Homework Answers
Add Answer to:
At the consumer's optimal consumption bundle, the MRSxy is 4, and the marginal utility of good...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
d. U (1, ) (1a)(b-a For the utility function above, find the consumer's optimal consumption bundle...
d. U (1, ) (1a)(b-a For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods For each of your answers in question 2, write down...
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices...
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m. 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods. For each of your answers in question 2, write down the consumer...
Optimal Consumption of good x and good y: Maximization Rule - Maximization of Utility given a...
Optimal Consumption of good x and good y: Maximization Rule - Maximization of Utility given a Budget Constraint = Marginal Utility of good x/Price of good x = Marginal Utility of good y/Price of y Calculate Consumption Bundle using the following information: Price of Good x = $5, Price of Good y = $16 and Income = $100 / 0 Quantity Consumed Total Utility Quantity Consumed Total Utility Calculate: a.) Price Elasticity of Demand =% Change in Quantity Demanded/%Change in...
4. MRSxy= , and budget line 400 = 10x + 20y a. What is the optimal...
4. MRSxy= , and budget line 400 = 10x + 20y a. What is the optimal bundle of x and y? Depict this graphically. b. Suppose the price of good x falls to $7, what is the new optimal bundle? Show on graph above. c. What is the total effect on good x) of the price decrease? d. What is the Substitution and Income effects? E-ONLY V e. Is the good a normal good or inferior good? Why?
1) Eor each of the utility functions below, find the optimal consumption bundle if pi-3 and...
1) Eor each of the utility functions below, find the optimal consumption bundle if pi-3 and p2-2 and m-240 a. u(x)-2x2 b. u(x)-xix22 c. d, e. u(x)- 2x1+X2 u(x)-min(x1,2%) u(x)-x1-X22 y(x)-max(x1,x2) X(X1,X2 2) Suppose p1-2, p2-7 for the first 2 units and p2 4 for the rest. a) Ifm-54 and u(x) -X1+3x2, then what is the optimal consumption bundle? b) Ifm-22 and u(x) - min(3xı, 2x2), , thenwhat is the optimal consumption bundle? Erom Workouts: 5.3,5.6,5.7 3)
A consumer’s marginal rate of substitution (MRSxy) is always 4. The price of Good X is...
A consumer’s marginal rate of substitution (MRSxy) is always 4. The price of Good X is $10 and the price of Good Y is $2. Which of the following will be true? a. The consumer will only buy Good Y. b. The consumer will only buy Good c. The consumer will spend all her income and buy some of Good X and some of Good Y. d. The consumer's expenditures on Good X will be four times more than her...
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?...
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y...
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y are $3 and $5, respectively, and the consumer's income is $150 . a. Find the MRS for this consumer for any given bundle (x,y) . b. Find the optimal consumption bundle for this consumer. c. Suppose the price of good x doubles. How much income is required so that the Econ 201 Beomsoo Kim Spring 2018 consumer is able to purchase...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
d. U (1, ) (1a)(b-a For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods For each of your answers in question 2, write down...
h. U(1, 2 For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an income m. 1. 2. For the utility function above, find the consumer's optimal consumption bundle when prices of goods 1 and 2 are pl and p2, and the consumer has an endowment (el, e2) of the two goods. For each of your answers in question 2, write down the consumer...
Optimal Consumption of good x and good y: Maximization Rule - Maximization of Utility given a Budget Constraint = Marginal Utility of good x/Price of good x = Marginal Utility of good y/Price of y Calculate Consumption Bundle using the following information: Price of Good x = $5, Price of Good y = $16 and Income = $100 / 0 Quantity Consumed Total Utility Quantity Consumed Total Utility Calculate: a.) Price Elasticity of Demand =% Change in Quantity Demanded/%Change in...
4. MRSxy= , and budget line 400 = 10x + 20y a. What is the optimal bundle of x and y? Depict this graphically. b. Suppose the price of good x falls to $7, what is the new optimal bundle? Show on graph above. c. What is the total effect on good x) of the price decrease? d. What is the Substitution and Income effects? E-ONLY V e. Is the good a normal good or inferior good? Why?
1) Eor each of the utility functions below, find the optimal consumption bundle if pi-3 and p2-2 and m-240 a. u(x)-2x2 b. u(x)-xix22 c. d, e. u(x)- 2x1+X2 u(x)-min(x1,2%) u(x)-x1-X22 y(x)-max(x1,x2) X(X1,X2 2) Suppose p1-2, p2-7 for the first 2 units and p2 4 for the rest. a) Ifm-54 and u(x) -X1+3x2, then what is the optimal consumption bundle? b) Ifm-22 and u(x) - min(3xı, 2x2), , thenwhat is the optimal consumption bundle? Erom Workouts: 5.3,5.6,5.7 3)
Most questions answered within 3 hours.
-
Compare a two-year bond with two successive one-year bonds in a
situation in which an investor...
asked 14 seconds from now -
You and your friends are playing in the swimming pool with a
40-cm-diameter beach ball. How...
asked 49 seconds ago -
Patterson Development sometimes sells property on an installment
basis. In those cases, Patterson reports income in...
asked 12 minutes ago -
please help with these two example, i want to double check my
work. thanks
1.
sum:=0...
asked 9 minutes ago -
in the formation of 1.0 mole of the following crystalline solids
from the gaseous ions most...
asked 15 minutes ago -
Please answer Letter G only.
Price
Quantity
TR
MR
MC
TC
Profit
$15,000
0
0
----...
asked 16 minutes ago -
You are required to develop and submit a 12-month integrated
marketing communications plan for the KFC...
asked 18 minutes ago -
Let v=(1,-4,12) and w=(3,5,-1) be vectors.
What is 2v-3w?
asked 34 minutes ago -
What is the [A2-] (in mol L-1) of a solution containing 1.355
mol L-1 of a...
asked 30 minutes ago -
Suppose an equilibrium mixture consists of 0.46 atm
N2O4 and 2.0 atm NO2, and the
volume...
asked 26 minutes ago -
9. Answer the following questions related to the size of a
program and memory space.
A)...
asked 31 minutes ago -
What organ is the site of gas exchange in amphibians? select
all that apply
spleen
lungs...
asked 32 minutes ago