Suppose that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate the agent’s optimal consumption of x? price of y only price of x only income only price of x, price of y, and income price of x and y only

Q: Suppose a consumer’s preferences over two goods x1 and x2 are given by u = root(x_1 x_2). Her…

A: Answer: Given, Utility function: u=x1x2 Price of good 1 = p1 Price of good 2 = p2 Income = M The…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Indifference map of a customer is given by formula Q1 = (3Q2 - c)2, and budget line by formula Q1 =…

A: Q1 and Q2 are the two goods in this, and c is the utility. Therefore, making c the subject in our…

Q: Consider an agent whose preferences over any couple (r1, r2), where ri E R+ and r2 E R4, e.g.,…

A: Answer -

Q: Suppose that a consumer has the utility function u(x1,x2) : quantity of good i consumed, i = 1, 2.…

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Q: When utility function  U(q1, q2)=min{ 25.6 q1,  12.5 q2} and  q1= 99 and q2= 198 are given, find…

A: The Utility function can be represented by   U(q1, q2)=min{ 25.6 q1,  12.5 q2} In general, if…

Q: Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is…

A: Given values in the question are following -:…

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: What kind of preferences are represented by a utility function of the form u(x1, x2) = √x1 + x2?…

A: If the MRS is constant for both the goods, it implies that the consumer is ready to exchange one…

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: 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: Consider the Cobb-Douglas utility function of a consumer is given as u (z y) := 1"y where a > b and…

A: Given; Utility function; u(x,y)=xaybwhere;a>b and  the sum (a, b) and the product (a,b) are 1 and…

Q: Assume that an individual has the following utility function: U(x, y) - 4x + 2y. F function, the MRS…

A: The utility function be U(x,y)=4x+2y

Q: Consider the utility function U(x,y)=3x +6y. An agent with a budget constraint of 15x + 5y = 30 will…

A: Budget line: A budget line is a line that expresses all bundles which a consumer can purchase with…

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: Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3…

A: The utility in terms of economics can be defined as the amount of satisfaction or happiness that a…

Q: A consumer is faced with the following utility function, U(x1 x2)=(xp1 1+xp2)1/p, where 0<p<1. The…

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

A: Utility is the satisfaction derived from a good that a consumer has purchased. A rational consumer…

Q: or the utility function (x^3)(z^2)Provide a positive linear transformation of the utility function,…

A: We are going to use log method to answer this question.

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: Which of the following utility functions represent preferences that always result in an interior…

A: Interior solution occurs when the optimal combination of goods and services have positive quantities…

Q: Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and…

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Q: Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium…

A: Consumer will maximize its utility at a point where the slope of a budget line is equal to the slope…

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: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: Consider an agent whose preferences over any couple (r1, 22), where r1 E R4 and r2 E R+, e.g.,…

A: Answer -

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: 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: Troy is a utility maximizer. Describe the utility maximization condition. Using the available…

A: Laptop Cost = 750  Drones Cost = 2000  Income = 15,000

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

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…

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Q: Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set…

A: Indifference curve show the relationship between consumption of two goods and service , consume by…

Q: Utility Maximization A consumer faces income constraints and has CES preferences of the following…

A: An individual always consumes in such a way so that his total utility can be maximized but a…

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: A convex indifference curve implies what type of behavior? diminishing marginal utility…

A: Indifference curve are defined as the locus of the points with same utility level at each point.

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

A: Please find the attached answer os all three questions below-

Q: Assume that a person’s utility depends on two products, x and y. The utility function is given by…

A: Marginal utility of x and y can be calculated from the above utility function just by differentiated…

Q: (b) Derive the household’s compensated demand function for goods 1 and 2, i.e., obtain functions of…

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Q: Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will…

A: Here, it is given thatUtility function, U(x, y) = 5x + 2y  where x and y depicts that they are…

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: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

Q: Optimal choice, example #4 Bob has utility function U(x,y)=x²+y over goods x and y. a) If Px=$30,…

A: * ANSWER :-    The Income consumption curve shows the relationship between consumption of goods and…

Q: A household with strictly convex preferences may consume only one of two goods.

A: Strict convexity of preferences may be a stronger property than simply plain convexity. Preferences…

Q: find i

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

Q: Consider the following utility function: U= 4X+Y. A consumer faces prices of P,= $2 and P, =1. %3D…

A: Answer: Given, Utility function: U=4X+Y The formula of the marginal rate of substitution (MRS) is…

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

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Q: Find the maximizing utility for the person consuming two commodities from the following information:…

A: Answer - Total Utility -  It is the total satisfaction received by consuming by a given total…