Suppose a consumer has preferences represented by the utility function U(X,Y) = MIN[X,2Y]. Suppose PX =...

Suppose a consumer has preferences represented by the utility function U(X,Y) = MIN[X,2Y]. Suppose PX = 1 and PY = 2. Draw the Income Consumption Curve for this consumer for income values M = 100, M = 200, and M = 300. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through that bundle.

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Rahul Sunny answered 2 hours ago

A consumer has his preferences represented by the utility function U(x,y) = min {5x + 4y,...

A consumer has his preferences represented by the utility function U(x,y) = min {5x + 4y, 4x + 7y} if x is on the horizontal axis and y is on the vertical axis, what is the slope of his indifference curve at the point (10,10) a. -4/7 b. -5/4 c. -4/5 d. -7/4 e. -5/7

"Suppose a consumer has preferences represented by the utility function U(X,Y) = X(^2)Y Suppose Py =...

"Suppose a consumer has preferences represented by the utility function U(X,Y) = X(^2)Y Suppose Py = 1, and the consumer has $360 to spend. Draw the Price-Consumption Curve for this consumer for income values Px =1, Px = 2, and Px = 5. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also for each bundle that the consumer chooses, draw the indifference curve...

Suppose a consumer has preferences represented by the utility function U(X,Y) = X2Y Suppose PY =...

Suppose a consumer has preferences represented by the utility function U(X,Y) = X2Y Suppose PY = 1, and the consumer has $300 to spend. Draw the Price-Consumption Curve for this consumer for income values PX = 1, PX = 2, and PX = 5. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference...

Suppose a consumer has preferences given by U(X,Y) = MIN[2X,Y]. Suppose PX = 1 and PY...

Suppose a consumer has preferences given by U(X,Y) = MIN[2X,Y]. Suppose PX = 1 and PY = 2. Draw the Income Consumption Curve for this consumer for income values • M = 100 • M = 200 • M = 300 To do this, carefully draw the budget constraints associated with each of the prices for good X, and indicate the bundle that the consumer chooses in each case. Also, be sure to label your graph accurately.

Consider a consumer with preferences represented by the utility function: u(x, y) = x1/4y1/2 Suppose the...

Consider a consumer with preferences represented by the utility function: u(x, y) = x1/4y1/2 Suppose the consumer has income M = 10 and the prices are px=1 and Py = 2. (a) Are goods x and y both desirable? (b) Are there implications for the utility maximization problem for the consumer from your finding in 1a? If so, explain in detail. (c) Derive the utility maximizing bundle.

Consider a consumer with preferences represented by the utility function: u(x; y) = x1/4y1/2 Suppose the...

Consider a consumer with preferences represented by the utility function: u(x; y) = x1/4y1/2 Suppose the consumer has income M = 10 and the prices are px = 1 and py = 2. (a) Are goods x and y both desirable? (b) Are there implications for the utility maximization problem for the consumer from your finding in a? If so, explain in detail.

Ella’s preferences can be represented by the utility function u(x,y) = min{5x, y}. If the price...

Ella’s preferences can be represented by the utility function u(x,y) = min{5x, y}. If the price of x is $10 and the price of y is $15, how much money would she need to be able to purchase a bundle that she likes as well as the bundle (10, 25). Select one: a. $475. b. $85. c. $425. d. $209. e. $440.

Brianna’s preferences can be represented by the utility function u(x,y) = min{x,y}. Initially she faces prices...

Brianna’s preferences can be represented by the utility function u(x,y) = min{x,y}. Initially she faces prices ($2,$1) and her income is $12. If prices change to ($3,$1) then the compensating variation Select one: a. There is not enough information to determine which variation is greater. b. is $2 more than the equivalent variation. c. is $1 less than the equivalent variation. d. equals the equivalent variation. e. is $1 more than the equivalent variation.

Let assume that a consumer has a utility function u(x, y) = xy, and px =...

Let assume that a consumer has a utility function u(x, y) = xy, and px = 1 dollar, py = 2 dollars and budget=50. Derive the followings. (3 points each) 1) Marshallian demands of x and y 2) Hicksian demands of x and y 3) Indirect utility function 4) Expenditure function 5) Engel curve

A consumer's preferences for food (x) and clothes (y) are represented by the utility function u(x,y)=...

A consumer's preferences for food (x) and clothes (y) are represented by the utility function u(x,y)= x + 2 ln(y). The prices of food and clothes are px and py euros/unit, respectively, and the consumer's income is I euros. A. (10 points) Describe the consumer's problem, including her budget constraints, and calculate her ordinary demand functions, x(px,py,I) and y(px,py,I). B. (10 points) For prices and income (px,py,I)=(1,1,3), calculate the substitution and income effects over the demand of y of a...

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