Px/Py
1.2 (10 mks each). In parts a) and b) below, assume px = $1, py = $5, I = income = $21. Solve the U-max problem for each of the following two utility functions: (a) U = xy?, x, y = 0; (b) U=x1/3y2/3, x, y 2 0; (c) now, let px = p, Py = $5, 1 = $21, find the u-max solution for U = xy?, x, y = 0; (d) let px = 1, Py = p,...
(a) 1.2 (10 mks each). In parts a) and b) below, assume px = $1, Py = $5, I = income = $21. Solve the U-max problem for each of the following two utility functions: U= xy?, x, y 2 0; (b) U = x1/3y2/3, x, y = 0; now, let px = P, Py = $5, I = $21, find the u-max solution for U = xy?, x, y 2 0; let px = 1, Py =p, I =...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X14Y34. The consumer has $24 to spend and the prices of the goods are Px S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y)-MIN(5X,Y). The consumer has S24 to spend and the prices of the goods are Px S3 and Py...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X1"Y34. The consumer has S24 to spend and the prices of the goods are Px - S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y) MIN(5X,Y). The consumer has S2 4 to spend and the prices of the goods are Px...
Suppose James derives utility from two goods {x,y},
characterised by the following utility function: $u(x, y) =
2sqrt{x} + y$: his wealth is w = 10 let py = 1:
(a) What is his optimal basket if px = 0.50? What is her
utility?
(b) What is his optimal basket and utility if px = 0.20?
(c) Find the substitution effect and the income
effect associated with the price change.
(d) What is the change in consumer
surplus?
Suppose Linda...
i need help with (b) and (c)!!! thank u!!!!
Jeanette has the following utility function: U= a*In(x) + b*In(y), where a+b=1 a) For a given amount of income I, and prices Px. Py, find Jeanette's Marshallian demand functions for X and Y and her indirect utility function. (6 points) b) From now on, you can use the fact that the utility parameters are a=0.2 and b=0.8. Find the Hicksian demand functions and the corresponding expenditure function. (6 points) c) Suppose...
how to find indirect utility function here?
Jeanette has the following utility function: U-ain(x) + b*In(y), where a+b=1 a) For a given amount of income I, and prices Px, Py, find Jeanette's Marshallian demand functions for X and Y and her indirect utility function. (6 points)
1. (5 pts.) If U X13y23, M 120, Px-2, and Py-10, find the utility-maximizing combination of X and Y using the Lagrangian multiplier. Also find the MRS and the ratio of the prices at the utility-maximizing combination. Show your work on a separate page. a. Units of X b. Units of Y c. MRS d. Px/Py
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