7.5. Continue assuming a, b -^. Draw two indifference curves of the utility function. To get...
Consider a utility function u(x,y) = Xayb, where 0くaく1 and 0 < b 〈 1. Also assume that x,y>0 7.1. Derive the marginal utility of x and the marginal utility of y and state whether or not the assumption that more is better is satisfied for both goods. 7.2. Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x?What does it mean in words? 7.3. What is MRS.y? 7.4. Suppose a, b- Wht...
please answer all questions 2. Draw the graph of an indifference curve map for the utility function U(X,Y)= XY. Put good X on X-axis and good Y on Y-axis. Draw at least 3 indifference curves and label the utility level for each indifference curve. Explain why or why not do the indifference curves cross each other on the map.
3) Consider the utility function U = 3FC. a. Carefully sketch the indifference curve for utility of 24. Label four market baskets on the indifference curve. (Hint: In Desmos, enter 24=3xy) b. Carefully sketch the indifference curve for utility of 48. Label four market baskets on the indifference curve. c. Which market basket gives highest utility: (0,10) or (2,8) or (5,5) or (9,2)? Rank the market baskets and identify them on your graph. 4) Consider the utility function U =...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 e) On a graph with x on the horizontal axis and y on the vertical axis, draw a typical indifference curve (it is not exactly to scale, but it needs to reflect accurately whether there is a diminishing MRS x,y). Also, indicate on your graph whether the indifference curve will intersect either or both exes. label the curve U1. f) on the same graph draw a second indifference curve...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
Question 6 (Utility). Suppose a consumer's utility function is given by U(x, x)=x7x2 Draw an indifference curve with a value of 10 and an indifference curve with a value of 16. Label two points on each indifference curve as well as the axes. a) b) What is the marginal utility with respect to xi? What is the marginal utility with respect to x? What is the
Indifference curves and utility: Consider the utility function ? (?1, ?2) = 6?1^1/2 + ?2 that describes Moe’spreferences. For the following, think of q1 as the variable you would graph on the horizontal axis. a. Derive an expression for his marginal utility (U1) from a small increase in q1 holding q2 fixed. Also, find U2. b. What is Moe’s marginal rate of substitution (MRS)? Give a brief (2 sentences maximum) intuitive description of what MRS represents. c. Given your answer...
For each of the following utility functions, draw an indifference map with 3 in curves. Be sure to label your axes, and label your curves as IC1, IC2, and ICs, where difference 1 U2 U (X,Y)=3X+5Y U3. (5 points each) a. U(X, Y) U(X, Y) -X2 + ln(Y) min(3X,5Y) c. d.
Q3: a. Consider a Cobb-Douglas Utility Function Find marginal utility of Y. Does marginal utility of depend on the level of consumption of X? how do you know? Explain b. Find slope of the indifference curve. c. Find MRS and draw the indifference curve for above function.