Natasha's utility function is U(C, F) = (3 + FVC, where C stands for concert tickets...
3. Suppose Natalie's income is $200 per month, a concert ticket costs $30, a film ticket costs $5, and her preferences are represented by the utility function U(C, F) where C stands for the number of concerts and F stands for the number of films. (a) What is Natalie's marginal utility of film tickets? (b) What is Natalie's marginal utility of concert tickets? (c) What is Natalie's MRS for film tickets with concert tickets? (d) What is the optimal affordable...
3. Nora enjoys fish (F) and chips(C). Her utility function is U(C, F) = 2CF. Her income is B per month. The price of fish is Pf and the price of chips is P. Place fish on the horizontal axis and chips on the vertical axis in the diagrams involving indifference curves and budget lines. (a) What is the equation for Nora’s budget line? (b) The marginal utility of fish is MUf = 2C and the Marginal utility of chips...
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 =...
Joseph has the utility function U(F,H) = 10F2H, where F is the quantity of food he consumes per year and H is the quantity of housing per week. Suppose the price of food is $10 and the price of housing is $5, while Joseph has an income of $150/week. a. What can you say about the nature two goods that Joe consumes? And why so? b. Does the indifference curve exhibit diminishing marginal rate of substitution (MRS)? Provide appropriate reasons....
2 and 3 please. A consumer purchases two goods, food (F) and clothing (C). Her utility function is given by U(F,C)= FC +F. The marginal utilities are MU, = C +1 and MUS = F. The price of food is Pc , the price of clothing is Pc, and the consumer's income is I. 1) What is the demand curve for clothing? 2) Is clothing a normal good in this case? Charlie consumes two goods, professional baseball games (B) and...
1. (10 points) Joseph has the utility function U(F,H) - 10F2H, where F is the quantity of food he consumes per year and His the quantity of housing per week. Suppose the price of food is $10 and the price of housing is $5, while Joseph has an income of $150/week. a. What can you say about the nature two goods that Joe consumes? And why so? b. Does the indifference curve exhibit diminishing marginal rate of substitution (MRS)? Provide...
Marge has the utility function U(F,H)=20F2H where F is the quantity of footwear and H is the quantity of hats she consumes. Suppose the price of footwear is $20 and the price of hats is $5, while Marge has an income of $200/week. Calculate Marge's MRS as a function of the quantities F and H. (2 points) BONUS: Write down the Lagrangian function for Marge's utility maximization problem. (2 points) Solve for Marge's optimal consumption bundle of footwear and...
3. A consumer's preferences over a and y are given by the utility function u(x,y) - 2vr 2/y. The individual's income is I $100. The price of a unit of good c is $2, while the price of a unit of good y is S1. a) Graphically describe: i. the consumer's preferences for r and y ii. the budget constraint (b) Find the optimal x that the consumer would choose. You may assume (c) What is the consumer's MRS at...
The utility that Julie receives by consuming food F and clothing C is given by U(F, C) = FC. For this utility function, the marginal utilities are MUF = C and MUC = F. a) On a graph with F on the horizontal axis and C on the vertical axis, draw indifference curves for U = 12, U = 18, and U = 24. b) Do the shapes of these indifference curves suggest that Julie has a diminishing marginal rate...