PROBLEM (2) A consumer has preferences over bundles of apples (x) and oranges (y) represented by the utility function U(x, y) = Vx – 1/y (a) Does she always prefer more oranges to less? (b) Does she exhibit diminishing marginal utility for apples? (c) Does she exhibit diminishing MRS (of apples for oranges)?
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- Choose the best answer using the utility chart below.  What is the total utility for five snow cones? A. 50 B. 60 C. 45 D. 75What kind of preferences are represented by a utility function of theform u(x1, x2) = √x1 + x2? What about the utility function v(x1, x2) =13x1 + 13x2?Psy QUESTION: Use the sheet 1( picture below) utility function and parameter values to find the optimal solution via analytical methods (calculus/lagrangean/algebra). Show your work. Note that x1<a/b, so we will use the first utility function given in the yellow box in the sheet.
- ayesha derives utility from travelling and outdoor dinning o weekends as given utility function U(t,d)=TD.the price of a day spent travelling is $160{Pt=160} and price of dining outdoor $200{Pd=200}.ayesha annual budget for this is $8000. find ayesha's utility maximizing choice of days travelling and dining outside. and alsoo find uutility level from consuming that bundles .show findings graphicallyV1 Question I Maximize the following utility function: U=4x 2 +3xy 2 +y 2 ; subject to the condition that x+y=60True/ false Describe Since a greater utility number indicates that a consumer is better off, utility numbers cannot be negative.
- (a) A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good she prefers more to less, with diminishing MRS) chooses optimally to consume 12 units of X. If the prices change and now pX = 6 and pY = 4, what is the possible range for her new optimal X consumption? (b) Forget about (a). A consumer with I=$240 budget is shopping for apples (x) and oranges (y). Apples cost $1 each up until 60 units; thereafter each apple costs $2. Similarly, oranges cost $1 each up until 60 units, and thereafter $2 each. Draw the graph of feasible set of bundles for the consumer with relevant points and numbers (shade the feasible area), no explanation needed. (c)(HARD!) In (b), calculate the optimal bundle assuming the consumer’s utility function is u(x,y) = x5y.8) When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the aboveTrue or False explain 2. A consumer’s budget line is kinked towards the origin (i.e., the kink is pointing towards the origin) if this consumer faces a lower price per unit of x as more x is consumed.
- When utility function U(q1, q2)=min{ 25.6 q1, 12.5 q2} and q1= 99 and q2= 198 are given, find utility level consumer gains?Table 6.4 Chocolate Bars Total Utility 1 10 2 25 3 4 60 5 70 Refer to Table 6.4, which shows a utility schedule for a consumer’s consumption of chocolate bars. The marginal utility of the first chocolate bar is _____ units. Group of answer choices 70 10 2 15 45Table 6.4 Chocolate Bars Total Utility 1 10 2 25 3 4 60 5 70 Refer to Table 6.4, which shows a utility schedule for a consumer’s consumption of chocolate bars. The total utility derived from the consumption of one chocolate bar is _____ units. Group of answer choices 70 10 2 45 15
