A consumer has $100 and would like to purchase food (F) and gas (G). Suppose their utility is given by: U (F, G) = F 0.8G0.2 .

Q: Which statement BEST describes the principle of diminishing marginal utility? As an individual…

A: According to the law of diminishing marginal utility, as we consume more and more of a good then the…

Q: Would this person be maximizing utility?: Bobby eats 2 sandwiches and drinks 3 sodas. The last…

A: There are two goods, i.e., sandwiches and sodas. Bobby eats 2 sandwiches and drinks 3 sodas.…

Q: Suppose that consumer has the following utility function: U(X,Y) = XªY® where 1 > a > 0 and 1 > b>0…

A: In economics, the marginal rate of substitution (MRS) is the quantity of one good that a customer is…

Q: Badger Madison consumes only beer and sausages. His income is £100. Beer costs him £0.50 per can and…

A: Answer - Given in the question- Badger Madison consumes only beer and sausages.His income is 100…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility is maximised at a point where marginal utility per dollar for all the goods are equal.

Q: 6)       According to the law of diminishing marginal utility, _________? A) Additional consumption…

A: Law of diminishing marginal Utility: It says that by consuming more goods marginal utility will…

Q: An individual has the utility function U=4X 0.5Y 0.5 and can buy good X at £ 2 a unit and good Y…

A: Answer to the question is as follows :

Q: You run a foundation that provides help to families during the holiday season. You distribute both…

A: Budget line shows various combination of 2 goods that a person can buy, given the prices of the…

Q: Which of the following are true regarding the law of diminishing marginal utility? The more a person…

A: The marginal utility derived from each additional unit decreases as consumption increases, according…

Q: If BC2 is the relevant budget constraint, then the consumer will purchase bundle

A: Budget constraint represents all the combination of goods which the consumer can purchase with his…

Q: Assume that a person's utility function is given by the following function: TU = 2X/2y/2 Assume also…

A: utility function is an important concept that measures preferences over a set of goods and services.…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

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

A: Consumers behavior is inclined towards utility maximization, whereas producers behavior is inclined…

Q: The budget set, or budget constraint, in the graph shows the possible combinations of brownies and…

A: Budget line shows graphically the possible combinations of two goods which a consumer can purchase…

Q: Consider the consumer whose tastes and preferences for (X) and (Y) can be characterized by the…

A: The utility function can be written as follows: The budget constraint can be written as follows:

Q: Jane receives utility from days spent traveling on vacation domestically (D) and days spent…

A: Given; Utility function; U(D, F)=10DFPrice of a day spent traveling domestically=$100Price of…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Individual M consumes product F Per unit product F= $5 Total income=$2,000   Maximum amount of food…

Q: Complete each of the following sentences: Your tastes determine the _____________ you derive from…

A: Whenever consumers consume the good, they derive utility from consuming it which determined by the…

Q: Diogo has a utility function, U(q1, 92) = 91 0.8 0.2 92 where 91 is chocolate candy and q, is slices…

A: Lagrangian multiplier can be used to optimize an objective function subject to a particular…

Q: Suppose now we want to minimize our expenditure while achieving a certain amount of utility. So say…

A:

Q: Consider the following utility function for goods x1 and x2:   u(x1,x2)=(x1+x2)2    What type of…

A: Utility function is a representation of individuals preferences for goods and services.

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: A rational consumer would always aim at maximizing his/her utility. So a consumer would choose the…

Q: Suppose Elizabeth’s preferences can be described by the Cobb-Douglas utility function, u(x_1, x_2 ).…

A: Given information Elizabeth has Cobb-Douglas  utility function U=u(X1,X2) P1 =price of X1 P2=price…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: Assume that Rossi consumes only bananas and avocado. Fortunately, she likes both goods. The…

A: X1 represents consumption of bananas per week X2 represents consumption of avocado per week.…

Q: Suppose a consumer’s utility function is u = x_1^(3/2) x_2^(3/2) . She spends her budget of £27 for…

A: Income = 27  Price of x1 : p1 = 6 Price of x2 : p2 = 6  Budget Constraint without discounts : P1x1 +…

Q: Dave currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket, his…

A: Marginal utility is the utility gained when an additional unit of a good is consumed. Ina two goods…

Q: Please show your answer step by step with reasons. (i) A consumer has income of £3,000. Apple juice…

A: In economics, a spending plan limitation addresses every one of the mixes of labor and products that…

Q: QUESTION 8 If a consumer's preferences are represented by the utility function: U(x,y)=min{4x,y}…

A: This is a perfect complements utility function. Perfect complements are those goods which are…

Q: Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set…

A: Indifference curve show the relationship between consumption of two goods and service , consume by…

Q: Suppose that a typical consumer’s utility function is characterized by the following relation…

A: According to question resource available to the consumer is 160 birr . Taking birr as the currency…

Q: Diogo has a utility function, 0.2. 0.8 where q, is chocolate candy and q2 is slices of pie. If the…

A: The measure that illustrates satisfaction or welfare of a consumer being a function of the real good…

Q: Another instance when people are likely not to spend a dime (or a minute) on an item is when they…

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

Q: A consumer has S600 to spend on good x and y. Her preferences can be represented by the utility…

A: U(x,y)=100lnx+y Px=$10 Py=$5 M=$600 Optimal bundle is obtained when marginal utility per dollar of…

Q: Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to…

A: The law of diminishing marginal utility states that, when the consumer consumes a commodity without…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and…

A:

Q: Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will…

A: Here, it is given thatUtility function, U(x, y) = 5x + 2y  where x and y depicts that they are…

Q: The utility function of a consumer is u = √x + 2y. (a) Calculate how much MRS of that consumer when…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of a good…

Q: Suppose there are 2 commodities ( good x and good y( and the consumer faces the following prices,…

A: In consideration of the bundle of 10 units of x and 0 unit of y, total cost will be $10 ( = $1*10 +…

Q: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Marginal utility is the additional utility gained from consuming an additional unit of the good.

Q: Suppose the following table reflects the total satisfaction (utility) derived from eating pizza:…

A: Law of DMU states that when a person consumes a commodity, the satisfaction he/she derives from the…

Q: find i

A: An indifference curve is a graph which shows combination of two goods which give the consumer equal…