A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*.
B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that is not the optimal bundle.
C) Suppose U=X∙Y5. Find X* and Y*.
D) Suppose U = 5∙X + 2∙Y and I=12, Px=2 and Py=1. Find X* and Y*.
A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B)...
A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that is not the optimal bundle. C) Suppose U=X∙Y5. Find X* and Y*. D) Suppose U = 5∙X + 2∙Y and I=12, Px=2 and Py=1. Find X* and Y*.
4) A consumer’s utility function is u(x, y) = min{x, 3y} (a) Find the consumer’s optimal choice for x, y as functions of income I and prices px,py. (b) Sketch the demand curve for y as a function of other price px when py = 10, I = 100. Suggestion: a picture showing the budget set, optimal choice and indifference curve. (I need help with the sketching which is the second part)
A) Suppose U = ln(x)+y and Px=2, and Py=4. Write down the expenditure minimizing lagrangian for this problem. (you don’t need to solve it) B) You have $8 which you can spend on X or Y. The price of Y is always $1 but the price of X is $1 for the first 2 and $2 after that. Draw the budget constraint (make sure to label the graph with all of the relevant information). C) Suppose U = min[2X, 3Y]...
1. Clara's utility function is U(X,Y)= (x + 2)(Y +1). a) Write an equation for Clara's indifference curve that goes through the point(X,Y)-(2,8). b) Suppose that the price of each good is one and that Clara has an income of 11. Write an equation that describes her budget constraint. c) Find an equation the describes Clara's MRS for any given commodity bundle (X,Y). d) Use the equations in parts b) and e) to solve for Clara's optimal bundle Hint use...
U(X,Y) = ln(X) + ln(Y) I = 50, Px = 5, Py = 10 Find MRSX,Y Find demand functions for X and Y Find the optimal bundle for the following values of the exogenous variables
u(x,y)= x+3y,INCOME=12;px =1,py =2;p′x =1,p′y =4 initial prices px,py and final prices p′x,p′y. For THE problem, you are to find: (a) the optimal choice at the initial prices (b) the optimal choice at the final prices (c) the change = optimal choice at final prices - optimal choice at initial prices (d) the income effect and the substitution effect
Assume that Sam has following utility function: U(x,y) = 2√x+y. Assume px = 1/5, py = 1 and her income I = 10. (e) Draw an optimal bundle which is the result of utility maximization under given budget set. (Hint: Assume interior solution). Define corresponding expenditure minimization problem (note the elements for expenditure minimization problem are (i) objective function, (ii) constraint, (iii) what to choose). (f)Describeaboutwhatthedualityproblemis. Definemarshalliandemandfuction andhicksiandemandfunction. (Hint: identifytheinputfactorsofthesefunctions.) (g) Consider a price increase for the good x from...
1. U = XY where MRS = Y/X; I = 1500, Px = Py = 15, A. Derive optimal consumption bundle. B. If Px increases to be $30, derive the new optimal consumption bundle C. Using the results from A and B, derive the individual demand for good X assuming the demand is linear. 2. Assuming the market has two consumers for a very special GPU and their individual demands are given below Consumer A: P = 450 – 4...
Suppose an individual’s utility function for two goods X and Y is givenby U(X,Y) = X^(3/4)Y^(1/4) Denote the price of good X by Px, price of good Y by Py and the income of the consumer by I. a) (2 points) Write down the budget constraint for the individual. b) (4 points) Derive the marginal utilities of X and Y. c) (3 points) Derive the expression for the marginal rate of substitution of X for Y. Write down the tangency...
can someone explain this step by step? especially don't understand how they got m/px? why we can't use the lagrange. and not sure how they drew the graph for this question. SOMEONE PLEASE HELP MIDTERM SOON AND WILL GIVE BIG THUMBS UP!!!! confused where 4x20+5x0 is coming from Problem 4 Eric's preferences for goods x and y are represented by the following utility function: U(X,Y) = 4X +5Y. The price of good X is px = 2 and the price...