Richie’s utility function is given by U=5X+2Y. Draw Richie’s indifference curve when U=10. What is the...
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?
Homework Answers
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Richie’s utility function is given by
U=5X+2Y.
Draw Richie’s indifference curve when U=10.
What is the...
Question 6 (Utility). Suppose a consumer's utility function is given by U(x, x)=x7x2 Draw an indifference...
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
1.Suppose a consumer had a utility function given by: U= 9X + 2Y. If the price...
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...
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2....
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that...
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that "more is better” satisfied for both goods? 2) What is MRS, for this utility function? 3) Is the marginal rate of substitution diminishing, constant, or increasing in x as the consumer substitutes x for y along an indifference curve? 4) Will the indifference curve corresponding to this utility function be convex to the origin, concave to the origin, or straight lines? Explain.
.Use separate graphs to sketch two indifference curves for people with each of the following utility...
.Use separate graphs to sketch two indifference curves for people with each of the following utility functions: U(x, y) = x + 2y. U(x, y) = min{x,2y}. What type of preferences are represented by a utility function of the form U(x, y) = square root of x+y? What about the utility function V(x,y) = 13x+13y? Consider the utility function u(x,y) = ?^2 ?^3. What kind of preferences does it represent? Is the function v(x,y) = ?^4 ?^5 a monotonic transformation...
QUESTION; Given Biwei’s utility function U=4XY, where X is consumption of beer and Y is consumption...
QUESTION; Given Biwei’s utility function U=4XY, where X is consumption of beer and Y is consumption of pizza. For this utility function, the marginal utility of X is MUx = 4Y; the marginal utility of Y is MUY = 4X. 1) Suppose Y = 3. Calculate Biwei’s utility for X = 2, 3, 10, and 11. For a given level of Y, does good X display diminishing marginal utility? 2) Suppose X = 3. Calculate Biwei’s utility for Y =...
3) Consider the utility function U = 3FC. a. Carefully sketch the indifference curve for utility...
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 =...
10. For this question, use the utility function U(X,Y)= In(X) + 3 In(Y). (a) (2 Points)...
10. For this question, use the utility function U(X,Y)= In(X) + 3 In(Y). (a) (2 Points) What is the marginal utility of X? (b) (2 Points) What is the marginal utility of Y? (c) (2 Points) What is the marginal rate of substitution of X for Y? (d) (2 Points) What is the equation for the slope of the indifference curves?
Question 1 For the following utility functions (3 pts each for a, b, and c): •...
Question 1 For the following utility functions (3 pts each for a, b, and c): • Find the marginal utility of each good at the point (5, 5) and at the point (5, 15) • Determine whether the marginal utility decreases as consumption of each good increases (i.e., does the utility function exhibit diminishing marginal utility in each good?) • Find the marginal rate of substitution at the point (5, 5) and at the point (5, 15) • Discuss how...
please answer all questions 2. Draw the graph of an indifference curve map for the utility...
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.
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
2. 2.1 Draw the indifference curves for the utility function U(21, 22) = x1 + 3x2. 2.2 What is the marginal rate of substitution evaluated at an arbitrary consumption bundle (21, 22)? 2.3 Suppose that p1 = 5, P2 = 2, and M = 10. Find the utility-maximizing consump- tion bundle (among those that satisfy the budge constraint) for this agent. You should be able to do this without using any calculus: it should be clear from your indifference curves....
5. Consider the utility function U(x, y) = 2/x + y. 1) Is the assumption that "more is better” satisfied for both goods? 2) What is MRS, for this utility function? 3) Is the marginal rate of substitution diminishing, constant, or increasing in x as the consumer substitutes x for y along an indifference curve? 4) Will the indifference curve corresponding to this utility function be convex to the origin, concave to the origin, or straight lines? Explain.
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 =...
10. For this question, use the utility function U(X,Y)= In(X) + 3 In(Y). (a) (2 Points) What is the marginal utility of X? (b) (2 Points) What is the marginal utility of Y? (c) (2 Points) What is the marginal rate of substitution of X for Y? (d) (2 Points) What is the equation for the slope of the indifference curves?
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.
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