Question
In: Economics
Jen likes x but does not like y. For every y he consumes he has to...
Jen likes x but does not like y. For every y he consumes he has to be compensated with ½ x.
Draw the indifference curves. Is there a budget constraint?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Rob consumes two goods, x and y. He has an allowance of $50 per week and...
Rob consumes two goods, x and y. He has an allowance of $50 per
week and is not endowed with either of the goods. If the price of
good x increases and his substitution and income effects change
demand in opposite directions,
a. good x must be a Giffen good.
b. good x must be an inferior good.
c. WARP is violated.
d. good x must be a normal good.
e. There is not enough information to judge whether good...
Bob always consumes creamer (x) and coffee (y) in fixed proportions. He uses two creamers for...
Bob always consumes creamer (x) and coffee (y) in fixed
proportions. He uses two creamers for every coffee such that his
utility function is given by U(x,y)=min{x,2y}. Given that creamer
costs $1 and a coffee costs $3, find Bob's optimal consumption of
creamer and coffee if he has $25 to spend.
A consumes two goods, x and y. A ’s utility function is given by u(x, y)...
A consumes two goods, x and y. A ’s utility function is given
by u(x, y) = x 1/2y 1/2
The price of x is p and the price of y is 1. A has an income
of M.
(a) Derive A ’s demand functions for x and y.
(b) Suppose M = 72 and p falls from 9 to 4. Calculate the
income and substitution effects of the price change.
(c) Calculate the compensating variation of the price
change....
U=U(X,Y)= 10X^0.9 * Y^0.1 the customer more likes X or Y? And what is the reason...
U=U(X,Y)= 10X^0.9 * Y^0.1
the customer more likes X or Y? And what is the reason
for your answer?
Thank you:)
(1) calculate the MUx and MUy
(2) the customer more likes x or y?
(3) what is MRSxy
The utility of an agent who consumes x amounts of good X and y amounts of...
The utility of an agent who consumes x amounts of good X and y
amounts of good Y is given by the following utility function: u =
U(x, y) = 3 + 2x 2 + xy + y 2 Assume that the agent has an income
equal to £10, that the price of good X is px = £2 and X and the
price of good Y is py = £1. a) [3 marks] Find the budget constraint
of the...
A consumer consumes two products X and Y. The price of product X is $2 and...
A consumer consumes two products X and Y. The price of product X
is $2 and price of product Y is $4. Suppose xx-axis represents
quantity of product X, and y-axis represents quantity of product Y.
The optimal consumption bundle is (10, 5). If we plot the
consumer's indifference curves on this graph, can you say what the
slope of the indifference curve is at point (10,5)?
A) No. There is not sufficient information about preferences to
answer that.
B)...
On the planet Homogenia every consumer who has ever lived consumes only two goods, x and...
On the planet Homogenia every consumer who has ever lived
consumes only two goods, x and y, and has the utility function U(x,
y) = xy. The currency in Homogenia is the fragel. In this country
in 1900, the price of good 1 was 1 fragel and the price of good 2
was 2 fragels. Per capita income was 84 fragels. In 2000, the price
of good 1 was 3 fragels and the price of good 2 was 4 fragels....
On the planet Homogenia every consumer who has ever lived consumes only two goods, x and...
On the planet Homogenia every consumer who has ever lived
consumes only two goods, x and y, and has the utility function U(
x, y) = xy. The currency in Homogenia is the fragel. In this
country in 1900, the price of good 1 was 1 fragel and the price of
good 2 was 2 fragels. Per capita income was 108 fragels in 1990. In
2000, the price of good 1 was 3 fragels and the price of good 2...
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...
An individual likes to consume 2 goods X and Y . The utility function for this...
An individual likes to consume 2 goods X and Y . The utility
function for this individual is U = X+0.5Y . What
is the marginal utility of X and Y ?
The individual has an income of $90. The price of X is $10 and
the price of Y is $5. What is the optimal
consumption
bundle of this individual? Graph the
individuals optimal bundle with the budget line and indierence
curve. (answer: Infinitely many solutions).
Do the same...
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