Homework Answers
Option A is true as B and C offers same level of utility as they are on the same indifference curve. As it is higher than indifference curve with point A on it, it gives higher utility.
Option B is incorrect as point D and F is not affordable as it is beyond the budget line.
Option C is correct as points D and E gives same level of utility as they are on the same indifference curve and point D is not affordable.
Option D is correct as it gives same level of utility on points D / E / F as they are on the same indifference curve.
Option B is true.
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Given the budget constraint in the diagram, which of the following statements is false? O Consumption...
optimal consumption & budget constraint
Q1. A consumer chooses an optimal consumption point where the A) marginal rate of substitution equals the relative price ratio. B) slope of the indifference curve exceeds the slope of the budget constraint C) ratios of all the marginal utilities are equal D) All of the above are correct. Q2. A budget constraint illustrates the A) prices that a consumer chooses to pay for products he consumes. B) consumption bundles that give a consumer equal satisfaction. C) purchases made by consumers. D) consumption bundles that a consumer can afford
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download)...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H)...
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H) for a consumer who consumes Fish and/or Chips. Which of the following illustrates how the budget constraint will change if the price of Fish were to decrease? Fish Fish D B c A 0 Chips Chips Fish Fish G H F 0 Chips Chips Cto D D to C Fto E E to F Question 20 1 pts Refer to the graph below where...
ds/ECN100 Practice_Wk2,ConsumerMaxProblem.pdf Courses DocsHulu Xfinity Stream SHOWTIME H Netflix FAFSA My Sessions ECN100 PRACTICE PROBLEM FOR...
ds/ECN100 Practice_Wk2,ConsumerMaxProblem.pdf Courses DocsHulu Xfinity Stream SHOWTIME H Netflix FAFSA My Sessions ECN100 PRACTICE PROBLEM FOR WEEK 2 Question: Consider the utility function y. (a) Make a table of 4 (x, y) consumption bundles that all yield a utility of 4 (b) Plot the four points on a graph with x on the x-axis and y on the y-axis. Draw a smooth line combining the points. (c) what is the marginal utility of x? what is the marginal utility of...
(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function:...
(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function: U (X, Y) = X°.270.3 Budget Constraint: I = XP, + YP, a. What is the consumer's marginal utility for X and for Y? b. Suppose the price of X is equal to 4 and the price of Y equal to 6. What is the utility maximizing proportion of X and Y in his consumption? {construct the budget constraint) c. If the total amount...
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing...
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing the utility function U (r1, T)= In(xr2), subject to the budget constraint pi 1 + p2 2 900 (a) (3 points) Write out the Lagrangian function for the consumer's problem (b) (6 points) Write out the system of first-order conditions for the consumer's problem (e) (6 points) Solve the system of first-order conditions to find the optimal values of r and r2....
budget constraint
When the indifference curve is tangent to the budget constraint,a.indifference curves are likely to intersect.b.a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes.c.the consumer is likely to be at a sub-optimal level of consumption.d.income is at its optimum for a consumer.
WID Name: 6) Refer to the diagram on the right. Which of the following statements is...
WID Name: 6) Refer to the diagram on the right. Which of the following statements is correct? A) This individual receives no satisfaction from Good A. B) This individual receives no satisfaction from Good B.2 C) This individual will only consume A and B in fixed proportions. D) none of the above Good B Increasing → utility Good A 7) Fisher's utility function for trout (T) and salmon (S) is given by U-ST, where the Mur-S and MUs = T....
01 Question (3 points) e See page 74 Using the diagram below, answer the following questions....
01 Question (3 points) e See page 74 Using the diagram below, answer the following questions. Both x1 and x2 are "goods." Indifference Curves Budget Line V 1st attempt Part 1 (1 point) See Hint Which of the labeled bundles on the diagram are affordable (i.e., would not cost more than the consumer's income)? Choose one or more: ОА 0 0 0 0 Part 2 (1 point) See Hint Which of the labeled bundles would be the most preferred bundle...
(a) Write down Jeremy's budget constraint (a formula) and plot all Jeremy's affordable bundles in the...
(a) Write down Jeremy's budget constraint (a formula) and plot all Jeremy's affordable bundles in the graph (his budget set). Find the slope of the budget line (number). Give an economic interpretation for the slope of the budget line (one sentence) (b) Jeremy's utility function is given by U(zi,T2) = V(inx1 +1nT2)2 + 7. Propose a simpler utility function that represents the same preferences (give a formula). Explain why your utility represents the same preferences (one sentence) (c) Plot Jeremy's...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H) for a consumer who consumes Fish and/or Chips. Which of the following illustrates how the budget constraint will change if the price of Fish were to decrease? Fish Fish D B c A 0 Chips Chips Fish Fish G H F 0 Chips Chips Cto D D to C Fto E E to F Question 20 1 pts Refer to the graph below where...
ds/ECN100 Practice_Wk2,ConsumerMaxProblem.pdf Courses DocsHulu Xfinity Stream SHOWTIME H Netflix FAFSA My Sessions ECN100 PRACTICE PROBLEM FOR WEEK 2 Question: Consider the utility function y. (a) Make a table of 4 (x, y) consumption bundles that all yield a utility of 4 (b) Plot the four points on a graph with x on the x-axis and y on the y-axis. Draw a smooth line combining the points. (c) what is the marginal utility of x? what is the marginal utility of...
(10 Question 1: marks) Given is the Total Utility Function along with Budget Constraint: Utility Function: U (X, Y) = X°.270.3 Budget Constraint: I = XP, + YP, a. What is the consumer's marginal utility for X and for Y? b. Suppose the price of X is equal to 4 and the price of Y equal to 6. What is the utility maximizing proportion of X and Y in his consumption? {construct the budget constraint) c. If the total amount...
Each individual consumer takes the prices as given and chooses her consumption bundle, (r, 2) R, by maximizing the utility function U (r1, T)= In(xr2), subject to the budget constraint pi 1 + p2 2 900 (a) (3 points) Write out the Lagrangian function for the consumer's problem (b) (6 points) Write out the system of first-order conditions for the consumer's problem (e) (6 points) Solve the system of first-order conditions to find the optimal values of r and r2....
WID Name: 6) Refer to the diagram on the right. Which of the following statements is correct? A) This individual receives no satisfaction from Good A. B) This individual receives no satisfaction from Good B.2 C) This individual will only consume A and B in fixed proportions. D) none of the above Good B Increasing → utility Good A 7) Fisher's utility function for trout (T) and salmon (S) is given by U-ST, where the Mur-S and MUs = T....
01 Question (3 points) e See page 74 Using the diagram below, answer the following questions. Both x1 and x2 are "goods." Indifference Curves Budget Line V 1st attempt Part 1 (1 point) See Hint Which of the labeled bundles on the diagram are affordable (i.e., would not cost more than the consumer's income)? Choose one or more: ОА 0 0 0 0 Part 2 (1 point) See Hint Which of the labeled bundles would be the most preferred bundle...
(a) Write down Jeremy's budget constraint (a formula) and plot all Jeremy's affordable bundles in the graph (his budget set). Find the slope of the budget line (number). Give an economic interpretation for the slope of the budget line (one sentence) (b) Jeremy's utility function is given by U(zi,T2) = V(inx1 +1nT2)2 + 7. Propose a simpler utility function that represents the same preferences (give a formula). Explain why your utility represents the same preferences (one sentence) (c) Plot Jeremy's...
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