Christine has utility given by u(x1, x2) = 1X1 + 4/X2. If P, = $10, P,...
Christine has utility given by u(x,2)- 2+4Vxz. If P $20, P2 $10, and 1- $180, find Christine's optimal consumption of good 1. (Hint: You'll need to use the 5 step method to answer this question Using the information from question 7, find Christine's optimal consumption of good 2
1.) Liz has utility given by u(x2,x1)=x1^7x2^8. If P1=$10, P2=$20, and I = $150, find Liz’s optimal consumption of good 1. (Hint: you can use the 5 step method or one of the demand functions derived in class to find the answer). 2.) Using the information from question 1, find Liz’s optimal consumption of good 2 3.) Lyndsay has utility given by u(x2,x1)=min{x1/3,x2/7}. If P1=$1, P2=$1, and I=$10, find Lyndsay’s optimal consumption of good 1. (Hint: this is Leontief utility)....
5. Anya has utility given by u(x1,x2) Anya's optimal consumption of good 1. (Hint: this is linear utility) 18х, + 9х2. If Р, 3D $5, Р2 3D $2, аnd I $20, find -- - Using the information from question 5, find Anya's optimal consumption of good 2 6. 5. Anya has utility given by u(x1,x2) Anya's optimal consumption of good 1. (Hint: this is linear utility) 18х, + 9х2. If Р, 3D $5, Р2 3D $2, аnd I $20, find...
1. (20 points) Mac has utility over x; and x2 given by u(x1, x2) = min . If P. = $1. P. = $1. and I = $100. find the value of xı* (Hint: This is Leontief utility, the kind with right-angled indifference curves) 2. (10 points) If P, = $4, P2 = $2, and I = $20, and my utility is given by u(x1, x2) = 4x1 + 3x2, find x* (Note: I'm asking for optimal consumption of Good...
(10 points) Wendy's utility over consumption bundles (x1, x2) is given by u(x1,x2) = VX1 + 21X2. If the price of good 1 is $2/unit, the price of good 2 is $1/unit and income is $120, what is Wendy's optimal consumption of Good 2? (You can use the 5 step method to solve this problem). (10 points) When u(x1, x2) = min ), at prices and income P1, P2, and I, demand for good 1 is given by xi (P1,...
Lyndsay has utility given by u(2) -min IP, P2 -S1, and l $10, find Lyndsay's optimal consumption of good1. (Hint: this is Leontief utility) x1 X2 3 7 Using the information from question 3, find Lyndsay's optimal of good 2.
Bernice has an income of 13. His utility function is given by u(x1, x2) = min(x1, x2). Let x1 be her consumption of sweat tea (in fluid ounces), and x2 is her money left for other stuff. Initially, the price of sweat tea is $2. Find her optimal choice of sweat tea and money. Then the price of sweat tea increases to $3. Find her new optimal choice. After you've done that, find the equivalent variation of the price change...
The consumer has the utility function U(x1 , x2) = (x1-2)4 (x2-3)3, subject to her budget constraint 10 = 4x1 + 3x2. Write the utility maximization of this consumer using the Lagrangian method and find the optimal value of x1 and x2.
My utility is given by u(x1, x2) = 2x194x2-2 + In(x1) + [min{x1, x2)] + 2x2 + x1!! True, False, or Cannot Be Determined: When P1 = $2,P2 = $4, and I = $100, my optimal consumption bundle is (x1,x2) = (25,15).
Lorelai's choice behavior can be represented by the utility function u(x1, 2) 0.9n(x)0.1x2. The prices of both xi 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, but at least linear in good x2) 2. Drawinwg indifference curves: you can copy down the graph on your paper using econgraphs. Set the preferences and parameters accordingly as given in the question. Click on...