(ii) Find the ratio of the marginal utilities for two goods x and y, when the utility function is U= p log (X + a) + q log (Y+b)

Q: Suppose a consumer’s utility function u is given by u(x) = x1 x22 where x1 and x2 are amounts of two…

A: Utility refers to the amount of satisfaction that is received by an individual from consuming a good…

Q: Jack and Jill live in the same village where they both face the same price. Jack has preferences…

A:

Q: An individual preference scale for two goods x and y is defined by the marginal rate of substitution…

A: Utility functions define the level of satisfaction or welfare of consumer with the given level of…

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

A: Microeconomics studies the economy at an individual level. It studies consumers and assumes that…

Q: In many cases, it is reasonable to refer to the ________________ as the price   Group of answer…

A: Budget constraint: It represents the different combinations of goods that can be purchased within a…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: Consider the utility function: U(x,y)= -4(3x-12)² - (2y-10)² Determine the marginal utility for…

A: The marginal utility can be defined as the extra utility received from the consumption of one more…

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

A: Given values in the question are following -:…

Q: Many apartment-complex owners are installing water meters for each apartment and billing the…

A: Answer - Marginal Utility :- It is utility which a consumer will get by consuming one extra unit of…

Q: If the Utility function of an individual takes the form u(x, y) = (x + 2)² (y + 3)³ where U is total…

A: As given U(X,Y) = (x+2)2(y+3)3 MUx =∂U∂x

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: As an individual consumes more and more of a good, each additional unit brings about less and less…

A: Marginal Utility refers to the additional satisfaction derived from consumption of an additional…

Q: If the marginal utility function of an individual takes the form U = U (x1, x2) = (x1 + 2)2 (x2 +…

A: Given, the utility function: U=U(X1, X2)=(X1+2)2(X2+3)3 i) Marginal Utilities: MUX1…

Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…

A: Utility refers to the level of satisfaction that a consumer receives by consuming a good. A rational…

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: Describe how rational consumers maximize utility by comparing the marginal utility-to-price ratios…

A: Utility is defining as the level of satisfaction receives while consuming the goods and marginal…

Q: commodity. In other words, It is the utility derived from each additional unit. Marginal Utility…

A: Option A Marginal Utility It is the change in total utility which is attained when an additional…

Q: Suppose that the utility function for two commodities is: U(q1, q2) = q1α q2(1-α) Let the prices…

A: A consumer consumes a good as it gives it is a utility. The utility is the want satisfying power of…

Q: If the utility function for a consumer is defined by U=f(X,Y)=3√(X^2Y), Given that the consumer's…

A: In order to find the utility maximizing combinations of X and Y we equate the MRS to price ratio of…

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: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

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

Q: consumers pay

A: Marginal rate of substitution: It refers to the buying capacity or willingness of the buyer to buy…

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

A: utility function U=A2*B2 where A = Apples and B = Banana Income = $20 Cost of apple = 1 cost of…

Q: suppose the price per gallon of water is 1 cent and the price per carat of diamond is $10,000. Is…

A: The ability or capacity of a commodity to satisfy consumers’ wants is known as a utility.

Q: The prices are (p1,p2)=(2,3), and the consumer is currently consuming (x1,x2)=(4,4). There is a…

A:

Q: Define marginal utility and Provide an argument why to maximize total utility of good x and good y,…

A: The want satisfying power of a good is termed as the utility. The summation of utility derived from…

Q: Coke and Pepsi are perfect substitutes. Initially the price of Coke is higher than the price of…

A: The perfect substitutes are the goods which cannot be used simultaneously and can only be used in…

Q: Assume the marginal utilities for the first 3 units of a good consumed are 200, 150, and 100,…

A: In Economics, Utility refers to the total satisfaction received from consuming a goods or service.

Q: At the local ski resort, the rates for a day on the slopes are as follows:   4-hour pass =$23…

A: Marginal utility is the additional benefit derived from consuming an additional unit of a good. The…

Q: Jane’s utility function on bundles of two commodities (x,y) is given by: U(x,y)=4x2y3. What is the…

A: To calculate the value of Marginal Rate of Substitution.

Q: It is known that the indifference curve is convex. What does this tell you about the relationship…

A: Hello, thank you for the question. Since there are multiple questions posted here, only the first…

Q: Suppose marginal utility of good X is 20 while its price is Rs. 4 per unit and marginal utility of Y…

A: (Q) Suppose the marginal utility of good X is 20 while its price is Rs. 4 per unit and the marginal…

Q: The concept of diminishing marginal utility with the help of necessary tables and graphs taking a…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Martha spends 5 hours of free time exercising and playing music per day. The table below represents…

A: Theory of diminishing marginal utility states that, with other things being equal, there would be a…

Q: Given the utility function, where U is the total utility and x and y are the commodities consumed,…

A: U(x,y) = (5x+3)2(4y+2)3

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: U = U ( x 1, x2)  = (x1 + 2) 2 (x2 + 3) 3

A: The Marginal utility is a satisfaction which consumer derive by consuming one more unit of…

Q: Utility Maximization A consumer faces income constraints and has CES preferences of the following…

A:

Q: As a person receives more of a good, the _______________ from each additional unit of the good…

A: Wants satisfying power of commodity called utility , here we choose the correct option and explain…

Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…

A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…

Q: Mrs. Simpson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents,…

A: Utility of a consumer is maximized when the consumer allocates the budget in such a that the last…

Q: Suppose that Jack has the utility function u (x, y) = Vx + y. The price per unit %3D of x is $1 and…

A: i. u(x,y)=x+y          x+4y=100 α=max u(x,y) st x+4y=100α=x+y+λ(100-x-4y)dαdx=12x-λ=012x=λ…

Q: Suppose the function for the utility from good c is denoted as U(c)=2c1/2 .  Which of the following…

A: Given  Utility function:  U(c) = 2c1/2.    ..... (1) Where have to find marginal utility from good c

Q: From the consumer’s viewpoint, which of the following is to get the most total satisfaction or value…

A: Customer satisfaction: The degree to which customers are satisfied with items is known as customer…