Ricky has utility function u=x?y. This implies that MUx=2xy. MUy=x². His income is 100. The price of y is 10. (a) Find his demand for x at price 20. (b) Find his demand for x at price 30. (c) Write down his demand function for x: that is, write down his demand for x as a function of the price of x.

Q: Consider a consumer with the utility function U(X, Y) = X2 Y2 . This consumer has an income denoted…

A: Answer: Given, U (X, Y) = X2Y2 Income (I) = 100 PX= 10 PY= 5 Let us first find the demand function…

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: Q10. Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F. In Case 1, Total income is…

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

Q: On what portion of the demand function does total revenue rise as price rises? The price of tea…

A: 1. Law of demand suggests that other things remain constant with a rise in the price of a commodity…

Q: The following utility functions are defined over three goods, x, y, and z. Calculate the demand…

A: Demand for the goods is achieved at the optimal state where the Marginal Utility per dollar for…

Q: A consumer of two goods, good 1 and 2, has a utility function U (X1, X2)= X1 0,6. X2 0,4, where x,…

A: Given information X1^0.6X2^0.4 P1=5 P2=3 M=150 Now price of X1 decreases  New P1=2

Q: Walt has utility function u = x + y. He has an income of $240. If the price of good x changes from…

A: The given utility function is of perfect substitutes and in this type of utility function consumer…

Q: Suppose the consumer has an income of $100. Her utility function is given as U(x1, x2) = X1 + 2x2.…

A: When the two goods are perfect substitutes, the consumer will spend all of its income on that good…

Q: Maxim has utility function u(x1,x2)=max{x1+x2,3*x2}. Derive her demand for good 2 when p1=1, p2=1,…

A: Given that utility function is U(X1, X2) = max{X1 +X2,3X2} P1 = 1 , P2 = 1 and m = 20 Budget…

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: 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: 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: QUESTION 3 Consider an individual who has a utility function U(X,Y) = 2x1/2)+ y(/2), the prices of…

A:

Q: The consumer's initial budget line is I with income equal to S3000. The budget line then shifts from…

A: A graphical representation in which all possible combinations of two products are purchased with…

Q: Consider a consumer who purchases two goods, x and y. The consumer’s utility function is U(x, y) =…

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

Q: A consumer has utility u(x,y) = 10vy+x.The price of x is fixed at $1 and income is $100. Find the…

A:

Q: Consider the utility function u(x1, x2) = x10.5x20.5. Find the Marginal Utilities with respect to…

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

Q: Consumer's utility function is: U(X,Y) = (X+2) (Y+3). Thus, the marginal utility of good x is MUx =…

A:

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

A: A buyer maximizes the utility from consumption by choosing the levels of x and y where the value of…

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

A: Marginal utility refers to the additional happiness a consumer gets when he/she consumes an…

Q: Suppose that consumer (has the following utility function: U(X,Y) = In(3X) + 2Y. What would be the…

A: Utility function: U = ln(3X) + 2Y ---------- Let's assume Px is the price of good X Py is the price…

Q: Suppose that Ellot has the following utility function: U(x,x)-V+0.5x, Suppose that the price of good…

A:

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: 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…

A: Consumer, consumes the good from which he get maximum $ marginal utility. If $ MUx = MU/px is more…

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

A:

Q: 0.2. (i) Check if the law of demand holds for good x, in case of the following utility function:…

A: Given information Utility function U=X1+X2 Law of demand shows that there is negative relation…

Q: (d) The preferences of a consumer with utility function U (x1, x2) = (1+x1)(1+x2) are convex. [Note:…

A: Microeconomics refers to the branch of economics in which it studies the individual, household, and…

Q: In recent years fresh bagel sales have been growing at about 30% per year. Once considered an ethnic…

A: The utility from day old bagel has very low or no preference by consumers. An IC curve represents…

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

A: U (x ,y ) = 3x + y  PX = PY = 1  Budget Constraint : px(x) + py(y) = I  Walrasian demands are simply…

Q: Suppose there are two goods, x1 and x2, with unit prices p1 and p2. Consider a consumer with vealth…

A: (a) The objective of the consumer is to maximize his utility subject to the budget constraint. The…

Q: Suppose the price of good x falls. As a result, the quantity demanded for good x increases for a…

A: Inferior goods are those goods whose demand falls when the consumer Income is rice. People are a…

Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…

A: Answer is given below

Q: Consumer 1 has the utility function xy x+y subject to PxX + pyY = m Derive the generalized demand…

A: Given utility function: U=xyx+y Budget constraint: PxX + PyY = m

Q: Suppose that consumer uses 1 units of X and 7 units of Y always in fixed proportion. Then, what…

A: There are two goods, i.e., X and Y A consumer uses 1 unit of X and 7 units of Y in a fixed…

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

A: U (x ,y ) = 3x + y  PX = PY = 1  Budget Constraint : px(x) + py(y) = I  Walrasian demands are simply…

Q: Ravi's utility function for various combinations of X and Y satisfy all the axioms of choice. Given…

A: Good Y is independent good. Independent good means if the price of good X increases or decreases,…

Q: What is the demand for goods L and Y given the utility function U(L,Y) = L+2Y where the price of L…

A: Substitute goods refers to the goods which are used for each other. The rise in the price of one…

Q: Joe has utility function is U = ln(x) + 2(ln(y)). He has 2 units of x and 8 units of y. Price of x…

A: Utility function :  U = ln(x) + 2(ln(y))  Endowment : x = 2 , y = 8  Px = 1 , Py = P Therefore ,…

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

A: U(x1,x2) = Min{x1, x2} + 1/2Max{x1,x2}

Q: Suppose a consumer's utility function is: u(x1,x2) x1 + In (x2). The price of x2 is 2 and the ngel…

A: The curve that shows the consumption pattern of a good by a consumer as his/her income changes is…

Q: Suppose that the preferences of the consumer are represented by the following functions of utility:…

A:

Q: Question 2. A consumer has the utility function U(q1,q2) = q10.5 + q2 Assume p2 = 1 and Y = 100.…

A: We are given :  Utility function : u = q10.5 + q2Budget: Y (income) = 100 P2 = 1 P10  = 1 , P11 = 4…

Q: Bob has utility function U(x,y)=x+y over goods x and y. a) If P,-$30, Py-$10, draw the income…

A: Income consumption curve shows the relationship between consumption of goods and income .  If the…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: The law of diminishing marginal / minimal utility indicates that as an individual gets even more a…

Q: Q 15. suppose the consumer's utility function is given by U(x,y) =x^1/4 y^3/4 where the equation for…

A: The  given information:The utility function can be written as follows:

Q: e. Show that the expenditure function for this case of CES utility is given by E = V(p, + p,)'"". f.…

A: g) To see the effect of change in prices on utility, we find the partial…

Q: A consumer has utility (see image) on ice creams (x) and cakes (y).   (a) Are the indifference…

A: Utility: It can be defined as the wants satisfying power of a good. In simple words, utility is the…

Q: explain the consumer equilibrium condition according to the utility theory.

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.