Phil’s quasi-linear utility function U (q1q2)= ln q1 + q2. Show that tis marginal rate of...
Phil’s quasi-linear utility function U (q1q2)= ln q1 + q2. Show that tis marginal rate of substitution (MRS) is the same in all of his indifference curves at given q1.
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Phil’s quasi-linear utility function U (q1q2)= ln q1 + q2. Show that tis marginal rate of...
consider a quasi-linear utility function: U(x, y) = lnx + y. Show that the MRS is...
consider a quasi-linear utility function: U(x, y) = lnx + y. Show that the MRS is the same on all indifference curves at a given x. Illustrate your result in a suitable diagram. please show all steps, so I can better understand how you reached your final answer.
Hi, please solve . Thank you 7. Shawn has quasi linear preferences, linear in x2. His utility function is given by U...
Hi, please solve . Thank you
7. Shawn has quasi linear preferences, linear in x2. His utility function is given by U (x1, x2) = In(xı) + x2 I (a) Compute his MU, and MUZ (b) Compute Shawn's marginal rate of substitution (MRS) for a bundle (x1, x2). (c) Find his demand function for x, and xz in terms of prices and income (P1, P2, y).
1. Suppose the utility function for goods q1 and q2 is given by U(q1, q2) =...
1. Suppose the utility function for goods q1 and q2 is given by U(q1, q2) = q1q2 + q2 (a) Calculate the uncompensated (Marshallian) demand functions for q1 and q2 (b) Describe how the uncompensated demand curves for q1 and q2 are shifted by changes in income (Y) or the price of the other good. (c) Calculate the expenditure function for q1 and q2 such that minimum expenditure = E(p1, p2, U) (d) Use the expenditure function calculated in part...
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal...
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between x and y as she tries to increase utility by, for example, consuming more when their income increases?
Treat Bob and Joe as the same individual and having the same utility function as provided...
Treat Bob and Joe as the same individual and having the same
utility function as provided at the beginning of the question.
Looking for the solutions to part e and f.
Indifference curves and utility: Consider the utility function U (qi,%)-2q1/2 + q2 that describes Joe's preferences. For the following, think of q1 as the variable you would graph on the horizontal axis. 3. a. Derive an expression for his marginal utility (U) from a small increase in qi holding...
Treat Bob and Joe as having the same utility function as provided at the beginning of...
Treat Bob and Joe as having the same utility function as
provided at the beginning of the question
Indifference curves and utility: Consider the utility function U (qi,%)-2q1/2 + q2 that describes Joe's preferences. For the following, think of q1 as the variable you would graph on the horizontal axis. 3. a. Derive an expression for his marginal utility (U) from a small increase in qi holding q2 fixed. Also, find b. What is Joe's marginal rate of substitution (MRS)?...
Indifference curves and utility: Consider the utility function ? (?1, ?2) = 6?1^1/2 + ?2 that...
Indifference curves and utility: Consider the utility function ? (?1, ?2) = 6?1^1/2 + ?2 that describes Moe’spreferences. For the following, think of q1 as the variable you would graph on the horizontal axis. a. Derive an expression for his marginal utility (U1) from a small increase in q1 holding q2 fixed. Also, find U2. b. What is Moe’s marginal rate of substitution (MRS)? Give a brief (2 sentences maximum) intuitive description of what MRS represents. c. Given your answer...
QUESTION 4 Reshad's preferences over goods 1 and 2 are given by the following utility function:...
QUESTION 4 Reshad's preferences over goods 1 and 2 are given by the following utility function: U(q1, q2)q2Select all that applies: O a His preferences satisfy "more is better O b. His preferences fail the transitivity assumption C. His indifference curves are downward sloping His preferences are convex D e. He dislikes good 1 Marginal rate of substitution for his preferences is given by MRS12
Suppose a consumer has quasi-linear utility: u(x1, x2) = 3.01 + x2. The marginal utilities are...
Suppose a consumer has quasi-linear utility: u(x1, x2) = 3.01 + x2. The marginal utilities are MU(X) = 2x7"! and MU2:) = 1. Throughout this problem, assume P2 = 1. (a) Sketch an indifference curve for these preferences (label axes and intercepts). (b) Compute the marginal rate of substitution. (c) Assume w> . Find the optimal bundle (this will be a function of pı and w). Why do we need the assumption w> (d) Sketch the demand function for good...
3. Given a utility function U(x, y) -rys, (a) Show that the marginal rate of substitution,...
3. Given a utility function U(x, y) -rys, (a) Show that the marginal rate of substitution, MRS (b) For commodity bundles for which y how does the MRS depend on the values of α and β? Develop an intuitive explanation of why, if α > β, MRS > 1.
Hi, please solve . Thank you
7. Shawn has quasi linear preferences, linear in x2. His utility function is given by U (x1, x2) = In(xı) + x2 I (a) Compute his MU, and MUZ (b) Compute Shawn's marginal rate of substitution (MRS) for a bundle (x1, x2). (c) Find his demand function for x, and xz in terms of prices and income (P1, P2, y).
4. Consider the utility function U(x, y) = x + ln y. (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between x and y as she tries to increase utility by, for example, consuming more when their income increases?
Treat Bob and Joe as the same individual and having the same
utility function as provided at the beginning of the question.
Looking for the solutions to part e and f.
Indifference curves and utility: Consider the utility function U (qi,%)-2q1/2 + q2 that describes Joe's preferences. For the following, think of q1 as the variable you would graph on the horizontal axis. 3. a. Derive an expression for his marginal utility (U) from a small increase in qi holding...
Treat Bob and Joe as having the same utility function as
provided at the beginning of the question
Indifference curves and utility: Consider the utility function U (qi,%)-2q1/2 + q2 that describes Joe's preferences. For the following, think of q1 as the variable you would graph on the horizontal axis. 3. a. Derive an expression for his marginal utility (U) from a small increase in qi holding q2 fixed. Also, find b. What is Joe's marginal rate of substitution (MRS)?...
QUESTION 4 Reshad's preferences over goods 1 and 2 are given by the following utility function: U(q1, q2)q2Select all that applies: O a His preferences satisfy "more is better O b. His preferences fail the transitivity assumption C. His indifference curves are downward sloping His preferences are convex D e. He dislikes good 1 Marginal rate of substitution for his preferences is given by MRS12
Suppose a consumer has quasi-linear utility: u(x1, x2) = 3.01 + x2. The marginal utilities are MU(X) = 2x7"! and MU2:) = 1. Throughout this problem, assume P2 = 1. (a) Sketch an indifference curve for these preferences (label axes and intercepts). (b) Compute the marginal rate of substitution. (c) Assume w> . Find the optimal bundle (this will be a function of pı and w). Why do we need the assumption w> (d) Sketch the demand function for good...
3. Given a utility function U(x, y) -rys, (a) Show that the marginal rate of substitution, MRS (b) For commodity bundles for which y how does the MRS depend on the values of α and β? Develop an intuitive explanation of why, if α > β, MRS > 1.
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