Given that: U(X,Y) = X1/2+Y1/2 and the demand functions are: X=0.218I Y=0.152I   When I = 50, X = 10.9 and Y = 7.6   What is the marginal utility of income?

Q: Consider a consumer with the utility function U(X, Y) = X2 Y2 . This consumer has an income denoted…

A: Answer: Given, U (X, Y) = X2Y2 Income (I) = 100 PX= 10 PY= 5 Let us first find the demand function…

Q: Suppose the utility function of a person consuming two commodities X and Y with income borr 600 is…

A: Given: Maximize U= 2XY Budget= Birr 600 PX = Birr 20 PY = Birr 40 The budget line of the person will…

Q: The following utility functions are defined over three goods, x, y, and z. Calculate the demand…

A: Demand for the goods is achieved at the optimal state where the Marginal Utility per dollar for…

Q: Find out ordinary demand functions and expenditure function.

A: Given U = x2 + y2 + 2x + 2y           Px = 1 Py =1          Income = 4

Q: Consider a utility function u(x1, x₂) = 4x₁ + 3x₂. 1. What is the optimal bundle with Px₁, P₂, and…

A: Given information: u = 4x1 + 3x2 -----> Utility function.  The utility function is linear, it…

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: What type of function is the utility function expressed as u(x,y)=30lnx + y? Also, how would you go…

A: A utility function u (x, y) speaks to a customer's inclinations. That is, a utility function gives a…

Q: Consider a consumer with the following utility function for goods X and Y: U(x,y) = 2 - 1 y А. What…

A: Marginal utility is that the added satisfaction that a consumer gets from having another unit of…

Q: Consider the problem of a consumer who must choose between two types of goods, good 1 (x₁) and good…

A: Utility function: u(x1, x2) = x1 + x2 Marginal Rate of substitution = dudx1dudx2= 12x11 Price of…

Q: Suppose that an individual consumes two goods X and Y, and his direct utility function is given by:…

A: Consumer theory studies the behavior of consumers how they spend their income based on their…

Q: For the following utility function, u(x, y) =Vxy, (a) Verify that Shephard's Lemma:…

A: We are going to use marginal rate of substitution to find marshallian demand for both goods. Income…

Q: The utility function of a consumer is given as follows. U(x, y) = x?y3. MU, = 2xy and MU, = 3x?y?.…

A: Utility function of consumer:- U(x,y) = x2y3  MUx = 2xy3 MUy=3x2y2

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: The utility function of a consumer is U = X²Y, her income is M = 100€ and the prices of the goods…

A: The Engel curve depicts how household spending on a specific commodity or service fluctuates as a…

Q: Consider a consumer who purchases two goods, x and y. The consumer’s utility function is U(x, y) =…

A: The budget constraint of the consumer shows the different combinations of two goods that an…

Q: Consider the utility function u(x1, x2) = x10.5x20.5. Find the Marginal Utilities with respect to…

A: Marginal utility means utility gained from consumption of one more unit of a good.

Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x, x2 - 2x – x3/2, when the weekly…

A: Given that x1 = 132 and x2 = 760

Q: Consider the utility function u(x, y) = x1/2y1/2. How do the marginal utilities change as x…

A: Ans. Utility function u(x, y) = x1/2y1/2Take the partial derivative of the utility function w.r.t.…

Q: The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(7.9)y^(9).…

A: U(x,y) = x7.9y9  Price of x (Px) = 19 Price of y (Py) = 80 Total Income (M) = 10800

Q: Suppose that consumer (has the following utility function: U(X,Y) = In(3X) + 2Y. What would be the…

A: Utility function: U = ln(3X) + 2Y ---------- Let's assume Px is the price of good X Py is the price…

Q: Suppose that Ellot has the following utility function: U(x,x)-V+0.5x, Suppose that the price of good…

A:

Q: ralph has a utility function u(x,y) = 0.5x + y and an income of $M. Let the price of x be $4 and the…

A: Consumer, consumes the good from which he get maximum $ marginal utility. If $ MUx = MU/px is more…

Q: Suppose you have following utility function :U(x,y)=(x“ + yª )a where x > 0, y > 0 anda ± 0,a 0 and…

A: We will use utility maximization method to answer this question

Q: The utility function of a consumer is u = √x + 2y. (a) Look for the demand function of goods x and…

A: u=x+2y

Q: Jess has the utility function U(x₁, x₂) = min{3x1, 6x2}. The price of x₁ is px₁, Px₂, and his income…

A: This is a case of complementary function where both goods are consumed in the fixed proportion.

Q: Consider the utility function u(x) =√x1+ √x2 ; and a standard budget constraint: p1x1+p2x2=I. a.Are…

A: We are going to calculate Hessian matrix, Marginal rate of substitution to answer this question.

Q: please help

A: Use equilibrium condition to solve for x and y in terms of prices Px and Py.

Q: Given the utility function Log Y = 0.42logX1 + 0.58logX2 Find the demand function

A: Given  Utility function logY=0.42logX1+0.58logX2         .... (1) Let the price of good 1 and good 2…

Q: The demand function for a particular good is x = a + bp. What are the associated direct and indirect…

A: To know how much a consumer can obtain at the most, with the given alternatives, the utility of…

Q: 1. Find the MRS (marginal rate of substitution) for the following Utility functions: 1. U(x, y)= 2.…

A: INTRODUCTION: The marginal rate of substitution (MRS) is the quantity of one good that a consumer…

Q: Consumer 1 has the utility function xy x+y subject to PxX + pyY = m Derive the generalized demand…

A: Given utility function: U=xyx+y Budget constraint: PxX + PyY = m

Q: Kwabena's utility function is U(q,,92) =min (q1,92). The price of each good is $1, and his monthly…

A: Equivalent Variations refers to the amount of money to take from the consumer that would lower her…

Q: Suppose Melina's utility for goods X and Y is represented by the following utility function: U(X,Y)…

A: Suppose Melina's utility for good X and good Y .

Q: An individual has an income of 240 and finds his satisfaction by consuming goods x1 for 2$ and x2…

A: Utility refers to the satisfaction. The aim of consumer is to maximize the utility. Given the…

Q: Consider an individual with the following utility function, U(x, x) = ax?x5. The current price of x,…

A: Utility Maximization is the condition where consumer spent the income in such a way that maximise…

Q: Find marginal utility MU for a consumer consuming x amount of a given commodity, where his total…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

Q: Consider a consumer with the utility function U (x1, x2 ) = 10x12/3x21/3 −50. Suppose the prices of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Consider the utility function: u(x1, X2) = Axfx}-a where 0 0. (a) Compute the Marshallian demand…

A: The utility function is used to represent the individual preferences and the utility function is…

Q: Suppose a consumer purchases food X and clothing Y. The utility function of the consumer is given…

A: Consumer purchases food X and clothing Y Utility function of consumer; U(X,Y)=XY+5Y Income of…

Q: Assume that a person’s utility depends on two products, x and y. The utility function is given by…

A: Marginal utility of x and y can be calculated from the above utility function just by differentiated…

Q: Jane's utility function is U=X^2Y^8 , with marginal utilities being  MUX=2XY^8 and MUY=8X^2Y^7.…

A: Answer: Given, Utility function: U=X2Y8MUX=2XY8MUY=8X2Y7PX=1PY=3I=120 The budget constraint of this…

Q: Optimal choice, example #4 Bob has utility function U(x,y)=x²+y over goods x and y. a) If Px=$30,…

A: * ANSWER :-    The Income consumption curve shows the relationship between consumption of goods and…

Q: Suppose that consumer has the following utility function: U(X,Y)= XY and Px = 1, Py = 4 and 1= 720.…

A: Income effect says that as price of the good increases, consumption of both goods decreases as real…

Q: A consumer with a fixed income will maximize utility when each good is purchased in amounts such…

A: ANSWER STEP-1 Ans:- C marginal utility per dollar spent is the same for all goods.

Q: Consider a consumer whose preferences are given by the utility function U (x, y) = (x + 1)² (y +…

A:

Q: Suppose that consumer has the following utility function: U(X, Y) = X/2y/+. What would be the demand…

A:

Q: For the utility function,  U = 2x1/2 + y  What are the income and substitution effect of price…

A: We are going to use Slutsky equation to identify and calculate income effect and substitution effect…

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.