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![nuly 6x2 - At optimality MRS = Pxlpy - Pripy - dlu a k At optionality thy=x] putin Budget 2x+4y=240 3x=240 x = 240 80 4 y azo](http://img.homeworklib.com/questions/e7840430-1640-11ea-93cf-9fbc37a045c8.png?x-oss-process=image/resize,w_560)
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Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(6x2y e. If Cat's income is 24...
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y....
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y. a. What is Cat's marginal utility for tomatoes, and what is her marginal utility for cucumbers? How does Cat's utility change when she consumes more tomatoes? How does her utility change when she consumes more cucumbers? b. Find Cat’s marginal rate of substitution (tomatoes are on the x axis and cucumbers on the y axis). What is the slope of Cat's indifference curve that...
Question 3. Jane consumes X-rays(X) and fancy yogurts(Y) with the following preferences U(X,Y) = X 0.2Y...
Question 3. Jane consumes X-rays(X) and fancy yogurts(Y) with the following preferences U(X,Y) = X 0.2Y 0.8. X-rays cost $10 each and fancy yogurts cost $20 each. The consumer has $100 to spend. (a) What is the optimal bundle of X and Y that optimizes Jane’s utility? (b) Jane is super happy to find out that the price of fancy yogurts(Y) drop to only $10! What is her new optimal bundle of X and Y? (c) Decompose the change in...
Ewa's preferences are presented by the utility function: U(2,y) = 2lnz + y. With a current...
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...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences o...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences over these two goods are represented by the utility function u(r,y) min(, 4y). The price of good y is given to be S8. Her income and price of z are represented by m and ps, respectively. (a) (10 pts) Find the demand for good z as a function of m and pa. (b) (5 pts) Is good z ordinary or Giffen good?...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r, y)- .5,2 where denotes the quantity of good X and y denotes the quantity of good Y. The current market price for X is px 10 while the market price for Y is Pr = $5. Sally's current income is $500. (a) Write the expression for Sally's budget constraint. (1 point) (b) Find the optimal consumption bundle that Sally will...
3. A consumer's preferences over a and y are given by the utility function u(x,y) -...
3. A consumer's preferences over a and y are given by the utility function u(x,y) - 2vr 2/y. The individual's income is I $100. The price of a unit of good c is $2, while the price of a unit of good y is S1. a) Graphically describe: i. the consumer's preferences for r and y ii. the budget constraint (b) Find the optimal x that the consumer would choose. You may assume (c) What is the consumer's MRS at...
can be described by the utility function U(r, y)102. Prices Sally the Sleek's preferences are pz...
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...
Sally the Sleek’s preferences can be described by the utility function U(x, y) = x^2y^3/1000. Prices...
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...
Suppose a consumer spend all of her income on only two goods, x and y. Her preferences over these two goods are represen...
Suppose a consumer spend all of her income on only two goods, x and y. Her preferences over these two goods are represented by the utility function u(x,y)=2x1/2+3y. Find the mrsxy. Is it diminishing or not? (In the solution of this problem our teachers prefers to solve this via MUx/ MUy this ratio. But in other schools they prefer to solve this MUx/ MUy . Which one is true ? Why they use minus sign ?
Margaret spends all of her income on t-shirts (x1) and shoes (x2). Her preferences can be...
Margaret spends all of her income on t-shirts (x1) and shoes (x2). Her preferences can be represented by the utility function u (x1, x2) = 2√x1x2 (a) [15 Points] Derive the demand functions for t-shirts and shoes in terms of the price of t-shirts (p1), the price of shoes (p2), and income (m). Show your result on a graph. (b) [10 Points] Draw the Income Offer Curve and Engel Curves (one for each good). (c) [10 Points] Draw the Price...
Cat only buys tomatoes (x) and cucumbers (y) and her preferences can be identified with U(x,x)=6x2y. a. What is Cat's marginal utility for tomatoes, and what is her marginal utility for cucumbers? How does Cat's utility change when she consumes more tomatoes? How does her utility change when she consumes more cucumbers? b. Find Cat’s marginal rate of substitution (tomatoes are on the x axis and cucumbers on the y axis). What is the slope of Cat's indifference curve that...
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...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences over these two goods are represented by the utility function u(r,y) min(, 4y). The price of good y is given to be S8. Her income and price of z are represented by m and ps, respectively. (a) (10 pts) Find the demand for good z as a function of m and pa. (b) (5 pts) Is good z ordinary or Giffen good?...
Sally consumes two goods, X and Y. Her preferences over consumption bundles are repre- sented by the utility function r, y)- .5,2 where denotes the quantity of good X and y denotes the quantity of good Y. The current market price for X is px 10 while the market price for Y is Pr = $5. Sally's current income is $500. (a) Write the expression for Sally's budget constraint. (1 point) (b) Find the optimal consumption bundle that Sally will...
3. A consumer's preferences over a and y are given by the utility function u(x,y) - 2vr 2/y. The individual's income is I $100. The price of a unit of good c is $2, while the price of a unit of good y is S1. a) Graphically describe: i. the consumer's preferences for r and y ii. the budget constraint (b) Find the optimal x that the consumer would choose. You may assume (c) What is the consumer's MRS at...
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...
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