Hans has $27 which he decides to spend on x and y. Commodity x costs $16...
Hans has $27 which he decides to spend on x and y. Commodity x costs $16 per unit and commodity y costs $10 per unit. He has the utility function U(x, y) = 5x 2y 2 and he can purchase fractional units of x and y. What is his optimal consumption bundle? Show your result on a graph.
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Hans has $27 which he decides to spend on x and y. Commodity x
costs $16...
Joel has an income of $96, which he can spend on two (normal) goods: movies and...
Joel has an income of $96, which he can spend on two (normal) goods: movies and pizzas. Each movie costs $12 and each pizza costs $8. (a) Joel is considering buying bundle A, which is 3 movies and 5 pizzas. At that bundle, his marginal rate of substitution is 3 pizzas for 2 movies. Is the proposed bundle Joel’s optimal consumption bundle? If not, explain whether and why Joel buy more or fewer of each good to increase his utility....
Alice has a fixed budget of $120 to purchase two goods. Let X and Y represent...
Alice has a fixed budget of $120 to purchase two goods. Let X and Y represent the quantity of goods X and Y purchased respectively. Price of X is $2, price of Y is $1, and her utility function is U= X2Y and her MRS = 2Y/X Write down the budget line function Write down the tangency condition Calculate the optimal consumption bundle (X= Y= ) Draw a graph to show you results (including budget line, utility, and optimal consumption...
Jeff is deciding his optimal consumption bundle, where there are two possible goods he could purchase....
Jeff is deciding his optimal consumption bundle, where there are two possible goods he could purchase. He can consume good x and good y, both of which are priced at $1. His utility function can be given by U(x,y) = 2x^2 (y^2) a.) Find his optimal consumption bundle if he has $100 to spend b.) What is his optimized utility? c.) Suppose his income doubles to $200. What are the income and substitution effects, in terms of the good x?...
4. Andy's utility is represented by the function U(X,Y) - XY. His marginal utility of X...
4. Andy's utility is represented by the function U(X,Y) - XY. His marginal utility of X is MUx = Y. His marginal utility of Y is MUY = . He has income $12. When the prices are Px - 1 and Py -1, Andy's optimal consumption bundle is X* -6 and Y' = 6. When the prices are Px = 1 and P, = 4, Andy's optimal consumption bundle is X** = 6 and Y* 1.5. Suppose the price of...
- H u y | | | | - 2. Xin is a foodie and loves to spend all his money on food(x) and drinks(Y). As we know, the pric...
- H u y | | | | - 2. Xin is a foodie and loves to spend all his money on food(x) and drinks(Y). As we know, the price of food and drinks are $8 and $3 per unit respectively. Please answer the following questions. A. Assume that Xin has 168 dollars, please write down his budget constraint and make a graph of it. Slope and intercepts have to be marked clearly. B. Xin's utility function is U =...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for lunch. As we know, he tends to consume 3 units of bread with every 2 units of ham. Suppose the price of goods are $2(X) and $7(Y) respectively. A. Write down Jason's utility function and budget constraint. B. Calculate Jason's optimal point. C. Show the optimal point in graph. From now on, Jason's preference changes but budget constraint doesn't. The new utility function is:...
1- Suppose that a firm producing commodity with the following production function: Y = 20X,X2 Then,...
1- Suppose that a firm producing commodity with the following production function: Y = 20X,X2 Then, assume that the maximum amount the firm can spend on these two inputs is $100 and price of commodities are as follow: Xi = 4, X2 = 5 a. Use Lagrange Multiplier to determine the optimal production level at this firm. b. What is the meaning of shadow price? How you can interpret it using the solution of part a? 2- Assume the following...
HW1.1 #8. Peter also likes coffee (x) with sugar (y), but his utility function is U(x,...
HW1.1 #8. Peter also likes coffee (x) with sugar (y), but his utility function is U(x, y) = 5x + 4y. Peter has purchased 4 ounces of coffee and 5 grams of sugar. Recall Peter of problem #8 of homework 1.1. His utility function is u(x, y) = 5x + 2y where x is the number of ounces of coffee and y is the quantity of sugar in grams. Let unit prices be given by Px = 6 cents, Py...
An individual only purchases two goods X and Y . The person has an income of...
An individual only purchases two goods X and Y . The person has an income of $100. The price of X is $2 per unit and the price of Y is $4 per unit. The utility function of this individual is U = 3X +5Y . This means the person has a constant marginal utility of 3 and 5 for goods X and Y , respectively. What bundle of goods X and Y should the person buy to maximize utility....
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for lunch. As we know, he tends to consume 3 units of bread with every 2 units of ham. Suppose the price of goods are $2(X) and $7(Y) respectively. A. Write down Jason's utility function and budget constraint. B. Calculate Jason's optimal point. C. Show the optimal point in graph. We were unable to transcribe this image
4. Andy's utility is represented by the function U(X,Y) - XY. His marginal utility of X is MUx = Y. His marginal utility of Y is MUY = . He has income $12. When the prices are Px - 1 and Py -1, Andy's optimal consumption bundle is X* -6 and Y' = 6. When the prices are Px = 1 and P, = 4, Andy's optimal consumption bundle is X** = 6 and Y* 1.5. Suppose the price of...
- H u y | | | | - 2. Xin is a foodie and loves to spend all his money on food(x) and drinks(Y). As we know, the price of food and drinks are $8 and $3 per unit respectively. Please answer the following questions. A. Assume that Xin has 168 dollars, please write down his budget constraint and make a graph of it. Slope and intercepts have to be marked clearly. B. Xin's utility function is U =...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for lunch. As we know, he tends to consume 3 units of bread with every 2 units of ham. Suppose the price of goods are $2(X) and $7(Y) respectively. A. Write down Jason's utility function and budget constraint. B. Calculate Jason's optimal point. C. Show the optimal point in graph. From now on, Jason's preference changes but budget constraint doesn't. The new utility function is:...
1- Suppose that a firm producing commodity with the following production function: Y = 20X,X2 Then, assume that the maximum amount the firm can spend on these two inputs is $100 and price of commodities are as follow: Xi = 4, X2 = 5 a. Use Lagrange Multiplier to determine the optimal production level at this firm. b. What is the meaning of shadow price? How you can interpret it using the solution of part a? 2- Assume the following...
1. Jason has $60 and wants to spend all his money on bread(X) and ham(Y) for lunch. As we know, he tends to consume 3 units of bread with every 2 units of ham. Suppose the price of goods are $2(X) and $7(Y) respectively. A. Write down Jason's utility function and budget constraint. B. Calculate Jason's optimal point. C. Show the optimal point in graph. We were unable to transcribe this image
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