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- If a consumer consumes two goods (q1 and q2) and demand function of q1 is U/P1, which portion of his budget goes to q1.Suppose the utility function for a consumer is given by U = X + Y, where X and Y are a consumer's consumption of goods X and Y. Which of the following bundles does this consumer find indifferent between 10 units of X and 5 units of Y? You Answered a. 4 units of X, 10 units of Y b. 2 units of X, 13 units of Y c. 5 units of X, 7 units of Y d. 8 units of X, 8 units of YCan you also help me solve this? Suppose the utility function of U(x1, x2) = x11/2x21/2 and the budget constraint of p1X1+p2x2=m. Let's assume that p1=$1, p2=$2, and m=$120. Find the optimal bundle
- Consider the following utility function for goods x1 and x2: u(x1,x2)=(x1+x2)2 What type of preferences does this utility function represent and why?Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will choose which of the following bundles in order to maximize his/her utility? 1 unit of x and 2 units of y 10 units of x 2 units of y 2 units of x 4 units of ySuppose the utility function of U(x1, x2) = x11/2x21/2 and the budget constraint of p1x1+p2x2=m. Let’s assume that p1=$1.5, p2=$2, and m=$60. Find the optimal bundle. Also, specify the optimal bundle.
- Assume there is consumer, his utility function is U(x,y)=y/(100-x). If px = 1, py = 1, please show the demand function of x (as a function of m), and draw the Engel curve (the graph showing the relationship of m and the demand of x)Individuals in a market each have a total budget y to spend on two goods q1 and q2 at the prices p1and p2 respectively. Their preferences are described by the utility function below. I need help with question b) Find the expenditure function corresponding to these preferences.First household m=$2,500 per month, spends $125 dollars per month on electricity. Second household m=$10,000 per month and spends $200 per month on electricity. p1=0.1 and p2=1 x1=consumption of electricity and x2=everything else The preferences over electricity and other goods is described by a Cobb- Douglas utility function. What are the parameters of the utility function for each of the two households?
- Consider the utility function U(x,y)=3x +6y. An agent with a budget constraint of 15x + 5y = 30 will choose which of the following bundles in order to maximize his/her utility? 2 units of x and 0 units of y 2/3 units of x and 4 units of y 1 unit of x and 3 units of y 0 units of x and 6 unit of y 1/2 unit of x and 1 unit of yFind the optimal bundle using the following utility functions and budget constraints. 1. U(x1,x2)=3x1+2x2 and6x1+2x2 =242. U(x1,x2)=x1+2x2 and3x1+6x2 =483. U(x1,x2)=min{x1,x2}and4x1+2x2 =484. U(x1,x2)=min{4x1,2x2}and2x1+3x2 =36Given that the marginal utility of X and Y are MUx and MUy respectively, describe the condition for the utility maximizing consumption bundle for a consumer assuming that the price of X is Px and the price of Y is Py.
