ralph has a utility function u(x,y) = 0.5x + y and an income of $M. Let the price of x be $4 and the price of y be $10. In this case, the consumer's optimal demand for good x* = M/16 2M M/4

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

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A: We are going to use Consumser decision theory to answer the question.

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A: Given U = x2 + y2 + 2x + 2y           Px = 1 Py =1          Income = 4

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A: Given information Two goods X and Y For first 30 units of X pay full price After that for next 20…

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A:

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A:

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A: Answer: Utility represents the satisfaction that consumer receives after consuming a commodity.

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A: Marginal utility means utility gained from consumption of one more unit of a good.

Q: Suppose that Sam has a utility function u(x, y)= xy2 where x is the amount of good 1 and y is the…

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

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A:

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A:

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A: Here,

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A: This is a case of complementary function where both goods are consumed in the fixed proportion.

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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…

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Q: Let U(x, y) = 3x + y be the utility function of a consumer, who has a budget of I. As a function of…

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Q: Consider the following utility function U(x1, x2) = Min{x1, x2} + 1/2Max{x1, x2} Calculate the…

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Q: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

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Q: TRUE OR FALSE? Maximilian consumes two goods, x and y. His utility function is U(x, y) = max{x, y}.…

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Q: derive and draw the Engel curve, x1(m) and the demand curve, x1(p1):    U(x1, x2)=x11/3 x22/3   .

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Q: A consumer with a fixed income will maximize utility when each good is purchased in amounts such…

A: ANSWER STEP-1 Ans:- C marginal utility per dollar spent is the same for all goods.

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