Suppose Mark has the following utility function: U(x, y) = 2 min{2x, 5y}. a. What is the utility of bundle (5,2)? What is the utility of bundle (5,4)? b. Draw the indifference curve that passes through the bundle (5,4).

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A: We are going to solve above question using Marginal Rate of Substitution formula.

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A: # The correct option is (B)

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A: Solution: Consumer 1: U(x1, x2) = x1 x2

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Q: t is known that the indifference curve is convex.

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Q: Utility function: where p,=1, p;=2, Y=80 U=X0.75*70.25 • Use the Langrangian method to find optimal…

A: Part A) The equation of Budget constraints: X.Px+Z.PZ=Income(M)1.X+2.Z=80 Now, combining the BL and…

Q: What information is contained in an indifference curve? Why are such curves Convex to the origin

A: Indifference curve (IC) is an important concept in consumer theory under micro economics.

Q: Suppose you have the following Utility function: U = U(x, y) = (x − γ) ^α (y − δ) ^β (a) Write…

A: U(x, y) = (x − γ)α (y − δ)β Total Differential : dU=[∂U/∂x]dx+[∂U/∂y]dy ∂U/∂x=α(x − γ)α-1(y − δ)β…

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A:

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A: Disclaimer: Since you have posted a question with multiple sub-parts, I am providing you with the…

Q: Question 8 Given the utility function U = 2x+5y, what is the equation of the indifference curve that…

A: Utility refers to the satisfaction derived from the consumption of good. The utility function shows…

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A: Since you have asked multiple questions with multiple subparts, so as per Bartleby's guideline we…

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Q: Suppose the two goods, are perfect complements at the ratio of 1 to 1. P1=10 and P2=40. I=1000. Find…

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Q: John has the utility function U(x1,x2) = min{x1 +2x2 , 2x1+x2}. He has 90Ł to spend on beef and…

A: John has Utility function; U(x1,x2)= (x1+2x2, 2x1+x2) He has 90₺ Price of beef= 10₺ per unit Price…

Q: 1. Graph a typical indifference curve for the following utility functions and determine whether they…

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Q: What information is contained in an indifference curve? Why are such curves (a) downsloping and (b)…

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A:

Q: Problem 1. For each of the following functions: 1/2 a).u (T1, 12) b).u (x1, T2) -2 (11 – 1)? – 3 (12…

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A: To draw indifference curve , we just fix the utility to any arbitrary number and take some points.

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A: Utility function : U1 = x1*x2  U2 = min {x1/5  , 2x2 + 3 } U3 = 3x1  + 4x2  Individual 1 with…

Q: Define A consumer prefers a higher indifference curve to a lower one.

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A: We will solve the first three subparts only. Please resubmit the question with any other parts you'd…

Q: If the utility function is : u= q1q2. find the slope of an indifference curve. What will be its…

A: Slope of indifference curve = Marginal rate of substitution (MRS).

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A: The optimal consumption bundle is when MRS is equal to the slope of the budget line.

Q: If the price of one of the products associated with indifference curves decreases, all else the…

A: For the aforementioned question, the correct option is C.