Consider the following utility function: U=100X^0.75 Y^0.10. A consumer faces prices of Px = $5 and Py =$10. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 12 units of good X and 15 units of good Y. Then the marginal rate of substitution LOADING... is equal to: MRS=

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

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A: At optimal condition MRS = Price ratio.

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A: The given infomation:The utility function can be written as follows:

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Q: Adrienne consumes three goods, x,y, and z. Her consumption preference is given by the utility…

A: U(x,y,z) = x17y27z47Px = 1Py = 10Pz = 10

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Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to…

A:

Q: 1. Mansour consumes only peanut butter (X) and jelly (Y) and has the following utility function: U =…

A:

Q: a. Is the “more is better” assumption satisfied for both goods? Explain. b. What type of function is…

A: Utility Function id given as U(x,y) = 0.5x0.4y0.6

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A:

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A: Introduction- Utility is determined by a consumer, on the basis of happiness or satisfaction that he…

Q: Consider an economy with two goods t = 1, 2. Whenever an individual consumes xị units of good 1 and…

A: Marginal rate of substitution between good 1 and 2 can be defined as MRS =dUdX1dYdX2 = 1X1δX2 =…

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A:

Q: Q.7 A consumer's utility function is given by the expression: i = (0.6À"s + 0.4y"s). • Determine the…

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

A:

Q: Consider the following utility function: U= 100x0.50y0.50 A consumer faces prices of P, = $2 and P,…

A: The provided utility function is: U=100X0.50Y0.50

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A: U (x1 , x2 ) = α ln(x1) + (1 − α) ln(x2) α=0.25 U (x1 , x2 ) = 0.25 ln(x1) + 0.75 ln(x2)

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.