Consider the following utility function: ху U(x,y): х — у (a) Derive the MRS of x to y. Show your work. (b) Is this function quasi-concave? [Hint. You need to check the conditions for quasi-concavity].

Q: Consider the following utility function: U=100X^0.75 Y^0.10. A consumer faces prices of Px = $5 and…

A: Given, U=100x0.85y0.10

Q: Suppose a consumer’s preferences over two goods x1 and x2 are given by u = root(x_1 x_2). Her…

A: Answer: Given, Utility function: u=x1x2 Price of good 1 = p1 Price of good 2 = p2 Income = M The…

Q: An individual preference scale for two goods x and y is defined by the marginal rate of substitution…

A: Utility functions define the level of satisfaction or welfare of consumer with the given level of…

Q: Suppose that the following a quasi-linear utility function is given U(X,Y) = U(X,)=-x-²-y-,Find…

A: We are going to solve above question using Marginal Rate of Substitution formula.

Q: Walt has utility function u = x + y. He has an income of $240. If the price of good x changes from…

A: The given utility function is of perfect substitutes and in this type of utility function consumer…

Q: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…

A: Given  Pizza (P) and Hamburgers (H) are perfect substitute  and utility from 2 slices of Pizza =…

Q: The marginal rate of substitution (MRS) is not dependent on the transformation of a particular…

A: Answer: True, Explanation: A monotonic transformation of a particular utility function does not…

Q: Which of the following utility functions represent preferences which do not satisfy monotonicity? U=…

A: Monotonic preferences refer to such consumer preferences towards the greater consumption of goods…

Q: The following statement is true for consumer preferences: a) The axiom of weak monotonicity implies…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: indifference curve at utility level equal to 20 is?

A: Utility means the satisfaction that a consumer gains from consuming a product or service. Utility…

Q: For the utility u(x1, 2) = xf + x verify the Slutsky equation

A: Utility function : U(x1 , x2 ) = x11/3 + x21/3 Let the prices be p1 & p2  Income be (m)  Budget…

Q: Calculate the MRS for the following utility function U (x1, X2) = 2x + x; + e³x1 (in text mode, the…

A: Utility function : U(x1 , x2 ) = 2x12 + x22 + e3x1 Marginal Rate of substitution refers to the rate…

Q: Suppose that the consumer has a utility function u(a, b) = min (2a, b). The price of both goods is…

A: Recall that the utility function of the form u(a, b) = min(2a, b) represents goods which are perfect…

Q: Assume a consumer with the utility function U(X,Y)=X²Y² and the typical budget constraint M= PxX+…

A: Given Consumer's utility function: U(X,Y)=X²Y² Consumer's budget line: M= PxX+ PyY

Q: For the utility function U(X,Y)= 6X0.50.5, the marginal rate of substitution MRSxy is: O Y/X. O X/Y.…

A: Given:- Utility function, U(X,Y)=6X0.5Y0.5 To calculate:- MRSxy=?

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: Mary has the utility function u(x, y) = Inx + x^2. Are her preferences strongly convex?

A: u (x,y) = ln x +x2

Q: Using a graph, draw a set of indifference curves that are not locally non- satiated. Explain in…

A: An indifference curve refers to a graphical depiction of a combined product that offers a buyer a…

Q: Consider the indifference curve map and budget constraint for two goods, X and Y. Suppose the good…

A: Normal goods are those goods whose quantity demanded increases, when the income of the consumer…

Q: Consider a consumer, he has the utility function: u(x1, X2) = xỉ * Could you find a monotone…

A: A utility function represents homothetic preferences when it is homogeneous of degree n.

Q: The marginal rate of substitution is the maximum number of units of good Y that the consumer would…

A: Option -: All of the above is correct The marginal rate of substitution is defined as the…

Q: Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces…

A:

Q: Calculate the marginal rate of substitution (MRS12) for the following utility function: U(q1, 92) =…

A: "Marginal rate of substitution indicates the rate at which a consumer can give up some units of a…

Q: When utility function  U(q1, q2)=min{ 34.6 q1,  17 q2} and  q1= 33 and q2= 60 are given, find…

A: A utility function represents the preferences of a consumer if the consumer has a preference…

Q: A sports bar charges $5 per drink (good X) and $10 per plate of appetizers (good Y). Victor, a…

A:

Q: Suppose Jane is always willing to give up one apple for one orange. Then, the MRS for apples to…

A: In economics, an individual has the face the trade-off between the alternatives to make different…

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: Jane’s utility function on bundles of two commodities (x,y) is given by: U(x,y)=4x2y3. What is the…

A: To calculate the value of Marginal Rate of Substitution.

Q: Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}…

A: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}

Q: he marginal rate of technical substitution Group of answer choices is the rate at which one input…

A: The marginal rate of technical substitution (MRTS):   MRTS is the rate at which the firm can trade…

Q: In Problem 6, Elmer's utility function is U(x, ) = min{x, y²}. If the price of x is $20, the price…

A: From the utility function, we know x and y are complements  Thus, x=y2 When y= 8 x = (8)2 = 64if 8…

Q: An individual utility function is given by U(x,y) = x·y. This individual demand (optimal purchase)…

A: Given  Individual utility function: U(x,y) = xy  ......... (1)  Let px and py be the price of good x…

Q: The following statement is true for consumer preferences. a) /The axiom of weak monotonicity…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: Bridget's preferences for apples( X) and bananas(Y) can be represented by the utility function…

A: Utility refers to the satisfaction obtained by the consumers from a good or service. While ,…

Q: What is the marginal rate of substitution (MRS) for the utility function U(x, y) = x° + y®? The…

A: Given: The utility function is: Ux, y = xp + yp To Find: The marginal rate of substitution of Good x…

Q: Consider the following utility function U(x1, x2) = Min{x1, x2} + 1/2Max{x1, x2} Calculate the…

A: U(x1,x2) = Min{x1, x2} + 1/2Max{x1,x2}

Q: A consumer has GH¢600 to spend on two commodities, A and B. Commodity A costs GH¢20 per unit and…

A:

Q: Suppose an individual had a utility function given by: U = X0.6 y 0.8. Calculate this individual's…

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

Q: Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on pudding…

A: Marginal rate of substitution can be explained as the rate at which a consumer is willing to give up…

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: x0.25 y0.75 and has an income of As in question 2a, A consumer has a utility function given by U…

A: U = x0.25y0.75 MRS = MUxMUy = 0.25x-0.75y0.750.75x0.25y-0.25 = 1y3x Before Price change: MRS =…

Q: Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P,…

A:

Q: Suppose the function for the utility from good c is denoted as U(c)=2c2. Which of the following…

A: The total utility is defined as the total satisfaction a consumer is able to get by consuming a…

Q: marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount of one…

A: Marginal rate of substitution depicts the relative price of two goods.

Q: Consider the following utility function: U= 4X+Y. A consumer faces prices of P,= $2 and P, =1. %3D…

A: Answer: Given, Utility function: U=4X+Y The formula of the marginal rate of substitution (MRS) is…

Q: Consider the following utility function: U= 100x 50,0.50 %3D A consumer faces prices of P, = $2 and…

A: U=100X^0.5Y^0.5 Px=$2 Py=$1 MRS=1.83 MRS is the ratio of marginal utilities of the two goods In a…