I like drinking Smirnoff and Stoli Vodka, but I really only care about the total amount of alcohol I get out of it. They are perfect substitutes. Smirnoff is sold in liter bottles that are 100 proof (that’s 50% alcohol). Stoli is sold in liter bottles that are 80 proof (40% alcohol). What is my utility function for bundles of these two vodkas? What do my indifference curves look like?

Q: Q10. Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F. In Case 1, Total income is…

A: We are going to use Consumser decision theory to answer the question.

Q: Question 1 Calculate the marginal rate of substitution (MRS12) for the following utility function:…

A: Answer: Given, Utility function:Uq1,q2=74q1+0.6q22 To find the MRS let us find the marginal…

Q: The elementary school has one candy machine in the cafeteria.   Candy at the vending machine costs…

A: An indifference curve, with respect to two commodities, is a graph showing those combinations of the…

Q: The table below represents how Marco feels about chocolate candy bars. a. Fill in the missing…

A: Utility means the level of satisfaction that is derived from the consumption of a good or service.

Q: Indifference curves are convex with respect to the origin. Thus they are steeper on the [Select ] v…

A: The indifference curve is the curve that exhibits equal utility to the consumer by the combination…

Q: Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, which of…

A:

Q: Steve's utility function is U= (q, +4 92, where q, = veggie burgers per week and q, = packs of…

A: Answer   The price of a pack of cigarettes is $2.80

Q: Heather and Jeremiah both enjoy sunflower butter (s) and jelly (j) sandwiches, but they have varying…

A: As per the question sunflower butter and jelly are the two complementing goods for both Heather and…

Q: Rita has a budget of £600 to spend on theatre tickets (X) and on restaurant meals (Y). Each theatre…

A: Since you have asked multiple questions, we will solve Part (c) and (d) for you.  Given,  The…

Q: Paris has a utility function over berries (denoted by B) and chocolate (denoted by C) as follows:…

A: A utility function is a method to give each potential consumption bundle a number, with the same…

Q: If the utility function of a consumer is given by U(X, Y)= VX+ 2vY. Which one of the following…

A: Indifference curve is the curve which shows the combination of two goods in which consumer gets the…

Q: Suppose Mia's utility function on lemon soda (X) and chips (Y) is given by U(X,Y) = X0.5Y0.5 She…

A: The bliss consumption bundle occurs when the marginal rate of technical substitution (that is slope…

Q: Suppose the utility function is represented by the following equation: U (X, Y) = XY + X + 2Y + 2…

A: A budget limitation refers to the different combinations of goods and services that a consumer can…

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

A: Answer: A consumer maximizes his/her utility where the following condition satisfies:…

Q: Consider a person whose tastes and preferences are represented by IC . Something changes his tastes…

A:

Q: Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B…

A: The indifference curve is a downward sloping curve which shows the negative relationship between two…

Q: Diogo has a utility function, U(q1, 92) = 91 0.8 0.2 92 where 91 is chocolate candy and q, is slices…

A: Lagrangian multiplier can be used to optimize an objective function subject to a particular…

Q: Rue's utility function is U(z, y) min{z, 3y}. Jules' utility function is U(z,y) min{z, y). (a) Which…

A: An indifference curve is a graphic presentation of integrated products that offer an identical type…

Q: Diogo has a utility function, U(a,, 92) =q, 02., 0.8 where q, is chocolate candy and q2 is slices of…

A: Optimal condition is that condition where MRS is equal to price ratio.

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

A:

Q: Find the quantities which maximize utility, if you have the utilit functions is (n=Q1Q2+Q1+2Q2)…

A: Utility is maximised at a point where slope of an indifference curve is equal to the slope of a…

Q: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: An Indifference curve plots the area of the multitude of focuses showing the heaps of two products…

Q: Sally goes to the grocery store each week looking to purchase items that will give her as much…

A:

Q: Q1) For the utility function in part a below, draw a set of indifference curves showing utility…

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

Q: if both x1 and x2 are "bads", utility will increase i) As x1 or x2 increases ii) As the marginal…

A: Dear student, as you have posted multiple questions but according to the policies and guidelines of…

Q: In recent years fresh bagel sales have been growing at about 30% per year. Once considered an ethnic…

A: The utility from day old bagel has very low or no preference by consumers. An IC curve represents…

Q: Question 8 Given the utility function U = 2x+5y, what is the equation of the indifference curve that…

A: Utility refers to the satisfaction derived from the consumption of good. The utility function shows…

Q: Suppose Mary has the utility function U(x1, x2) = v(x;) + 2x2 with v such that v' > 0 and v" < 0.…

A: Given, Utility Function, U(x1,x2) = v(x1)+ 2X2, v such that v'&gt;0 and V"&lt;0 As mentioned, x1 =…

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: Discuss five properties of indifference curves and their relevance for consumer theory

A: Indifference curves represents the utility obtained by a consumer as a combination of two goods.

Q: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: The indifference curve shows the combination of points that provides the same level of utility to…

Q: Lisa can buy either whole chickens or chicken wings at her local supermarket. Her utility function…

A: U = 2Xc + Xw Where  Xc is chicken and Xw is chicken wings --------- Xc and Xw are substitute goods.…

Q: Suppose a consumer's utility function is: u(x1,x2) x1 + In (x2). The price of x2 is 2 and the ngel…

A: The curve that shows the consumption pattern of a good by a consumer as his/her income changes is…

Q: The total utility from two products is maximized at the optimal consumption bundle.   True or…

A: The measure that depicts the total satisfaction being derived by the consumer from the consumption…

Q: Consider a consumer with the utility function U(X,Y) = In(vX + vY) and suppose that the prices of…

A: Given prices and income, the budget constraint is given by pXX+pYY=I⇒2X+4Y=120 To solve the utility…

Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

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: Either find a utility function for each of the examples or discuss what properties should it have.…

A: Economists formulate the theory of consumer behavior on consumer preferences and utility is…

Q: Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She…

A: When the price of S is greater than the price of pri9ce of N, then the person consumes only the good…

Q: For each of the following utility functions draw the indifference curve that passes through (1,1).…

A: To draw indifference curve , we just fix the utility to any arbitrary number and take some points.

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and…

A:

Q: A person with utility function Ux, y) = 5+ y+ 2x has nonconvex preferences. True False

A: Answer:- TRUE

Q: If the utility function is : u= q1q2. find the slope of an indifference curve. What will be its…

A: Slope of indifference curve = Marginal rate of substitution (MRS).

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: Suppose Mia's utility function on lemon soda (X) and chips (Y) is given by U(X,Y) = X0.5Y0.5 She…

A: The answer to your question is given under 2 sub parts a and B as below :

Q: Bob views apples and oranges as perfect substitutes in his​ consumption, and MRS​ = 1 for all…

A: The marginal rate of substitution in economics is the amount of a good that a consumer is willing to…