Question
In: Economics
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}
Solutions
Expert Solution
we have U(x, y) = min(x+2y, 3y)
The corner points of the L-shaped indifference curves are when (indifference curves of complementary goods are L-shaped):
x + 2y = 3y
=> x = y
Thus, two indifference curves are shown as below:
Rahul Sunny answered 2 years agoRelated Solutions
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
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1) Draw the indifference curves where U=6 and U=12.
2) Draw Amy's typical demand curve for good x.
(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
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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
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Initially, the prices were px = 4 and py = 1, and the individual
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Then, px increases to $ 6 (py does not change), and the individual
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Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1,000xy...
Jim’s utility function is U(x, y) = xy. Jerry’s utility function
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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
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$10 and the price of y is $15, how much money would she need
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bundle (10, 25).
Select one:
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d. $209.
e. $440.
(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...
PROVIDE EXPLANATION 2. Elmer’s utility function is U(x, y) minx, 5y. If the price of...
PROVIDE EXPLANATION
2. Elmer’s utility function is U(x, y) minx, 5y. If the
price of x is $25, the price of y is $10, and Elmer
chooses to consume 5 units of y, what must Elmer’s income be?
a. $1,350
b. $175
c. $775
d. $675
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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
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of M.
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(b) Suppose M = 72 and p falls from 9 to 4. Calculate the
income and substitution effects of the price change.
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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
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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
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