Suppose a consumer had a utility function given by: U=X0.5Y0.2U=X0.5Y0.2. If the price of Good X (Px) is $10 and the price of Good Y is $2 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $98
U = X0.5 Y0.2
MUx =
U/
X
= (0.5)X-0.5 Y0.2
MUy =
U/
Y
= 0.2 X0.5Y-0.8
MRS = MUx/MUy = (0.5X-0.5Y0.2) / (0.2 X0.5 Y-0.8)
MRS = 2.5 Y/X
Px = $10
Py = $2
Px/Py = 10/2 = 5
At utility maximizing bundle : MRS = Px/Py
2.5Y/X = 5
Y = 5X/2.5
Y = 2X
Budget constraint : PxX + Py Y = M
10X + 2Y = 98
Put Y=2X , we get:
10X + 2(2X)= 98
14X = 98
X = 7 units
Y = 2X = 2(7)= 14 units
So, the consumer will purchase 7 units of Good X and 14 units of Good Y.
Suppose a consumer had a utility function given by: U=X0.5Y0.2U=X0.5Y0.2. If the price of Good X...
Suppose a consumer had a utility function given by: U=X^0.5*Y^0.2. If the price of Good X (Px) is $10 and the price of Good Y is $2 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $98 (Round to the nearest two decimal places if necessary.)
1.Suppose a consumer had a utility function given by: U= 9X + 2Y. If the price of Good X (Px) is $8 and the price of Good Y is $4then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $32? 2. Suppose an individual had a utility function given by: U=X^4Y^0.6 Calculate this individual's Marginal Rate of Substitution (MRSxy) when they have a bundle with 3 units of Good X and 1.8...
Suppose a consumer had a utility function given by: U=X0.5Y. If the price of Good X (Px) is $1 and the price of Good Y is $2 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $24?
Suppose a consumer had a utility function given by: U=X^4*Y. If the price of Good X (Px) is $6 and the price of Good Y is $2.40 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $7.50? (Round to the nearest decimal place if necessary.)
Suppose a consumer had a utlity function given by U- X04Y02. If the price of Good X (Px) is $8 and the price of Good Y is $16 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $84? Round to the nearest decimal place if necessary) Answer Suppose an individual had a utility function given by U XY? Suppose that Bundle A contains 5 units of Good X and 5 units...
Suppose a consumer had a utility function given by: U= 9X + 4Y. If the price of Good X (Px) is $10 and the price of Good Y is $4 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $10? (Round to the nearest two decimal places if necessary.)
Suppose a consumer had a utility function given by: U = X2Y0.5. If the price of Good X (Px) is $3 and the price of Good Y is $6 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $18.75? (Round to the nearest decimal place if necessary.)
$4 then what is the Suppose a consumer had a utility function given by U-9x 2Y. If the price of Good X (Px) is $8 and the price of Good Y is utility maximizing quantity of Good X the consumer will purchase with a budget of $32? (Round to the nearest two decimal places if necessary) Answer 2 Suppose a consumer had a utility function given by Uxasy02. If the price of Good X (Px) is $10 and the price...
Suppose a consumer had a utility function given by: U= 2X + 8Y. If the price of Good X (Px) is $7 and the price of Good Y is $5 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $12? (Round to the nearest two decimal places if necessary.)
suppose a consumer had a utility function given by: U-X075 Yo.8· lf the price of Good X (Ps) is $8 and the price of Good Y is $8 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $99.20? (Round to the nearest two decimal places if necessary.)