Assume U = 0.5X0.75Y2, MU,-0.375x-0.25Y, and MU,-X0.75Y. I. Draw an indifference curve for U-100. Be sure...
Assume U = 0SX0.75Y2, MUx = 0.375x-025. and MU,-X0.75Y. 1. Draw an indifference curve for U-100. Be sure to label the points where Y 2 and Y-5. Both the X and Y coordinates on these points must be clearly labeled. 2. What is the MRSxy at the points you labeled for Y 2 and Y 5? 3. what is the MRSyx at the points you labeled for Y = 2 and Y = 5? 4. How much Y does the...
Suppose an indifference curve is given by the equation U=2*C*T. Assume that initially the consumer owns the bundle C = 20, T = 2. What is the Utility value along this indifference curve? Show your calculations! Other than point, (C, T) = (20, 2), list 3 other points on this indifference curve. Graph the indifference curve including the point (C, T) = (20, 2) and the 3 points you listed in part b. Place T on the vertical axis and...
please answer all questions 2. Draw the graph of an indifference curve map for the utility function U(X,Y)= XY. Put good X on X-axis and good Y on Y-axis. Draw at least 3 indifference curves and label the utility level for each indifference curve. Explain why or why not do the indifference curves cross each other on the map.
Richie’s utility function is given by U=5X+2Y. Draw Richie’s indifference curve when U=10. What is the marginal rate of substitution of X for Y? What is the marginal rate of substitution when X=1 and Y=5? When X=2 and Y=2.5?
Question 6 (Utility). Suppose a consumer's utility function is given by U(x, x)=x7x2 Draw an indifference curve with a value of 10 and an indifference curve with a value of 16. Label two points on each indifference curve as well as the axes. a) b) What is the marginal utility with respect to xi? What is the marginal utility with respect to x? What is the
Q2) (based on textbook problem 3.19) Consider the utility function 2Vx +3v/y a) Find MU and MU b) Is the assumption that more is better satisfied for both goods? c) Does the marginal utility of each good diminish, remain constant, or increase as the consumer buys more? d) What is MR.Sa,y? Is it diminishing, constant, or increasing as the consumer sub- stitutes x for y along an indifference curve? e) On a graph with r on the horizontal axis and...
2. Janice consumes two goods, X and Y. Janice has a utility function given by the expression: U = 4x0.5y 0.5 The current prices of X and Y are $25 and $50, respectively. Janice currently has an income of $750 per time period (Put X on the horizontal axis and Y on the vertical axis). a) Is the assumption that "more is better” satisfied for both goods? b) Calculate MRSxy. Determine if it is diminishing for this utility function. c)...
For each of the following utility functions, draw an indifference map with 3 in curves. Be sure to label your axes, and label your curves as IC1, IC2, and ICs, where difference 1 U2 U (X,Y)=3X+5Y U3. (5 points each) a. U(X, Y) U(X, Y) -X2 + ln(Y) min(3X,5Y) c. d.
3) Consider the utility function U = 3FC. a. Carefully sketch the indifference curve for utility of 24. Label four market baskets on the indifference curve. (Hint: In Desmos, enter 24=3xy) b. Carefully sketch the indifference curve for utility of 48. Label four market baskets on the indifference curve. c. Which market basket gives highest utility: (0,10) or (2,8) or (5,5) or (9,2)? Rank the market baskets and identify them on your graph. 4) Consider the utility function U =...
11. Suppose u(x,y) = x"t y®, for α Ε (0, 1) (a) Draw an indifference curve and calculate the slope of the indifference curve at u(x, y)- 0 (b) Find consumer demand function.