6. Zack’s preferences can be described by ?(?, ?) = ? + ??(?). To remain as well off, Jack is willing to give up _________ of good Y as he consumes each additional unit of good X.
larger and larger amounts
smaller and smaller amounts
a constant amount
6. Zack’s preferences can be described by ?(?, ?) = ? + ??(?). To remain as...
7. An individual's preferences are represented by the utility function Ua, y) 4xy x. Which of the following statements is false? a. The marginal utility of x increases as x increases, holding y constant. b. Preferences are monotonic in both goods. c. The indifference curves slope downward at a decreasing rate. d. The marginal rate of substitution ofx for y increases as y increases, holding x constarnt e. The consumer is willing to give up decreasing amounts of good y...
8. An individual's preferences are represented by the utility function Ulx, y) . Which of the following statements is true? a. The marginal utility of x decreases as x increases, holding y constant. b. The marginal rate of substitution of x for y increases as the consumer substitutes x for y (i.e. more x and less y) along an indifference curve. c. The consumer needs to be compensated with (i.e. gain) increasing amounts of good x in order to be...
For questions 8-10 assume that Katy has preferences for sleeping and partying which can be described by the utility function ? = ? 2? 2 with marginal utilities ??? = 2??2 , ??? = 2? ?2 . 8. Given Katy’s utility function, the corresponding indifference curves slope upward/downward and become flatter/steeper (a) upward, flatter (b) upward, steeper (c) downward, flatter (d) downward, steeper 9. Given Katy’s utility function, she needs to give up increasing amounts of sleeping hours in order...
Question 19 4 pts Jack has well-behaved, convex preferences. Jack is currently consuming some amount of Good A and Good B; and, at the current bundle, Jack's MRS in absolute value is something larger than 5. The interpretation is the MUQ/MUp > 5. We know that: o If Jack loses some amount of Good A but gains 5 units of Good B for each lose unit of Good A, Jack is definitely better off than before. If Jack loses some...
6. An individual is willing to forgo increasing amounts of good Y for each additional unit of good X. Which of the following utility functions is consistent with these preferences? a. U(X, Y) =X+y? b. U(X, Y) (X1/2Y1/2)2 c. U(X,Y) Y2 x2
1. Given the following table showing various combinations of goods X and Y that bring equal satisfaction to an individual consumer: good X good Y 2 units 3 units 4 units 5 units 10 units 9 units 6 units 2 units In this table, as the individual consumes a greater amount of X, a amount of good Y is given up for each additional unit of good X. This pattern suggests that, as more of good X is consumed and...
I only need answer for part D please. 3. Sam and Dean are twin brothers. Each gets a weekly allowance of $2. Sam's preferences for fidget spinners (good and water guns (good y) can be represented by the utility func- tion u(x, y) -xiyi. Suppose that both goods are S1 per unit. (a) Solve for Sam's optimal consumption bundle. (b) Suppose p rises to $2. What is Sam's new optimal consumption point? (c) How much would his parents have to...
Sally the Sleek’s preferences can be described by the utility function U(x, y) = x^2y^3/1000. Prices are px = 4 and py = 3; she has an income of $80 to spend. (a) If Sally initially consumed 5 units of x and 20 units of y, how much additional utility does she get from spending one (small fraction of a) dollar more on good x? How much additional utility does she get from spending one (small fraction of a) dollar...
can be described by the utility function U(r, y)102. Prices Sally the Sleek's preferences are pz 2 and py 4. (a) If Sally initially consumed 10 units of and 5 units of y, how much could she save if she consumed 8 more (small) units of x and kept utility constant?1 Therefore, can it be optimal to (b) Sally decides that she wants a level of U 27. What is the minimum she would have to spend c) What is...
9. Explain why two indifference curves that represent distinct levels of preference (or utility) can not cross and how this would violate the assumption that preferences are transitive. Provide a sketch to support your answer. homo economicus agent's preferences can be represented using a Cobb-Douglas utility functionn The agent's "taste for good 1 relative to good 2 depends on a single parameter, a. The larger the value of a, the more good 2 she is willing to give up to...