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Question 6 (Utility). Suppose a consumer's utility function is given by U(x, x)=x7x2 Draw an indifference...
4. Suppose that Noah's utility function is given by (a) Draw an indifference curve that goes...
4. Suppose that Noah's utility function is given by (a) Draw an indifference curve that goes through the bundle (2,2), where xi is on the horizontal axis and z2 is on the vertical axis. (b) Draw another indifference curve that goes through the bundle (3, 3) on the same diaram as (a). Label carefully. (c) What kind of preference does Noah have about the two goods?
1.3 The consumer's utility function is given by U(X,Y) = 2X + Y and the given...
1.3 The consumer's utility function is given by U(X,Y) = 2X + Y and the given bundle is X = 1, Y-3. MRS = Draw your graph in the space provided. Label at least some tick marks on the axes to make reading the graph easier
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?
Suppose that a consumer's utility function is u(x, y) = x, defined for all bundles such...
Suppose that a consumer's utility function is u(x, y) = x, defined for all bundles such that x > 0 and y > 0. For any given positive level of utility, the corresponding indifference curve is O strictly convex. a vertical line. O a horizontal line. a line that is neither horizontal nor vertical.
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 =...
3. Suppose a consumer's utility function is given by U(A, B) In(A)+In(B). Suppose the price of...
3. Suppose a consumer's utility function is given by U(A, B) In(A)+In(B). Suppose the price of each apple (A) is €6, and the price of a loaf of bread (B) Is €6 and the consumer's income is €120 ) Write down the Lagrangian for this problem and solve for the optimal consumption of apples and (ii) Report and interpret your solution for the Lagrange multiplier. bread. i) Evaluate the marginal utility of bread and the marginal utility of apples at...
3. Suppose the utility function for two goods, x and y, is: U = U(x,y) =...
3. Suppose the utility function for two goods, x and y, is: U = U(x,y) = xłyż. a. Graph the indifference curve for U = 10. b. If x = 5, what must y equal to be on the U = 10 indifference curve? What is the MRS at this point? c. Derive a general expression for the MRS for this utility function. Show how it can be interpreted as the ratio of the marginal utilities. d. Does this individual...
8. Problems 3.8 k1/6 Suppose indifference curves for a utility function U are given by z...
8. Problems 3.8 k1/6 Suppose indifference curves for a utility function U are given by z --kısx-usy-As. The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by y 0.51/x2 - 4 (x2-k) -0.5x The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by z-- 2x The utility function U k associated with these indifference curves is
3. Suppose a consumer's utility function is given by U(A,B) In(A)+In(B). Suppose the price of each...
3. Suppose a consumer's utility function is given by U(A,B) In(A)+In(B). Suppose the price of each apple A) is є2, and the price of a loaf of bread (B) is є2 and the consumer's income was €40. (i) Find the marginal utility of apples and the marginal utility of bread and use these to determine if the ii) Write down the Lagrangian for this problem and solve for the optimal consumption of apples and iii) Report and interpret your solution...
Question Two Suppose that in a two-commodity world, the consumer's utility function takes the form (x)-la...
Question Two Suppose that in a two-commodity world, the consumer's utility function takes the form (x)-la +. This utility function is known as the constant elasticity of substitution utility function a) Show that when p-1, indifference curves become linear Show that when p o. this utility function comes to represent the same preference as the cable Douglas utility function () c) Show that as , indifference curves become right angles" that is this utility function has the limit the indifference...
4. Suppose that Noah's utility function is given by (a) Draw an indifference curve that goes through the bundle (2,2), where xi is on the horizontal axis and z2 is on the vertical axis. (b) Draw another indifference curve that goes through the bundle (3, 3) on the same diaram as (a). Label carefully. (c) What kind of preference does Noah have about the two goods?
1.3 The consumer's utility function is given by U(X,Y) = 2X + Y and the given bundle is X = 1, Y-3. MRS = Draw your graph in the space provided. Label at least some tick marks on the axes to make reading the graph easier
Suppose that a consumer's utility function is u(x, y) = x, defined for all bundles such that x > 0 and y > 0. For any given positive level of utility, the corresponding indifference curve is O strictly convex. a vertical line. O a horizontal line. a line that is neither horizontal nor vertical.
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 =...
3. Suppose a consumer's utility function is given by U(A, B) In(A)+In(B). Suppose the price of each apple (A) is €6, and the price of a loaf of bread (B) Is €6 and the consumer's income is €120 ) Write down the Lagrangian for this problem and solve for the optimal consumption of apples and (ii) Report and interpret your solution for the Lagrange multiplier. bread. i) Evaluate the marginal utility of bread and the marginal utility of apples at...
3. Suppose the utility function for two goods, x and y, is: U = U(x,y) = xłyż. a. Graph the indifference curve for U = 10. b. If x = 5, what must y equal to be on the U = 10 indifference curve? What is the MRS at this point? c. Derive a general expression for the MRS for this utility function. Show how it can be interpreted as the ratio of the marginal utilities. d. Does this individual...
8. Problems 3.8 k1/6 Suppose indifference curves for a utility function U are given by z --kısx-usy-As. The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by y 0.51/x2 - 4 (x2-k) -0.5x The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by z-- 2x The utility function U k associated with these indifference curves is
3. Suppose a consumer's utility function is given by U(A,B) In(A)+In(B). Suppose the price of each apple A) is є2, and the price of a loaf of bread (B) is є2 and the consumer's income was €40. (i) Find the marginal utility of apples and the marginal utility of bread and use these to determine if the ii) Write down the Lagrangian for this problem and solve for the optimal consumption of apples and iii) Report and interpret your solution...
Question Two Suppose that in a two-commodity world, the consumer's utility function takes the form (x)-la +. This utility function is known as the constant elasticity of substitution utility function a) Show that when p-1, indifference curves become linear Show that when p o. this utility function comes to represent the same preference as the cable Douglas utility function () c) Show that as , indifference curves become right angles" that is this utility function has the limit the indifference...
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