Pankti consumes two goods, x and y. Her utility function is given by U(x, y) = ln(xy). (a) Are Pankti’s preferences homothetic? Explain

Q: Let x be eggs and y be bagels. An individual utility function is given by U(x, y) = ½ x + 1 y. This…

A: Given utility function  U(x,y) = 12x+1y   .......... (1) Equation of budget constraint: 2x+1y = 4…

Q: Clara's utility function is U(x, y) =(x+2)(y+1). If her marginal rate of substitution is -4 and she…

A: Marginal rate of substitution is the rate at which one good is substituted for other. It is the…

Q: At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives…

A: Budget Organizations, Governments, and individuals utilize budgets to calculate revenue and…

Q: Consider an agent whose preferences over any couple (r1, r2), where ri E R+ and r2 E R4, e.g.,…

A: Answer -

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: given the utility function U=150X+40X2-X3, derive average and marginal utility functions, Find the…

A: Answer: Given, Utility function: U=150X+40X2-X3 Average utility function (AUF): To find the average…

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: Elaborate the concept of Law of Diminishing Marginal Utility

A: A consumer's increased enjoyment from having one more unit of an item or service is referred to as…

Q: If two goods are perfect complements, then which of the following is correctE Goods can be normal or…

A: Here in the question, it is asked about the perfect complement goods.

Q: Explain how revealed preferences indicate which goods or activities give aperson the most utility.

A: The Revealed preference theory was introduced by professor Paul A. Samuelson. This theory explains…

Q: Show that Cobb-Douglas preferences are homothetic preferences

A: According to the consumer’s theory, the consumer’s preference is homothetic when they can…

Q: Priya's utility function is: U(x1, x2) = max{2x1 – x2, 2x2 – x1} Are both Priya and Rahul always…

A: A utility capacity is a portrayal to characterize individual inclinations for labor and products…

Q: consider the following description of a two-goods example: Assume two consumers with utility…

A: Given, Consumer X= (6,2) Consumer Y= (2,6) prices P = (1, 1)

Q: Mary has the utility function u(x, y) = Inx + x^2. Are her preferences strongly convex?

A: u (x,y) = ln x +x2

Q: What condition should be met in order for the consumer to maximize satisfaction in the consumption…

A: Consumer Utility Maximisation - Utility maximisation is an important concept in microeconomics. It…

Q: An agent consumes quantity (x1,X2) of goods 1 and 2. Here is his utility function: U(x1, x2) = Vx1 +…

A: Utility is the satisfaction derived from a good that a consumer has purchased. A rational consumer…

Q: Suppose there are 2 individuals, A and B; 2 goods, X and Y. The utility function of A: U, = X + YA…

A: A bunch of Pareto efficient allocations in the Edgeworth box is known as a Pareto set. This begets…

Q: Donna and Jim are two consumers purchasing strawberries and chocolates. Jim’s utility function is U…

A: The utility function for Jim is given as follows: The income of Jim is given as $100. Thus; The…

Q: Consider a consumer, he has the utility function: u(x1, X2) = xỉ * Could you find a monotone…

A: A utility function represents homothetic preferences when it is homogeneous of degree n.

Q: The utility function is: I In(C2) U = In(C1) + 1+P The budget constraint is: -C2 =Y1+ T+r 1 Y2 C1 +…

A:

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

A:

Q: Consider a consumer, he has the utility function: u(x1, x2) = xỉ * X2 Could you find a monotone…

A: a) Monotonic transformation means transforming one set of numbers into another set of numbers…

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: explain the cunsumer equilibrium condition according to utility theory. include in your answer the…

A: When talking about consumer equilibrium, it can be said that it is the situation when a rational…

Q: Roisin consumes only two goods, X and Y, and her utility function is given by U = XY. Her income is…

A: Condition for equilibrium combination: Marginal Rate of Substitution = Price Ratio MRS = MUx/Muy =…

Q: Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}…

A: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}

Q: In Problem 6, Elmer's utility function is U(x, ) = min{x, y²}. If the price of x is $20, the price…

A: From the utility function, we know x and y are complements  Thus, x=y2 When y= 8 x = (8)2 = 64if 8…

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 price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: Consider an agent whose preferences over any couple (r1, 22), where r1 E R4 and r2 E R+, e.g.,…

A: Answer -

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: Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the a.…

A: A budget constraint illustrates the various combinations of two goods that a consumer can purchase…

Q: please use two graphs (defined by Slutsky and Hicks respectively) to explain how to split the price…

A: The impact of a price change causes change into two components i.e. the substitution effect and the…

Q: If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals…

A: ''Since multiple questions are asked, we are supposed to answer one question''   Marginal Utility is…

Q: Think about a utility function U(x,y) =xy, the budget constraint is px*x+py*y=m a. Please derive the…

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

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: Check if the following utility functions represent the same preferences: u = x+y, v = x3 + y3, w =…

A:

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: Consider the following utility function и(х, у) — Зх + 4у a. Is the utility function homothetic?…

A: The utility function measures the welfare or satisfaction of a client as an operate of the…

Q: Muoki says, “I’d rather see an action movie than a comedy, and I’d rather see a comedy  than a…

A: Transitivity Axiom: Suppose there is three bundles, i.e., A, B, and C If consumer prefers A over B,…

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

A:

Q: A consumer consumption bundle contains good X and Y. Suppose the price of good X goes up and a…

A: Introduction: Consumption is the usage of products and services by households in economics.…

Q: Linguini and Colette consume only éclair (x1) and profiterole (x2). Linguini has utility function UA…

A:

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 that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate…

A: Consumer’s utility function is given as U = x + 2y. Observing the utility function, one can say that…