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If the preferences are concave, will the consumer ever consume both of the goods together?
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- A consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x*,y*) to consume? a. (12,12) b. (20,20) c. (22,22) d. (40,40)Suppose Kareem receives an additional $4. Should he purchase 1 additional unit of cereal or 2 additional units of Good X? Explain your answer.What condition should be met in order for the consumer to maximize satisfaction in the consumption of good X and good Y? Provide the calculation that satisfies the equilibrium condition.
- Question 9 If income decreases and prices are unchanged, the consumer’s budget constraint... Group of answer choices remains the same. shifts outward. shifts inward. rotates outward along the horizontal axis.Suppose 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* =.I am unsure the direction the utility functions would go in , with this specific scenario
- A consuMER hAS A UTILITY FUNCTION v(x, y) = MAX (2x+y) (x+3y) he consumes(1,0) in equilibrium THEN WHICH Of the fOLLOWING MUST BE TRUE? (a) Px ≤PV Px < (3/₂) Py PX ≤ (2/3) PY Px = Py (b) (C) (d)Assume that, a consumer has $1200 to spend on two goods, X and Y. If the price of a pair of good X is $20 per unit and the price of good Y is $15 each, which of the following combinations that the consumer can purchase from good X and Good Y?True/ false Describe Since a greater utility number indicates that a consumer is better off, utility numbers cannot be negative.
- Romania has preferences represented by the utility function U(x, y) 2x and 2y. She consumes 10 units of good x and 6 units of good y. If her consumption of good x is lowered to 4, how many units of y must she have in order to be exactly as well off as before? The answer is 12 not sure how to get itJoyce consumes x1 and x2 together in fixed proportions. She always consumes 1 unit of x2 for 2 units of x1. What is the utility function that describes her preference?Suppose that MUx = 10 and MUy = 20. Further suppose that the consumer’s budgetconstraint can be expressed as 20x + 10y = 400. For this consumer, the optimal amount of good x to buy would be a) 5. b) 0. c) 20. d) 40.