Janice Doe consumes two goods, X and Y. Janice has a utility function given by the expression:
Janice Doe consumes two goods, X and Y. Janice has a utility function given by the expression:
Noah Doe consumes two goods, X and Y. Noah has a utility function given by the expression: U(X,Y) = x2y3 The current prices of X and Y are 4 and 3, respectively. Janice currently has an income of 100 per time period. (a) Write an expression for Noah's budget constraint. (4 marks) (b) Calculate the optimal quantities of X and Y that Noah should choose, given his budget constraint. (16 marks)
2. Janice consumes two goods, X and Y. Janice has a utility function given by the expression: U = 4x0.5y 0.5 The current prices of X and Y are $25 and $50, respectively. Janice currently has an income of $750 per time period (Put X on the horizontal axis and Y on the vertical axis). a) Is the assumption that "more is better” satisfied for both goods? b) Calculate MRSxy. Determine if it is diminishing for this utility function. c)...
Sally consumes two goods, X and Y. Her utility function is given by the expression U = 2 · XY ^2 . The current market price for X is $10, while the market price for Y is $12. Sally’s current income is $900. a. Sketch a set of two indifference curves for Sally in her consumption of X and Y. b. Write the expression for Sally’s budget constraint. Graph the budget constraint and determine its slope. c. Determine the X,Y...
3) Sally consumes two goods, X and Y. Her utility function is given by the expression U = 3 · XY2. The current market price for X is $10, while the market price for Y is $5. Sally's current income is $500. a. Sketch a set of two indifference curves for Sally in her consumption of X and Y. b. Write the expression for Sally's budget constraint. Graph the budget constraint and determine its slope. c. Determine the X, Y...
Clara consumes two goods x and y. Suppose her utility function is given as U(x,y)=min{3x,4y} The prices of the two goods are Px for good x and Py for good y. If her monthly income is $M, Derive her uncompensated demand function for good x Derive her uncompensated demand function for good y Derive the cross-price effects and show that the two goods are complementary goods.
3 Clara consumes two goods x and y. Suppose her utility function is given as U(x,y)=min{3x,4y} The prices of the two goods are Px for good x and Py for good y. If her monthly income is $M, Derive her uncompensated demand function for good x Derive her uncompensated demand function for good y Derive the cross-price effects and show that the two goods are complementary goods.
) John consumes two goods, X and Y. The marginal utility of X and the marginal utility of Y satisfy the following equations: MUX = Y MUY = X. The price of X is $9, and the price of Y is $12. a. Write an expression for Johnʹs MRS. b. What is the optimal mix between X and Y in Johnʹs market basket? c. John is currently consuming 15 X and 10 Y per time period. Is he consuming an...
5. Douglas consumes two goods, x and y. His utility function is u(x) = Vx+y Let the price of good x be $2 and the price of good y be $2. Furthermore, assume that Douglas has $420.00 to spend on these two goods. Find the demand for good x and y. Now suppose that the price of good x decreases to $1.00. What is the income effect and substitution effect of this price change on the demand for x?
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...
Marta consumes only goods X and Y and faces the following utility function: U=7 X+4 Y. The marginal utility for X is MUX=7 and the marginal utility for Y is MUY=4 . The price of X is $10 and the price of Y is $50. Marta has an initial budget of $200. How many of X and Y will Marta buy given her utility function, her budget, and the prices? X= Y= Suppose that the government places a restriction on X...