If your utility function is U(x, y) = 2x + y, what is your optimal bundle? To ease the assume the budget is $42. y=

Q: Diogo has a utility function, 0.2 0.8 U(q,, 92) =q,"42 where q, is chocolate candy and q2 is slices…

A:

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

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: An individual has the utility function U=4X 0.5Y 0.5 and can buy good X at £ 2 a unit and good Y…

A: Answer to the question is as follows :

Q: What kind of preferences are represented by a utility function of the form u(x1, x2) = √x1 + x2?…

A: If the MRS is constant for both the goods, it implies that the consumer is ready to exchange one…

Q: For an individual the Marginal Rate of Substitution for good X and Y is constant and equal to 1 for…

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

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: Given the assumptions of the law of diminishing marginal utility (exactly the same product consumed…

A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Q: Eric likes both chocolate ice cream (x) and vanilla ice cream (y). He has the utility function U(x,…

A: We are going to use marginal rate of substitution concept to answer this question. We know, in…

Q: If BC2 is the relevant budget constraint, then the consumer will purchase bundle

A: Budget constraint represents all the combination of goods which the consumer can purchase with his…

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: Utility function: where p,=1, p;=2, Y=80 U=X0.75*70.25 • Use the Langrangian method to find optimal…

A: Part A) The equation of Budget constraints: X.Px+Z.PZ=Income(M)1.X+2.Z=80 Now, combining the BL and…

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: suppose a consumer's utility function is given by U(X,Y) = X*Y. Also the consumer has $288 to spend,…

A: Given:  U(X,Y) = XYPrice of XPx=16Price of YPy=16

Q: Assume that an individual has the following utility function: U(x, y) - 4x + 2y. F function, the MRS…

A: The utility function be U(x,y)=4x+2y

Q: Denver Bluff High School has $60,000 to spend on computers and other goods so its budget equation is…

A: The budget-constraint is a function showing possible combination of two-goods that can be purchased…

Q: Bill faces the standard linear budget constraint [ PxX + PyY = 1] and has a utility %3D function for…

A: Given  Budget constraint  PxX+PyY=I                .........(1) Utility function U(X,Y)= min(X,Y) We…

Q: A consumer has income I and faces prices p1 and p2 for goods 1 and 2. The corresponding quantities…

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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 a consumer had a utility function given by: U = XY². If the price of Good X (Px) is $6 and…

A: Suppose a consumer had a utility function given by: U = X * Y ^ 2 . If the price of Good X (Px) is…

Q: A consumer utility function is U = 1 log x1 + log x2. His budget constraint is given by 2x1 + 4x2 =…

A: The consumer is in equilibrium when he gets maximum satisfaction out of his expenditure. The…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: Jack’s preferences are represented by the utility function U = XY^2. PX = 1, PY = 1.5 and his budget…

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Q: Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium…

A: Consumer will maximize its utility at a point where the slope of a budget line is equal to the slope…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: The consumer is consuming two goods, X and Y in equilibrium. MU from X=20units MU from Y=35units…

Q: Suppose a consumer’s utility function is u = x_1^(3/2) x_2^(3/2) . She spends her budget of £27 for…

A: Income = 27  Price of x1 : p1 = 6 Price of x2 : p2 = 6  Budget Constraint without discounts : P1x1 +…

Q: If a consumer consumes two goods (q1 and q2) and demand function of q1  is U/P1, which portion of…

A: Suppose a consumer has the following budget constraint.  U = Q1 P1 + Q2 P2             ......(i) and…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…

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: 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: Troy is a utility maximizer. Describe the utility maximization condition. Using the available…

A: Laptop Cost = 750  Drones Cost = 2000  Income = 15,000

Q: Please show your answer step by step with reasons. (i) A consumer has income of £3,000. Apple juice…

A: In economics, a spending plan limitation addresses every one of the mixes of labor and products that…

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

Q: Victoria has the following utility function: U(x,y) = x½y½ and faces the budget constraint: M = Px +…

A: Given, U(x,y) = x12y12 M = 120 Px = 4 Py = 1 M = Px + Py 120 = 4x + y        ------------ equation…

Q: Consumer has the following utility function U(x,y) = x1/2y1/2 , where the price of good x is 1$ per…

A: The marginal rate of substitution refers to the rate at which a consumer can sacrifice one good to…

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: Şeyma has the following utility function: U(x,y) = x'/²y+/2 and faces the budget constraint: M = P,x…

A: Maximizing,  U(x,y)=x1/2y1/2 subject to,  M=Pxx+Pyy   Now, y=1PyM-Pxx   Using the above equation in…

Q: Suppose that a typical consumer’s utility function is characterized by the following relation…

A: According to question resource available to the consumer is 160 birr . Taking birr as the currency…

Q: Utility Maximization. Suppose that an individual has a utility function given as U =√XY where U is…

A: Given, Utility function, Marginal utility of X, Marginal utility of Y, The slope of the…

Q: Find the demanded bundle for a consumer whose utility function is. u( x y) = X3/2Y and her budget…

A: Optimal bundle is where MUx / MUy = Px / Py

Q: If the utility function (U) between food (F) and clothing (C) can be represented as U =2F + 9C, the…

A: The utility is the amount of satisfaction received by the consumers from the consumption of goods…

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: John's utility function is U(X,Y) = 5min{2x, 3Y}. If his income is 100, and the unit price of the…

A: The utility function with min shows that goods are complements which are consumed together

Q: A consumer derives utility from good A and B according to the following utility function: U(A,B) =…

A: Given :  U (A,B)= A2/5B3/5 Price of A = $20Price of B = $10M = $200

Q: Why must a budget constraint have a negative slope? Income and quantity demanded are inversely…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…