Question
In: Economics
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.
Solutions
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
y.
1) Draw the indifference curves where U=6 and U=12.
2) Draw Amy's typical demand curve for good x.
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...
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.
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}.
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
is U(x, y) = 1,000xy + 2,000. Tammy’s utility function is U(x, y) =
xy(1 - xy). Oral’s utility function is -1/(10 + xy. Billy’s utility
function is U(x, y) = x/y. Pat’s utility function is U(x, y) =
-xy.
a. No two of these people have the same preferences.
b. They all have the same preferences except for Billy.
c. Jim, Jerry, and Pat all have the same...
(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...
Let X ∼ Poisson(λ) and Y ∼ U[X, 2X]. Find E(Y ) and V ar(Y ).
Let X ∼ Poisson(λ) and Y ∼ U[X, 2X]. Find E(Y ) and V ar(Y
).
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
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}
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