3. If MU,1/Px1 > MU,2/PX2 is the consumer maximizing his utility? Explain how to maximize it if your answer is no?

Q: Amy is a chocolate lover and has a total of 50 dollars to spend this week. The price of a certain…

A: Given Utility function U(q)=q+50-pqq∈0,50PTotal budget=50Price of q=50

Q: 7.1. Consider preferences defined over the nonnegative orthant by (1, 12) ► (yı, 42) iff x1+I2 <…

A:

Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: Laptop Cost = 750 Drones Cost = 2000 Income = 15,000

Q: On what portion of the demand function does total revenue rise as price rises? The price of tea…

A: 1. Law of demand suggests that other things remain constant with a rise in the price of a commodity…

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: Suppose a consumer's utility is given by: u(x₁, x₂) = a√√/₁ + b₂√√/T₂ Where a= 8, and b = 7 If the…

A: Given; u(x1,x2)=ax1+bx2a=8 and b=7 P1=$5 P2= $9 I=$191

Q: Lara has preferences represented by the utility function U(x, y)  2x  2y. She consumes 10 units of…

A: here we calculate value of Y which are as follow-

Q: If Jaxson's consuming goods x and y where mrs>mrt, he can increase his utility by a. decreasing x…

A: If Jaxson's consuming goods x and y where mrs&gt;mrt, then he is getting more $ Marginal utility…

Q: 1. Is it impossible for two indifference curves to intersect one another? why? 2. What does it mean…

A: We will answer the first question only. Please resubmit the other question separately in case you…

Q: Luke has a monthly income of $80. He spends this money making telephone calls from home (measured in…

A: Given information: Luke's Monthly income of $80 Plan A: at 0 monthly fees, make calls for $0.50 per…

Q: a) Discuss the implications of these kinds of preferences. b) In the perfect complements case solve…

A: (Note: Since there are multiple questions, only the first three parts have been solved).    In…

Q: f the price of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on…

A: Answer is given below

Q: 22. Cameron's preferences can be represented by the utility function u(X, Y) = X0.2y04, If the…

A: We only answer one question so we will answer the first one. Please submit a new question specifying…

Q: consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price…

A: Given that the consumer prefer to consume one unit of good x with each unit of good y. This implies…

Q: Graphs of a consumer's indifference map and budget lines and possible demand curves: 130 100 15 Us…

A: The indifference Curve refers to the curve which shows all the combinations of two goods that give…

Q: Consumer spends $ 360 per week on two goods, X and Y. Px=$3 and Py= $2. His utility function is U =…

A: Utility function in economics represents the consumer’s preferences for goods and services. It is…

Q: Consider a utility function u(x, y) = x*y, where 0 0. %3D 1. Derive the marginal utility of x and…

A: Answer - Thank you for submitting the question but , we are authorized to solved only 3 sub parts.…

Q: A consumer buys Bread (B) and Milk (M) each week at prices of Rs. 10 and Rs. 8 respectively. Suppose…

A: Principal of equi-marginal explains well the situation of consumers equilibrium. It is through this…

Q: 2. Jie's preference is represented by the utility function U(x, y) = x0.5y0.5, where x and y are two…

A: We are going to find Compensating and Equivalence variation to answer this question. Note: As per…

Q: What is the marginal utility of good 2 for bundle (8,8)?

A: Given, U(x1,x2) = 7x1 + 2(x2)0.6 For finding the marginal utility of good 2, we need to…

Q: f the total utility of consuming the first three pieces of pizza were 50,80, and 95 respectively ,…

A: Total utility refers to the total satisfaction derived from consuming a good. It is measured in…

Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to…

A: U(X,Y) = X1/2*  Y1/2  PX = $1 PY = $1 Budget= $72

Q: Let a person's utility function over two goods, X and Y, be given by, U(X,Y) = 3X0.4y0.6. Let the…

A: At Optimal bundle, slope of indifference curve is equal to slope of budget constraint

Q: i. It is known that the indifference curve is convex. What does this tell you about the relationship…

A: Answer - Part"1" Answer -When Indifference curve shows that which give show the combination  of two…

Q: A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good…

A: In utility maximization problem, a consumer attains his equilibrium or optimal consumption bundle…

Q: 8. Pele enjoys coffee (C) and tea (T) according to the function U(C,T) = 6C + 8T (a) What does her…

A: b) The given utility function is perfect substitute utility function, U(C,T) = 6C+8T i) Price of…

Q: Assume that Bob's income is $21 and he can spend his money on either apples or bananas. The price of…

A: The term “budget constraint” refers to all possible combinations of products and services that a…

Q: What are the two conditions that are met if a consumer is maximizing utility?

A: A consumer is said to be in a state of equilibrium when he or she maximizes his utility, given…

Q: 10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: Pele enjoys coffee (C) and tea (T) according to the function U(C,T) = 6C +8T (a) What does her…

A: The price of tea is PT = $3 and the price of coffee is PC = $2. The income(Y) or the budget that…

Q: Tom went to a pizza by the slice bar with Jerry. Tom loves pizza (x), and prefers it, even more,…

A:

Q: With a high stress job that oversees the public health of a nation, Tony loves to eat pomegranate…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1. If the consumer can only buy product x, how much will the consumer buy and what will be the total…

A: PX= $4 Py= $2 M= $20

Q: Consider a consumer whose preferences are represented by a utility function u(x, y) = a0.5y5 Are…

A: The utility function can be defined as the measure of a group of goods and services preferred by…

Q: 4.. If the preferences are concave, will the consumer ever consume both of the goods together?

A: Meaning of Consumer Surplus: The term consumer surplus refers to the situation under which the…

Q: Pele enjoys coffee (C) and tea (T) according to the function U(C,T) = 6C + 8T (a) What does her…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Consumer spends $360 per week on two goods, X and Y. PX=$ 3 and PY=$2. His utility function is U=…

A: The equilibrium in consumer behavior arrives when a buyer extracts the highest amount of utility…

Q: Alice has preferences described by utility function u(x1, x2)3(x1+2*x2)^0.5. Suppose that p1=4,…

A: The utility function is: U(x1,x2)= (x1+2*x2)0.5 Calculating the MRS: MRS= MUx1/MUx2 MUx1=…

Q: Question 2. A consumer has the utility function U(q1,q2) = q10.5 + q2 Assume p2 = 1 and Y = 100.…

A: We are given :  Utility function : u = q10.5 + q2Budget: Y (income) = 100 P2 = 1 P10  = 1 , P11 = 4…

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Given Information: Consumer spends =$450 per week Two goods = X and Y price of X and Y : Px = $5…

Q: A consumer who has spent all of her income on clothes and food and finds that her marginal-utility…

A: Answer: A purchasing more clothes and less food

Q: Kai spends his income on lime (L) and ginger water (G). Lime is priced at $2, while ginger water…

A: PL = 2 , PG=1 and I = 30

Q: 22. Cameron's preferences can be represented by the utility function u(X,Y) = x02y04 If the market…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 22. Cameron's preferences can be represented by the utility function u(X,Y) = X02yo, If the market…

A:

Q: PROBLEM (2) A consumer has preferences over bundles of apples (x) and oranges (y) represented by the…

A: The marginal rate of substitution means some units of one good are sacrificed in order to gain an…

Q: Bob has utility function U(x,y)=x²+y over goods x and y a) Do we have a name for this type of…

A: Consumer preferences for a collection of products and services are measured using the utility…

Q: Suppose that a consumer with the utility function U X=5 and Y=10. If the prices of the two goods are…

A: U=X0.25Y0.75 Differentiate U w.r.t X to get MUx MUx = dU /dX =&gt; MUx = 0.25 (Y/X)0.75 Put X=5 and…

Q: Teddy has preferences for stuffed animals (x) and audiobooks (9) illustrated by the utility function…

A: Given, Utility function, U(x,y) = x23y13 a) The given utility function is Cobb Douglas utility…