Consider an individual with preferences over two goods. This consumer is maximising utility when: a.They receive the same utility from each good. b.They spend the same amount of money on each good. c.The MRS is greater than the ratio of the prices of the two goods. d.None of the above.
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- Price for X is $1 and Y is $2. Budget is $9. Good X Good Y Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1 When the consumer purchases the utility-maximizing combination of goods X and Y, total utility will be what?A consumer is spending all of her income and receiving 100 utils from the last unit of good A and 80 utils from the last unit of good B. If the price of good A is $2 and the price of good B is $1, to maximize total utility the consumer should buy: Select one: a. Less of both goods. b. More of good B. c. More of good A. d. Less of good B. e. More of both goods.Price for X is $1 and Y is $2. Budget is $9. Good X Good Y Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1 To maximize utility, the consumer will buy how much of good X and how much of good Y?
- 1) Consider an individual with preferences over two goods. This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above.What's the meaning of a combination of goods which are lying outside the budget line? A. the given combination of goods can provide higher utility compared to the combination of goods below the budget line B. the given combination of goods is affordable C. the given combination of goods is not affordable D. A and B are correct E. A and C are correctSuppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y). Also, suppose the consumer has $300 to spend and the price of Good X is PX = $2 and the price of Good Y is PY = $5. If the consumer maximizes their utility subject to their budget constraint, how much of Good X and how much of Good Y will the consumer purchase? X* = Y* =.
- What combination of goods will this rational consumer purchase? Good X:_____ units Good Y: _____ units b. Suppose that the budgented amount falls to $5. This consumer would buy: ____ units of Good X and ____ units of good Y.Govind's income is 5000 rupees and he is trying to maximize his utility from consuming Apple and Orange and the price of apple and orange is 5 and 6 respectively in the market. a) Draw an indifference curve by using different combinations of these products and find consumer equilibrium? b) What is Govind's demand for Apple and Orange use Mashallian approach to find? c) If Govind wants to buy one more Apple over Orange, how much Orange he will sacrifice for Apple?A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y.a. The budget set is illustrated below. What are the values of A and B? The horizontal axis is labeled Good X. The vertical axis is labeled Good Y. A line begins at a point on the vertical axis goes down to the right and ends at a point on the horizontal axis. A = B = b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? multiple choice Yes, it rotates clockwise Yes, it shifts out from the origin Yes, it shifts in toward the origin No, it does not change c. Given the equation for the budget set, what are the prices of the two goods?Good X: $ Good Y: $ What is the consumer’s income? $
- Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices of both goods are positive. He will Question options: never buy more x than y. buy equal amounts of the two goods. always buy more y than x. always buy more x than y. More than one of the above is true. What is the correct answer to this and why?The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is 20 then the marginal utility of good "b" must be ________ to have an optimum combination of goods purchased. 80 20 60 4gd A and good b: perfect compliment i buy $80 on good a and b monthly the pricing of the 2 gds are Price a = price b = $10 How will my indifference curve look like in a graph? And why does it look like it? And how do I add a budget line to it? how do I add the optimal bundle if I need to find the amount of good a and b I choose to buy?
