A consumer consumes 2 goods, x and y. If the price of_good x trebles and the price of good y doubles and his income quadruples then his budget constraint will Move further away from the origin without changing slope b. Move closer to the origin without changing slope а. c. Not move. Move further away from the origin and change slope d

Q: A consumer buys only two goods, X and Y. No other goods exist and there is no possibility of saving.…

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

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

A:

Q: Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS…

A: Answer: Given, Marginal utility of book MUB=2Marginal utility of DVD MUD=13PB=$1PD=$12 The…

Q: For a rational consumer who has to choose between two goods in the context of budget constraints,…

A: Meaning of Consumer Welfare: The term consumer welfare refers to the situation under which an…

Q: ay must a budget constraint have a negative slope? O Income and quantity demanded are inversely…

A: Budget constraint measures the combinations of two goods that a consumer can buy with the given…

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A: The budget line is a graphical representation of all possible combinations of the two commodities…

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is…

A: Equation for budget constraint: PX * X+ PY * Y = M where, PX and PY are the price of goods on X and…

Q: 4. Sompa consumes two goods (x and y) with a total income of GHS 20 and the price of the two goods…

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

Q: 1. X1 and x2. The price of x, is $80 per unit and the price of x2 is $40 per unit; x1 and x2 are…

A: Disclaimer :- As you posted multipart questions we are supposed to solve the first 3 questions only…

Q: A consumer consumes 2 goods, x and y. If the price of good x trebles and the price of good y doubles…

A: Situation 1 Let the initial price of good x be Px and good y be Py and income be M. The slope of…

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A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: Kari requests two goods: X and Y. The utility function is given by: U(XY)=X-Y. Prices of X and Y is…

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Q: If we observe that a consumerâ s budget constraint has shifted inward, we can assume that the…

A: Consumer Budget constraints shows the all combinations of goods and services that a consumer…

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A: The condition for maximum utility is as follows.

Q: 1. Alice has a monthly lunch budget of 360 dollars which she spends on either burgers (B) or pizza…

A: b) The consumers problem is:   max u(B,Z) =B1/2+4Z1/2B+2Z=45And the Lagrangian function required…

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A: In the mentioned question we have been asked what will happen if there is change in the income of…

Q: c) Consider John who consumes two goods, (X and Y), with prices ?? = ?$35, ?? = ?$25 and income I…

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

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A: Utility function u(x, y) = 2min{x, y}+10 consumer income of $16 the price of good x is $3 the price…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

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Q: You consume only soda and pizza. One day, the priceof soda goes up, the price of pizza goes down,…

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

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Q: Draw the budget constraint for a person with income of $1,000 if the price of Pepsi is $5 and the…

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Q: Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS…

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.

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A: Budget constraint shows combinations of two goods that can be bought with the given level of income.

Q: consider a consumer who consumes only two goods :peas and beans. She has an income of K10, the price…

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

Q: Felipe consumes two goods, x and y. Their budget line at the beginning of the year had intercepts…

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

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Margaret consumes two commodities x and y. Her utility function is u(x, y) = min{3x, y}. The price…

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Q: A consumer buys only two goods, X and Y. No other goods exist and there is no possibility of saving.…

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

Q: Consider two goods, books and hamburgers. The slope of the consumer's budget constraint is measured…

A: Slope of budget constraint:- Slope of budget constraint  is the ratio of the prices of two goods. It…

Q: In the diagram, assume the initial budget line is BL1 and the final budget constraint is BL2. Which…

A: The budget constraint is the graphical representation of all the combinations of the two goods that…

Q: Jeremy consumes only two goods, X and Y, and faces the following utility function: U = XY. The…

A: Answer: Given, Utility function: U=XYMUX=YMUY=XInitial budgetI=$800Price of good X PX=$12.5Price of…

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

A: Since you have posted multiple questions, but according to the answering guideline, we are supposed…

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Q: Mark consumes only cookies and books. At his current consumption bundle, his marginal utility…

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Q: It is given that the price of goods X and Y are both Rs.10 each, a consumer consumes 10 units of X…

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Q: Assume the prices of product X and Y are $1.50 and $1.00, respectively, and that Mr. Chen has $24 to…

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Q: The prices of good A and good B are $3 and $2 respectively. Theodore has a budget of $29 to…

A: Price of A = 3 Price of B = 2  Income = 29  Consumption Bundle = (7 ,4 ) Budget line =&gt; 3A + 2B =…

Q: A consumer consumes only goods 1 and 2. The consumer's utility function is U(x1,x2)=ax1+3x2, where a…

A: U = ax1 + 3x2 The above utility function states that good x1 and good x2 are substitute goods.  In…

Q: Lorena uses her income to consume two goods. Originally, she was consuming at point (a), but then…

A: Lorena uses her income to consume two goods.

Q: The budget constraint for a consumer who only buys apples (A) and bananas (B) is PAA + PBB = I where…

A: A consumer maximizes his utility by consuming at a point where the budget constraint of the…

Q: Suppose a consumer has income of dollars 20 which to be spent on good B and A. Good B cost dollar 4…

A: The indifference curve shows the various combination of two goods that gives the same utility on the…