Pageof 3 Due November 1, 2Press Esc to exit full screenA. Jack enjoys a cup of cappuccino every morning, which is made with equal parts of steamed milk (m)and espresso(e). Suppose Jack's utility function U(m, e) = min(m, e). Graph Jack's indifference curveswhen U = 4 and U = 8.B. Leslie buys 2 goods: z and y. His utility function is U(z,y) = 5x+3y.1.Plot this consumer's indifference curves when U = 15 and U = 20.What is the shape of Leslie's indifference curves?3. For Leslie, how are these two goods related?C. Leslie's friend Tim has a different utility function for the same goods U(x, y) = √zy.1.Plot this consumer's indifference curves when U = 15 and Ū = 20.2. What is the shape of Tim's indifference curves?D.A consumer's utility function for goods 2 and y is U(z,y) = x+2y.2.1. Calculate the consumer's marginal utility for each good at (2,2) (Hint: marginal utility representsthe amount of utility the consumer gains by consuming one more unit of this good. You can calculate theMU for each good by calculating the utility gained by adding one of each good separately).MU₂2. What is the consumer's marginal rate of substitution at point (2,2) (Hint: MRS = )?MU3. Calculate the consumer's marginal utility for each good at (2,4)4.What is the consumer's marginal rate of substitution at point (2,4)?5.What pattern of marginal utility does this utility function exhibit for each good?E. A consumer's utility function for goods z and y is U(z,y) = x² + 4√y.1. Calculate the consumer's marginal utility for each good at (2, 2).2. What is the consumer's marginal rate of substitution at point (2, 2)3. Calculate the consumer's marginal utility for each good at (4,4).4. What is the consumer's marginal rate of substitution at point (4,4)?5. What pattern of marginal utility does this utility function exhibit for each good?F. Bridget has $100 to spend and enjoys apples A and oranges R. A pound of apples cost $2 and a poundof oranges cost $4.1. If Bridget were only buying apples or only buying oranges, how many pounds of each fruit can shebuy?2. Draw Bridget's budget constraint. What is the marginal rate of transformation?3. What does it mean if a point is inside or outside the line of the budget constraint?4. Suppose the price of oranges increased to $5. Draw Bridget's new budget constraint.5. What is the marginal rate of transformation? How does it compare to before? Why is this the case?6. Bridget worked overtime at her job to receive a $100 bonus. Now she has $200 to spend. Draw9

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Pageof 3 >Due November 1, 2Press Esc to exit full screenA. Jack enjoys a cup of cappuccino every morning, which is made with equal parts of steamed milk (m)and espresso(e). Suppose Jack's utility function U(m, e) = min(m, e). Graph Jack's indifference curveswhen U = 4 and U = 8.B. Leslie buys 2 goods: z and y. His utility function is U(z,y) = 5x+3y.1.Plot this consumer's indifference curves when U = 15 and U = 20.What is the shape of Leslie's indifference curves?3. For Leslie, how are these two goods related?C. Leslie's friend Tim has a different utility function for the same goods U(x, y) = √zy.1.Plot this consumer's indifference curves when U = 15 and Ū = 20.2. What is the shape of Tim's indifference curves?D.A consumer's utility function for goods 2 and y is U(z,y) = x+2y.2.1. Calculate the consumer's marginal utility for each good at (2,2) (Hint: marginal utility representsthe amount of utility the consumer gains by consuming one more unit of this good. You can calculate theMU for each good by calculating the utility gained by adding one of each good separately).MU₂2. What is the consumer's marginal rate of substitution at point (2,2) (Hint: MRS = )?MU3. Calculate the consumer's marginal utility for each good at (2,4)4.What is the consumer's marginal rate of substitution at point (2,4)?5.What pattern of marginal utility does this utility function exhibit for each good?E. A consumer's utility function for goods z and y is U(z,y) = x² + 4√y.1. Calculate the consumer's marginal utility for each good at (2, 2).2. What is the consumer's marginal rate of substitution at point (2, 2)3. Calculate the consumer's marginal utility for each good at (4,4).4. What is the consumer's marginal rate of substitution at point (4,4)?5. What pattern of marginal utility does this utility function exhibit for each good?F. Bridget has $100 to spend and enjoys apples A and oranges R. A pound of apples cost $2 and a poundof oranges cost $4.1. If Bridget were only buying apples or only buying oranges, how many pounds of each fruit can shebuy?2. Draw Bridget's budget constraint. What is the marginal rate of transformation?3. What does it mean if a point is inside or outside the line of the budget constraint?4. Suppose the price of oranges increased to $5. Draw Bridget's new budget constraint.5. What is the marginal rate of transformation? How does it compare to before? Why is this the case?6. Bridget worked overtime at her job to receive a $100 bonus. Now she has $200 to spend. Draw9

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