QUESTION 10 Units of X MU MUx/Px $2 Units of Y MUy MUy/Py $4 20 1...
1. A consumer is considering to buy only two products, X, and Y. The amount of total utility yielded by their consumption is shown in the table below. Assume that the prices of X, and Y are $8, and $2 respectively, and that the consumer has an income of $24 to spend. a) Complete the following table by computing the marginal utility and the marginal utility per dollar for successive units of product X and Y. (4 marks) b) How...
True or False. 1. If MUX/PX > MUY/Py at the best affordable bundle with goods X and Y the individual will not consume any of good Y.
Consumer Theory 13 Ordinary Goods 1. Let U(x, y) = x2/3743, MU2 = 173 MUY = 2 x 5 Pa = 6, Py = 3, and M = 30. 2. Let U(x, y) = x2/3y1/3, MUX 17, MUY Px = 6, Py = 3, and M - 30. 3. Let U(x, y) = 2x1/3y2/3, MU, = 2 21/a, Px = 6, Py = 3, and M = 30. 4. Let U(x, y) = 2x4 3y1/3, MUx = * * 78,...
Q TUx MUx TUy MUy 0 0 0 0 1 7 7 4 4 2 13 6 14 10 3 18 5 22 8 4 22 4 28 6 5 25 3 32 4 6 27 2 34 2 7 27 0 34 0 8 26 -1 33 -1 9 25 -1 31 -2 10 23 -2 28 -3 At what unit a consumer reaches equilibrium if he buys both commodities when their prices are: Px = $2 and Py...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X14Y34. The consumer has $24 to spend and the prices of the goods are Px S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y)-MIN(5X,Y). The consumer has S24 to spend and the prices of the goods are Px S3 and Py...
2) (18 points) For each of the following situations, draw the consumer's budget constraint and indicate the consumer's optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled. a) U(X,Y)-X1"Y34. The consumer has S24 to spend and the prices of the goods are Px - S2 and Py S3. Note that the MUx-(1/4)X-3*Y34 and the MUy (3/4)X14Y-14. b) U(X,Y) MIN(5X,Y). The consumer has S2 4 to spend and the prices of the goods are Px...
Question 1 Sue is maximizing her utility. Her MU/PX - 10 and Muy -40. Then the price of Y must be ОООО Question 2 only m e Ellen is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 25. Ellen's the prices of X and Y are the same. the price of good X is twice that of good Y. the price of good Y...
Suppose there are two consumers, A and B, and two goods, X, and Y. Consumer A's utility function is given by: Ua(X,Y) = X*Y^3 Consumer B's utility function is given by: Ub (X,Y) = X*Y Marginal Utilities for A: MUx =Y^3 , MUy = 3X*Y^2 Marginal Utilities for B: MUx = Y, MUy = X Initial endowments: Person A has 40 units of good X and 20 units of good Y Person B has 30 units of good x and...
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
can somebody help me to check if Im correct number 30&31? and I got stuck number 32 Take Test: Midterm Exam QUESTION 30 A consumer is maximizing their utility and consumes both hamburgers and fries. The price of hamburgers exceeds that of fries. Which of the following statements necessary must be correct? The MU from hamburgers exceeds the MU from fries The MU from fries exceeds the Mu from hamburgers The total utility from fries exceeds the total utility from...