Question
In: Economics
cosnider the following utility fucntions over goods X and Y for two indiviuals: jills utility function...
cosnider the following utility fucntions over goods X and Y for two
indiviuals:
jills utility function is Uj(x,y) = 6min(X,Y)
bob's utility function Ue(x,y) = 6x + 3y
A) for Janet, draw her indifference curve map for two specific
utility levels: Utility = 6 and utility = 12.
indicate key value of X and Y on the proper axis. label the
indifference curves U=6 and U=12.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose that there are two goods, X and Y. The utility function is ?(?, ?) =...
Suppose that there are two goods, X and Y. The utility function
is ?(?, ?) = 5?2 ?. The price of Y is $2 per unit, and
the price of X is P. Income is $2,400.
A.) Derive the demand curve and state the law of demand in
relation to your product or service.
B.) ? = 800 − 10?0.5 . Calculate elasticity of demand
when Q=100, Is the good elastic?
C.) ? = 800 − 10?0.5 − 0.5?. Calculate...
Suppose that there are two goods, X and Y. The utility function is ?(?, ?) =...
Suppose that there are two goods, X and Y. The utility function
is ?(?, ?) = 5?2 ?. The price of Y is $2 per unit, and
the price of X is P. Income is $2,400.
A.) Derive the demand curve and state the law of demand in
relation to your product or service.
B.) ? = 800 − 10?0.5 . Calculate elasticity of demand
when Q=100, Is the good elastic?
C.) ? = 800 − 10?0.5 − 0.5?. Calculate...
Imagine a person’s utility function over two goods, X and Y, where Y represents dollars. Specifically,...
Imagine a person’s utility function over two goods, X and Y,
where Y represents dollars. Specifically, assume a Cobb-Douglas
utility function:
U(X,Y) = Xa Y(1-a)
where 0<a<1.
Let the person’s budget be B. The feasible amounts of
consumption must satisfy the following equation:
B = pX+Y
where p is the unit price of X and the price of Y is set to
1.
Solving the budget constraint for Y and substituting into the
utility function yields
U =...
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....
For two goods x and y, the individual’s preferences are measured by the utility function ?(?,?)=...
For two goods x and y, the individual’s preferences are measured
by the utility function ?(?,?)= ?0.5?0.5, the
price of good y is $10, income equals $100, and the price of good x
increase from $5 to $10. Draw the price consumption curve for x and
y and compute the slop of the price consumption curve. Show your
calculation step by step.
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...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3...
Tamer derives utility from goods X and Y, according
to the following utility function: U(X,Y)= 3 X . His budget
is $90 per period, the price of X is PX=$2, and the price of Y is
PY=$6.
1. Graph the indifference curve when U= 36
2. What is the Tamer’s MRS between goods X and Y at the
bundle (X=8 and Y=2 )? What does the value of MRS means? (أحسب
القيمة واكتب بالكلمات ماذا تعني القيمة)
3. How much...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3...
Tamer derives utility from goods X and Y, according to the
following utility function: U(X,Y)= 3 X square root of bold Y . His
budget is $90 per period, the price of X is PX=$2, and the price of
Y is PY=$6.
1. Graph the indifference curve when U= 36
2. What is the Tamer’s MRS between goods X and Y at the bundle
(X=8 and Y=2 )? What does the value of MRS means? (أحسب القيمة
واكتب بالكلمات ماذا...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3...
Tamer derives utility from goods X and Y, according to
the following utility function: U(X,Y)= 3 X . His
budget is $90 per period, the price of X is PX=$2, and
the price of Y is PY=$6.
1. Graph the indifference curve when U=
36
2. What is the Tamer’s MRS between goods X
and Y at the bundle (X=8 and Y=2 )? What does the value of MRS
means? (أحسب القيمة واكتب بالكلمات ماذا تعني القيمة)
3. How much...
A consumer purchases two goods, x and y and has utility function U(x; y) = ln(x)...
A consumer purchases two goods, x and y and has utility
function U(x; y) = ln(x) + 3y. For this utility function MUx =1/x
and MUy = 3. The price of x is px = 4 and the price of y is py = 2.
The consumer has M units of income to spend on the two goods and
wishes to maximize utility, given the budget.
Draw the budget line for this consumer when M=50 and the budget
line when...
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