Question
In: Economics
Amy has the utility function U=min(2x+y, x+2y) for goods x and y. 1) Draw the indifference...
Amy has the utility function U=min(2x+y, x+2y) for goods x and y.
1) Draw the indifference curves where U=6 and U=12.
2) Draw Amy's typical demand curve for good x.
Solutions
Rahul Sunny answered 1 month agoRelated Solutions
(a) If your utility is represented by u(x,y) = min(x+2y,2x+y);what do you indifference curves look like?...
(a) If your utility is represented by u(x,y) =
min(x+2y,2x+y);what do you indifference curves look like?
(b) Given your answer in (a), obtain the MRS (marginal rates of
substitution).
(c) Suppose the prices of x and y are px = $3 and py = $1 and
you have 100 dollars. What would you choose?
(d) If px decreases to $1; what would you choose?
(e) Use the Slutsky decomposition to decompose the total price
effect into the substitution effect and...
(a) If your utility is represented by u(x; y) = min(x+2y; 2x+y);what do your indi¤erence curves...
(a) If your utility is represented by u(x; y) = min(x+2y;
2x+y);what
do your indi¤erence curves look like?
(b) Given your answer in (a), obtain the MRS (marginal rates of
sub-
stitution).
(c) Suppose the prices of x and y are px = $3 and px = $1 and
you
have 100 dollars. What would you choose?
(d) If px decreases to $1; what would you choose?
(e) Use the Slutsky decomposition to decompose the total price
e¤ect
into the...
(a) If your utility is represented by u(x; y) = min(x+2y; 2x+y);what do your indi¤erence curves...
(a) If your utility is represented by u(x; y) = min(x+2y;
2x+y);what do your indi¤erence curves look like?
(b) Given your answer in (a), obtain the MRS (marginal rates of
sub- stitution).
(c) Suppose the prices of x and y are px = $3 and px = $1 and
you have 100 dollars. What would you choose?
(d) If px decreases to $1; what would you choose? (e) Use the
Slutsky decomposition to decompose the total price e¤ect into the...
sketch two indifference curves for people with each of the following utility function U(x,y) = min...
sketch two indifference curves for people with each of the
following utility function U(x,y) = min {x+2y,3y}
Let the Utility Function be U=min { 2X , Y }. Find the compensated demands for...
Let
the Utility Function be U=min { 2X , Y }. Find the compensated
demands for X and Y by solving the Expenditure Minimization
Problem.
For one purpose, the utility function of the consumer is u(x,y)=4?x+2y for maximum utility. 1. For...
For one purpose, the utility function of the consumer is
u(x,y)=4?x+2y for maximum utility.
1. For one purpose, the customer's income is I, and the price of
X is Px and the price of Y is Py. Obtain the demand function of
this person's Y ash through Px, Py, I.
2. For one purpose, the consumer has an income I = 40, and
initially the price of Px=1, and the price is Py=1.
(1) What is the difference between the...
An individual has the utility function u = min (x, y). His income is $ 12....
An individual has the utility function u = min (x, y). His
income is $ 12.
Initially, the prices were px = 4 and py = 1, and the individual
consumed the basket x = y = 2.4.
Then, px increases to $ 6 (py does not change), and the individual
now consumes the basket
x = y = 1.71.
a) Calculate the compensatory variation of this price change.
b) Calculate the equivalent variation of this price change.
c) On...
Esther consumes goods X and Y, and her utility function is U(X,Y)=XY+Y For this utility function,...
Esther consumes goods X and Y, and her utility
function is
U(X,Y)=XY+Y
For this utility function,
MUX=Y
MUY=X+1
a. What is Esther's MRSXY?
Y/(X + 1)
X/Y
(X + 1)/Y
X/(Y + 1)
b. Suppose her daily income is $20, the price of X is $4
per unit, and the price of Y is $1 per unit. What is her
best choice?
Instructions: Enter
your answers as whole numbers.
X =
Y =
What is Esther's utility when her...
Suppose a consumer has a utility function u(x, y) = 2x + 3y. The consumer has...
Suppose a consumer has a utility function u(x, y) = 2x + 3y. The
consumer has an income $40 and the price of x is $1 and the price
of y is $2. Which bundle will the consumer choose to consume?
Determine the demand functions for x and for y. Repeat the exercise
if, instead, the consumer’s utility function is u(x, y) = min{x,
2y}.
Jane’s utility function is U(x, y) = x + 2y, where x is her consumption of...
Jane’s utility function is U(x, y) = x + 2y, where x is her
consumption of good X and y is her consumption of good Y. Her
income is $2. The price of Y is $2. The cost per unit of X depends
on how many units she buys. The total cost of x units of X is the
square root of x.
The bundle ( 1 4, 3 4 ) is Jane’ s utility maximizing choice,
given her budget....
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