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7. Mark has linear preferences over plain yogurt and hamburgers described by, U = 4H+ Y,...
Suppose that Jessica has income Y and has preferences over hamburgers and movie tickets. Her budget...
Suppose that Jessica has income Y and has preferences over hamburgers and movie tickets. Her budget constraint is: Y = Ph*h+Pm*m. Where Ph and Pm denote the price of hamburgers and movie tickets and h and m their quantity. Assume that Jessica's income is equal to $400 and that each hamburger costs $4 and each ticket costs $8. Draw the budget constraint as well as an indifference curve that satisfies the condition for utility maximization. Please fully label the graph....
2. Zhixiu has the following linear preferences over coffee (x) and candy (y): u(x, y) =...
2. Zhixiu has the following linear preferences over coffee (x) and candy (y): u(x, y) = 2x+4y (a) Graph the indifference curves for Zhixiu that represent each of the following utility levels: 10, 20, 40, and 60. (You should be drawing 4 indifference curves, make sure to label with one represents which utility level) Make sure to show your calculations for how you identified the equation of the indifference curves.(4 points) (b) Setup Zhixiu's utility maximization problem with a general...
2. Sandra has the following preferences over cookies (x) and tea (y) (x,y) = min(3x, 2y)...
2. Sandra has the following preferences over cookies (x) and tea (y) (x,y) = min(3x, 2y) (a) Graph Sandra's indifference curves that go through points (2,3), (4,6), (6,9), (8,12). Be sure to label the axis and the utility levels of the indifference curves. (Hint: You should be graphing 4 indifference curves) (10 points) (b) On the same graph above, draw a budget constraint where pe=2.py=2 m = 20. (Note, careful attention to precise graphing here will help in partc.) (4...
Long Question #2 Consider preferences over food and housing represented by the utility function U F2/3H1/3...
Long Question #2 Consider preferences over food and housing represented by the utility function U F2/3H1/3 A. Let Income 1200, PE 2 and PH6. Find the quantity demanded of housing and food. Graph the budget constraint and the optimal bundle that you found. Make sure to include an indifference curve. Let the price of food increase to 4. Add the new budget constraint, find the new optimal bundle and add it to your graph. B.
3) Suppose that you have the following utility function: U(x,y)=x04 0:6. The price of x is...
3) Suppose that you have the following utility function: U(x,y)=x04 0:6. The price of x is $6 and the price of y is $3. You have $100 to spend. a. Find the utility maximizing quantity of x and y. b. Plot the budget constraint and show the optimal x and y on their indifference curve on the graph.
2. (24 points) Suppose a consumer has preferences represented by the utility function U(X,Y)- X2Y Suppose...
2. (24 points) Suppose a consumer has preferences represented by the utility function U(X,Y)- X2Y Suppose Py, and the consumer has $300 to spend. Draw the Price-Consumption Curve for this consumer for income values Px-1, Px 2, and Px- 5. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through...
1. Sally has preferences represented by the utility function UC, M) = 3 + 61rC M, where C is coffee and M is meals....
1. Sally has preferences represented by the utility function UC, M) = 3 + 61rC M, where C is coffee and M is meals. Her income is S100, and she pays $2 per coffee and S10 per meal a. Distinguish (the concepts of) diminishing marginal rate of substitution from diminishing marginal uty Your answer does not have to be specific to Sally's preferences. (4 points) Use the Lagrangian method to derive Sally's utility maximizing bundle given her budget constraint. Circle...
3. A consumer's preferences over a and y are given by the utility function u(x,y) -...
3. A consumer's preferences over a and y are given by the utility function u(x,y) - 2vr 2/y. The individual's income is I $100. The price of a unit of good c is $2, while the price of a unit of good y is S1. a) Graphically describe: i. the consumer's preferences for r and y ii. the budget constraint (b) Find the optimal x that the consumer would choose. You may assume (c) What is the consumer's MRS at...
8. Edna's preferences over romantic comedes zı and horror flicks z2 is given by u =エ122,...
8. Edna's preferences over romantic comedes zı and horror flicks z2 is given by u =エ122, which implies MU = z2 and MUr2 = zł. The prices of each are P1 and P2 per movie. Edna's monthly budget for movies is n (a) Solve algebraically for Edna's ordinary demand for romantic comedies P,2,) and for horror flicks = z2(P1,P2, m). The equations to be solved include丑= PL and m = p12 1 +P2X2. エ1 l mark (b) Evaluate these at...
2. Mike's preferences are represented by the utility function U(A, B) A+2B. He has an income...
2. Mike's preferences are represented by the utility function U(A, B) A+2B. He has an income of S20. Consider each of the following combination of prices of goods. On the same graph, (i) graph a family of indifference curves for the consumer, (ii) graph the budget lines for each combination of prices, (iii) calculate and label the optimal consumption choice(s) for each combination of prices, and (iv) calculate the utility Mike derives from consuming the optimal consumption choice. bananas 20...
2. Zhixiu has the following linear preferences over coffee (x) and candy (y): u(x, y) = 2x+4y (a) Graph the indifference curves for Zhixiu that represent each of the following utility levels: 10, 20, 40, and 60. (You should be drawing 4 indifference curves, make sure to label with one represents which utility level) Make sure to show your calculations for how you identified the equation of the indifference curves.(4 points) (b) Setup Zhixiu's utility maximization problem with a general...
2. Sandra has the following preferences over cookies (x) and tea (y) (x,y) = min(3x, 2y) (a) Graph Sandra's indifference curves that go through points (2,3), (4,6), (6,9), (8,12). Be sure to label the axis and the utility levels of the indifference curves. (Hint: You should be graphing 4 indifference curves) (10 points) (b) On the same graph above, draw a budget constraint where pe=2.py=2 m = 20. (Note, careful attention to precise graphing here will help in partc.) (4...
Long Question #2 Consider preferences over food and housing represented by the utility function U F2/3H1/3 A. Let Income 1200, PE 2 and PH6. Find the quantity demanded of housing and food. Graph the budget constraint and the optimal bundle that you found. Make sure to include an indifference curve. Let the price of food increase to 4. Add the new budget constraint, find the new optimal bundle and add it to your graph. B.
3) Suppose that you have the following utility function: U(x,y)=x04 0:6. The price of x is $6 and the price of y is $3. You have $100 to spend. a. Find the utility maximizing quantity of x and y. b. Plot the budget constraint and show the optimal x and y on their indifference curve on the graph.
2. (24 points) Suppose a consumer has preferences represented by the utility function U(X,Y)- X2Y Suppose Py, and the consumer has $300 to spend. Draw the Price-Consumption Curve for this consumer for income values Px-1, Px 2, and Px- 5. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through...
1. Sally has preferences represented by the utility function UC, M) = 3 + 61rC M, where C is coffee and M is meals. Her income is S100, and she pays $2 per coffee and S10 per meal a. Distinguish (the concepts of) diminishing marginal rate of substitution from diminishing marginal uty Your answer does not have to be specific to Sally's preferences. (4 points) Use the Lagrangian method to derive Sally's utility maximizing bundle given her budget constraint. Circle...
3. A consumer's preferences over a and y are given by the utility function u(x,y) - 2vr 2/y. The individual's income is I $100. The price of a unit of good c is $2, while the price of a unit of good y is S1. a) Graphically describe: i. the consumer's preferences for r and y ii. the budget constraint (b) Find the optimal x that the consumer would choose. You may assume (c) What is the consumer's MRS at...
8. Edna's preferences over romantic comedes zı and horror flicks z2 is given by u =エ122, which implies MU = z2 and MUr2 = zł. The prices of each are P1 and P2 per movie. Edna's monthly budget for movies is n (a) Solve algebraically for Edna's ordinary demand for romantic comedies P,2,) and for horror flicks = z2(P1,P2, m). The equations to be solved include丑= PL and m = p12 1 +P2X2. エ1 l mark (b) Evaluate these at...
2. Mike's preferences are represented by the utility function U(A, B) A+2B. He has an income of S20. Consider each of the following combination of prices of goods. On the same graph, (i) graph a family of indifference curves for the consumer, (ii) graph the budget lines for each combination of prices, (iii) calculate and label the optimal consumption choice(s) for each combination of prices, and (iv) calculate the utility Mike derives from consuming the optimal consumption choice. bananas 20...
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