Homework Answers
A consumer has four consumption bundles available to them, these are W, X, Y, and Z. The preference of the consumer is such that “W > X” and “X > Y” implied “W > Y”. We have also given “Y is indifferent to Z”, and “W > Y” implied “W > Z”.
So, the correct option is “B” that is “W > Z”.
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A consumer has four consumption bundles available to them, labeled W, X, Y, and Z. the...
Utility maximization with more than two goods Suppose that there four goods Q, R, X and Y , avail...
Utility maximization with more than two goods Suppose that there four goods Q, R, X and Y , available in arbitrary non-negative quantities (so the the consumption set is R 4 +). A typical consumption bundle is therefore a vector (q, r, x, y), where q ≥ 0 is the quantity of good Q, r ≥ 0 is the quantity of good R, x ≥ 0 is the quantity of good X, and y ≥ 0 is the quantity of...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r, y)- .5,2 where denotes the quantity of good X and y denotes the quantity of good Y. The current market price for X is px 10 while the market price for Y is Pr = $5. Sally's current income is $500. (a) Write the expression for Sally's budget constraint. (1 point) (b) Find the optimal consumption bundle that Sally will...
8) CHALLENGE QUESTION A probability experiment has exactly four mutually exclusive outcomes: W,X,Y & Z. The...
8) CHALLENGE QUESTION A probability experiment has exactly four mutually exclusive outcomes: W,X,Y & Z. The following is true: • P(W) = 4P(X) • P(X) = P(Y) - P(Z) • P(W) = P(X) + P(Y) + 5P(Z) Find the four probabilities P(W), P(X), P(Y), P(Z)
Suppose that there two goods X and Y, available in arbitrary non- negative quantities (so the...
Suppose that there two goods X and Y, available in arbitrary non- negative quantities (so the the consumption set is R2). The consumer has preferences over consumption bundles that are strongly monotone, strictly convex, and represented by the following (differentiable) utility function: u(x, y)-y+2aVT, where z is the quantity of good X, and y is the quantity of good Y, and a 20 is a utility parameter The consumer has strictly positive wealth w > 0. The price of good...
A consumer of two goods (X and Y) has the following utility function: U(x,y)=xy-ay^2, whre x>=0...
A consumer of two goods (X and Y) has the following utility function: U(x,y)=xy-ay^2, whre x>=0 and y>=0 and a>0 is a parameter. (a) Are there bundles for which one of the goods is actually a "bad" (in the sense that consuming more of it reduces utility)? (b) Find the MRS.
Suppose that there two goods, X and Y , available in arbitrary nonnegative quantities (so the the...
Suppose that there two goods, X and Y , available in arbitrary nonnegative quantities (so the the consumption set is R 2 +). The consumer has preferences over consumption bundles that are monotone, strictly convex, and represented by the following (differentiable) utility function: u(x, y) = α √ x + (1 − α) √ y, where x is the quantity of good X, y is the quantity of good Y , and α ≥ 0 is a utility parameter. The...
5] (2) GIVEN: a> 0,0# {(x, y, z) z a"-x'-y") W is the solid region of...
5] (2) GIVEN: a> 0,0# {(x, y, z) z a"-x'-y") W is the solid region of R' that is below 2 and above the xy- plane. W has constant density,8 and the mass of W is M, m(W) M FIND: The moment of inertia, I, of W with respect to the z- axis, express 2 I in terms of M and a without 8
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...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B = (5,6) C = (5,9) D = (10,3) E =(1,4) F =(6,5) G=(2,8) H =(7,8) (a) Come up with an example of a utility function that will produce the following order of preference for the bundles, where H is most preferred, A and G are equally preferred, and E is least preferred. H , C , B , F , A = G ,...
3. Consider a consumer who has well-behaved preferences over leisure (L) and consumption (x) They have...
3. Consider a consumer who has well-behaved preferences over leisure (L) and consumption (x) They have nonlabor income m and have 24 hours in the day that must be divided between leisure and working. They are initially paid a wage w for each hour of work. The price of x is 1 (a) Suppose they optimally choose to work 8 hours. Draw the consumer's budget set and an indifference curve showing this situation. (b) Now suppose that they are paid...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r, y)- .5,2 where denotes the quantity of good X and y denotes the quantity of good Y. The current market price for X is px 10 while the market price for Y is Pr = $5. Sally's current income is $500. (a) Write the expression for Sally's budget constraint. (1 point) (b) Find the optimal consumption bundle that Sally will...
8) CHALLENGE QUESTION A probability experiment has exactly four mutually exclusive outcomes: W,X,Y & Z. The following is true: • P(W) = 4P(X) • P(X) = P(Y) - P(Z) • P(W) = P(X) + P(Y) + 5P(Z) Find the four probabilities P(W), P(X), P(Y), P(Z)
Suppose that there two goods X and Y, available in arbitrary non- negative quantities (so the the consumption set is R2). The consumer has preferences over consumption bundles that are strongly monotone, strictly convex, and represented by the following (differentiable) utility function: u(x, y)-y+2aVT, where z is the quantity of good X, and y is the quantity of good Y, and a 20 is a utility parameter The consumer has strictly positive wealth w > 0. The price of good...
5] (2) GIVEN: a> 0,0# {(x, y, z) z a"-x'-y") W is the solid region of R' that is below 2 and above the xy- plane. W has constant density,8 and the mass of W is M, m(W) M FIND: The moment of inertia, I, of W with respect to the z- axis, express 2 I in terms of M and a without 8
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...
3. Consider a consumer who has well-behaved preferences over leisure (L) and consumption (x) They have nonlabor income m and have 24 hours in the day that must be divided between leisure and working. They are initially paid a wage w for each hour of work. The price of x is 1 (a) Suppose they optimally choose to work 8 hours. Draw the consumer's budget set and an indifference curve showing this situation. (b) Now suppose that they are paid...
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