a consumer has a utility function u = x^1/2y^1/2. prices are px = 2 and py...

a consumer has a utility function u = x^1/2y^1/2. prices are px = 2 and py = 3. she maximizes utility purchasing 6 units of good x. her income is equal to m = ________

Expert Solution

Given the utility function and the price of the respective commodity x and y. Equilibrium quantity of commodity x is also given. Here, income, m has been calculated with the help of utility function, the price of the commodities x and y and the budget constraint.

Rahul Sunny answered 2 years ago

Consider the following utility function: U(x, y) = 10x + 2y. A consumer faces prices of...

Consider the following utility function: U(x, y) = 10x + 2y. A consumer faces prices of px = 1 and py = 2. Assuming that graphically good x is on the horizontal axis and good y is on the vertical axis, suppose the consumer chooses to consume 5 units of good x and 13 units of good y. What is the marginal rate of substitution (MRS) equal to?

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

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Suppose that a consumer has the following demand function: x ∗ (px, py, m) = 3mpy/px...

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Consider the following utility function U(X,Y) = X^1/4Y^3/4 Initially PX = 2 PY = 4 I...

Consider the following utility function U(X,Y) = X^1/4Y^3/4 Initially PX = 2 PY = 4 I = 120 Suppose the price of X changes to PX = 3. Perform a decomposition and fill in the table X Y Substitution Effect Income Effect Total Effect

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...

Consider the following utility function: U = 100X0.10 Y 0.75. A consumer faces prices of Px...

Consider the following utility function: U = 100X0.10 Y 0.75. A consumer faces prices of Px = $5 and Py =$5. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 7 units of good X and 15 units of good Y. Then the marginal rate of substitution6 is equal to: MRS = . (Enter your response rounded to two decimal places. Do not forget to...

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...

Consider the following utility function: u(x, y) = x2/3y1/3. Suppose that Px = 4, Py =...

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