Homework Answers
Since his love towards burgers are more, for one burger it equals to more amount of hotdogs. Which means rate of substitution of burgers to hotdogs means one burger more hotdogs. Similarly more hotdogs one burgers or the Marginal utility of one burger is high when compared to that of hot dog which means the ratio of marginal utility of burger to hotdog is greater than one
Therefore, the given statement is true.
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5. (T/F) Jack likes hotdogs, but he absolutely LOVES burgers. His marginal rate of...
3. Craig likes both apples and bananas. He consumes nothing else. The consumption bundle where Craig...
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John has preferences for food F and clothing C described by a utility function U(F,C) =...
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i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph...
i) Find the Marginal Rate of Substitution at the given bundle,
and ii) use a graph to indicate the given bundle,
and accurately draw the indifference curve that
goes through that bundle. Be sure to label you graph carefully and
accurately. In all cases put the amount of good X on the horizontal
axis, and the amount of good Y on the vertical axis.
c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
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1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution...
1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X on the horizontal axis, and the amount of good Y on the vertical axis. a) The consumers utility function is given...
read before solving thanks e Betty her brother, Bob enjoys his burgers only with fries. He...
read before solving thanks
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4. Andy's utility is represented by the function U(X,Y) - XY. His marginal utility of X...
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Doug lives for two periods. In the first period of his life he earns income Y1....
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3. Craig likes both apples and bananas. He consumes nothing else. The consumption bundle where Craig consumes x, bushels of apples per year and Xg bushels of bananas per year is written as (X4, Xg). Last year, Craig consumed 20 bushels of apples and 5 bushels of bananas. It happens that the set of consumption bundles (XA, Xg) such that Craig is indifferent between (XA, Xg) and 0,5) is the set of all bundles such that Xg = 100/XA. The...
4. Charlie likes both apples and bananas. He consumes nothing else. Charlie consumes x bushels of apples per year and x bushels of bananas per year. Suppose that Charlie's preference is represented in the following utility function: u(x,,Xy)-x,Xy . Suppose that the price of apples is S1, the price of bananas is S2, and Charlie's income is $40. (14 points) a. Draw Charlie's budget line. Plot a few points on the indifference curve that gives Charlie a utility of 150...
John has preferences for food F and clothing C described by a utility function U(F,C) = min (F, 2C). Suppose that food costs $1 a unit and that clothing costs $2 a unit. John has $12 to spend on food and clothing. (10 pts.) a) On a graph, draw indifference curves corresponding to u = 6, u = 10, u = 14. Make sure to label coordinates clearly. Using the graph, find the optimal choice of food and clothing. Let...
The Implicit Function Theorem and the Marginal Rate of Substitution (4 Points) 3 An important result from multivariable calculus is the implicit function theorem which states that given a function f (x,y), the derivative of y with respect to a is given by where of/bx denotes the partial derivative of f with respect to a and af/ay denotes the partial derivative of f with respect to y. Simply stated, a partial derivative of a multivariable function is the derivative of...
i) Find the Marginal Rate of Substitution at the given bundle,
and ii) use a graph to indicate the given bundle,
and accurately draw the indifference curve that
goes through that bundle. Be sure to label you graph carefully and
accurately. In all cases put the amount of good X on the horizontal
axis, and the amount of good Y on the vertical axis.
c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X on the horizontal axis, and the amount of good Y on the vertical axis. a) The consumers utility function is given...
read before solving thanks
e Betty her brother, Bob enjoys his burgers only with fries. He always consumes both together. Which of the following best describes his preferences a. U(H,F) = 1010 b. U(H,F) = min{H,2F) C. U(H,F) = H+ 4.2F VI. A burger costs $5 (P) while a personal pan pizza costs $10 (Po). Your total income (1) is $100. 1. Write the equation for the budget constraint. (1 point) 2. Draw the budget constraint and label it AB...
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