Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always give her the same utility level as one Hamburger. (a) Express Kate's preference with a utility function. (b) Find Kate's optimal consumption bundle.

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: An individual preference scale for two goods x and y is defined by the marginal rate of substitution…

A: Utility functions define the level of satisfaction or welfare of consumer with the given level of…

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: Suppose that the following a quasi-linear utility function is given U(X,Y) = U(X,)=-x-²-y-,Find…

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

Q: Assume that Rossi consumes only bananas and avocado. Fortunately, she likes both goods. The…

A: At optimal condition MRS = Price ratio.

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: Which of the following utility functions represent preferences which do not satisfy monotonicity? U=…

A: Monotonic preferences refer to such consumer preferences towards the greater consumption of goods…

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: 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: Given the assumptions of the law of diminishing marginal utility (exactly the same product consumed…

A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an…

Q: Assume a consumer with the utility function U(X,Y)=X²Y² and the typical budget constraint M= PxX+…

A: Given Consumer's utility function: U(X,Y)=X²Y² Consumer's budget line: M= PxX+ PyY

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: 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: Let the utility function of a consumer is given by the following function U = (x + 1)(y + 1) a. Find…

A: Given utility function  U=x+1y+1             ............ (1)

Q: A utility maximizing consumer purchases two commodities, Q1 & Q2. The consumer’s utility function is…

A: The Lagrange multiplier is a method of mathematical optimization that is used to find the local…

Q: Total utility is maximized when marginal utility becomes (positive, zero, negative)

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: A consumer has income I and faces prices p1 and p2 for goods 1 and 2. The corresponding quantities…

A:

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: The marginal rate of substitution is the maximum number of units of good Y that the consumer would…

A: Option -: All of the above is correct The marginal rate of substitution is defined as the…

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: 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: An individual utility function is given by U(x,y) = x·y. This individual demand (optimal purchase)…

A: Given  Individual utility function: U(x,y) = xy  ......... (1)  Let px and py be the price of good x…

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: There are two goods, apples and bananas. The price of apples is PA = $2,and the price of bananas is…

A: Answer to the question is as follows:

Q: If a consumer consumes two goods (q1 and q2) and demand function of q1  is U/P1, which portion of…

A: Suppose a consumer has the following budget constraint.  U = Q1 P1 + Q2 P2             ......(i) and…

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: Victoria has the following utility function: U(x,y) = x½y½ and faces the budget constraint: M = Px +…

A: Given, U(x,y) = x12y12 M = 120 Px = 4 Py = 1 M = Px + Py 120 = 4x + y        ------------ equation…

Q: Assuming, there are two goods: coffee and tea. Your budget is 18000 KRW per day. The price of coffee…

A:

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: The total utility from two products is maximized at the optimal consumption bundle.   True or…

A: The measure that depicts the total satisfaction being derived by the consumer from the consumption…

Q: Şeyma has the following utility function: U(x,y) = x'/²y+/2 and faces the budget constraint: M = P,x…

A: Maximizing,  U(x,y)=x1/2y1/2 subject to,  M=Pxx+Pyy   Now, y=1PyM-Pxx   Using the above equation in…

Q: T/F Explain If preference is strongly convex, the utility function will exhibit dimin- ishing…

A: The satisfaction or benefit acquired from consuming a product is referred to as utility;…

Q: Suppose that a typical consumer’s utility function is characterized by the following relation…

A: According to question resource available to the consumer is 160 birr . Taking birr as the currency…

Q: The utility function for an individual is given as u (x; y)= xy. Suppose that his income is S 100…

A: This individual's budget constraint: The utility function for an individual is given as u(x:y)= xy…

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

A:

Q: If the utility function (U) between food (F) and clothing (C) can be represented as U =2F + 9C, the…

A: The utility is the amount of satisfaction received by the consumers from the consumption of goods…

Q: Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and…

A:

Q: The utility function of a consumer is u = √x + 2y. (a) Calculate how much MRS of that consumer when…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of a good…

Q: Jane's utility function is U=X^2Y^8 , with marginal utilities being  MUX=2XY^8 and MUY=8X^2Y^7.…

A: Answer: Given, Utility function: U=X2Y8MUX=2XY8MUY=8X2Y7PX=1PY=3I=120 The budget constraint of this…

Q: Suppose the function for the utility from good c is denoted as U(c)=2c2. Which of the following…

A: The total utility is defined as the total satisfaction a consumer is able to get by consuming a…

Q: find i

A: An indifference curve is a graph which shows combination of two goods which give the consumer equal…

Q: Suppose the function for the utility from good c is denoted as U(c)=2c1/2 .  Which of the following…

A: Given  Utility function:  U(c) = 2c1/2.    ..... (1) Where have to find marginal utility from good c