Please help me with this question. I need steps. Thanks a lot.
Please help me with this question. I need steps. Thanks a lot. 6. If a household consumes units of one good and y units of a second good, its satisfaction is measured by the function s(x,y) = 2 In x...
Suppose there are 100 units of good x and 50 units of good y in an exchange economy with 2 people. Suppose consumer 1 has a utility function u1(x1,y1)=x1y1 and consumer 2 has a utility function of u2(x2,y2)=(x2y2)^(1/2) a. What is the MRS of person 1 at 25 units of good x and 12.5 units of good y? Express the MRS as a numerical value (one decimal) in terms of units of good y that we can take away if...
06 Question (3 points) e See page 149 Douglas consumes two goods, x and y. His utility function is u(x, y) = (x + y. In the questions below, give your answers to two decimal places. 1st attempt Part 1 (1 point) See Hint Let the price of good x be $2 and the price of good y be $10. Furthermore, assume that Douglas has $360.00 to spend on these two goods. How much of good x does Douglas demand?...
Ewa's preferences are presented by the utility function: U(2,y) = 2lnz + y. With a current income and prices she consumes 30 units of good x and 20 units of good y. It is true that: Select one: a. Ewa's demand for good y is independent from an income b. The price of good y must be lower than the price of good x c. Ewa's income must be 22 times higher than the price of good y d. Ewa...
1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40 euros, the price per unit of good X (i.e. Px ) is 5 euros and the price per unit of good Y (i.e. Py) is 1 euro. a) What is the marginal utility of good X (MUx) for the consumer? ( Answer: MUx = 10) b) What is the marginal utility of good Y (MUy) for the consumer? ( Answer: MUy = 1) c)...
3. (14 points) A consumer's utility function is given by U(x,y) = x1/2y1/2 (1) Find the consumer's Marshallian demand functions. (2) Find the consumer's compensated demand functions. (3) Suppose the price of good y is Py = $1 per unit and the consumer's income is 1 = $20. Find the total effects on good x and good y when the price of good x increases from px - $1 per unit to p} = $2 per unit.
Question 2 Question 2 (15 pts) A consumer has preferences represented by the utility function u(x,y) -xlyi. (This means that a. What is the marginal rate of substitution? b. Suppose that the price of good x is 2, and the price of good y is 1. The consumer's income wWhat is the optimal quantity is 20. What is the optimal quantity of x and y the consumer will choose? c. Suppose the price of good x decreases to 1. The...
A consumer has the utility function U(X, Y) = (X + 2)(Y + 4). Her income is $100, the price of X is $4, and the price of Y is $5. In order to maximize utility subject to her budget constraint, how many units of X and Y will our consumer choose to purchase? Sketch a budget line – indifference curve diagram illustrating this optimum. Label this optimum A. Suppose the price of X increases to $8, while income and the price...
Suppose the initial price of good 1 is $2 and the initial price of good 2 is $4 and initial income is $100. A consumer maximizes utility selecting an initial consumption bundle (pt R) and a new consumption bundle (pt S) given a change in an exogenous variable. Baseline Budget: B New Budget : B2 Units of Good 2 (31 = 75,x) = 37.5) u2 = 53.03 (21= 25,= 12.5) B U = 17.7 © 20 40 60 80 100...
Please show work QUESTION 2 Suppose the demand function for good X p-1.8 p-0.6M6 y · Then we know that the own-price elasticity y of demand for this good is: O elastic on the upper half of the demand curve and inelastic on the lower half of the curve. O unitary at all points on the demand curve. inelastic on the upper half of the demand curve and elastic on the lower half of the curve. O elastic at all...
can someone help me with this question please 2. (30 points) Suppose the world price for a good is 50 and the domestic demand and supply curves are given by the following equations: Demand: P = 100 - 20 Supply: P = 20 + 30 How much is consumed? How much is produced at home? What are the values of consumer and producer surplus? If a tariff of $6 per unit is imposed, by how much docon change? unit is...