Suppose the utility function of a person consuming two commodities X and Y.with income Birr 600 is given by U = 2 X 06y 04 If the per unit price of X is Birr 20 and per unit price of Y is %3D Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSSyy at the optimum ?

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: Question 1 Calculate the marginal rate of substitution (MRS12) for the following utility function:…

A: Answer: Given, Utility function:Uq1,q2=74q1+0.6q22 To find the MRS let us find the marginal…

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

A: Given: Maximize U= 2XY Budget= Birr 600 PX = Birr 20 PY = Birr 40 The budget line of the person will…

Q: Diogo has a utility function, 0.2 0.8 U(q,, 92) =q,"42 where q, is chocolate candy and q2 is slices…

A:

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: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…

A: Given  Pizza (P) and Hamburgers (H) are perfect substitute  and utility from 2 slices of Pizza =…

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: Suppose a consumer's utility function is U(x,y) = min{x, y} For this utility function the optimal…

A:

Q: Consider the problem of a consumer who must choose between two types of goods, good 1 (x₁) and good…

A: Utility function: u(x1, x2) = x1 + x2 Marginal Rate of substitution = dudx1dudx2= 12x11 Price of…

Q: ;) Given preferences represented by the utility function u(x1, x2) = min{3x1, x2}. a) Write down the…

A: a) The given utility function is: U= min( 3x1, x2) This represents the utility function of perfect…

Q: Suppose a consumer’s utility function is u = x_1^(3/2) x_2^(3/2) . She spends her budget of £27 for…

A: According to the optimal consumption rule, when a consumer maximises utility, the marginal utility…

Q: How can I analyze and find the Marshallian Demands of the following Utility function?…

A: The perfect complements x1 and x2 would result in the perfect complements which would be consumed…

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: Suppose the utility function is represented by the following equation: U (X, Y) = XY + X + 2Y + 2…

A: A budget limitation refers to the different combinations of goods and services that a consumer can…

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

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Q: Consider a consumer who is choosing between cake (c) and ice-cream (i). Their utility function is…

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

Q: Consider an individual whose preferences are represented by the utility function U(x1,x2) = min…

A: Since you have posted multiple parts question, we will solve the first three parts for you. If you…

Q: Consumer satisfaction from consuming goods X and Y is as follows: U=10X+14Y-X2-Y2 and consumer…

A: Consumer equilibrium is the situation where he gets maximum satisfaction level of utility with given…

Q: Given a consumer has a money budget M = 360 and utility function U(X, Y)=X^(3/4)Y^(1/4). If she…

A: The condition which is needed for the utility maximization is: MUX/MUY = PX/PY where, MUX and MUY…

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: Q)Suppose we have two goods, x1 and x2, with price p1 and p2, respectively. Consider the budget…

A: The budget line shows the optimal combination of two goods and services for the consumer that he or…

Q: A consumer has utility function U(q1, q2) min{4q1, q2}. Find the consumer's (Marshallian) %3D demand…

A: Given  Utility function  U(q1,q2)=min{4q1,q2}       ... (1) Consumer income =y Price of good 1 =p1…

Q: Calculate the marginal rate of substitution (MRS12) for the following utility function: U(q1, 92) =…

A: "Marginal rate of substitution indicates the rate at which a consumer can give up some units of a…

Q: When utility function  U(q1, q2)=min{ 34.6 q1,  17 q2} and  q1= 33 and q2= 60 are given, find…

A: A utility function represents the preferences of a consumer if the consumer has a preference…

Q: Suppose there are 2,000 potential consumers in the Chestnut Hill market for tablet computers. All…

A:

Q: Jane’s utility function on bundles of two commodities (x,y) is given by: U(x,y)=4x2y3. What is the…

A: To calculate the value of Marginal Rate of Substitution.

Q: Jess has the utility function U(x₁, x₂) = min{3x1, 6x2}. The price of x₁ is px₁, Px₂, and his income…

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

Q: What is the value of MRS at the optimal point and what does this value mean?  b) What is the…

A: Utility refers to the level of happiness derived by a person when he./she consumes a good or…

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 Mary has the utility function U(x1, x2) = v(x;) + 2x2 with v such that v' > 0 and v" < 0.…

A: Given, Utility Function, U(x1,x2) = v(x1)+ 2X2, v such that v'&gt;0 and V"&lt;0 As mentioned, x1 =…

Q: Find marginal utility MU for a consumer consuming x amount of a given commodity, where his total…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

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

A:

Q: Consumer has the following utility function U(x,y) = x1/2y1/2 , where the price of good x is 1$ per…

A: The marginal rate of substitution refers to the rate at which a consumer can sacrifice one good to…

Q: There are two goods, coffee and mineral water, available in arbitrary nonnegative quantities (so the…

A: Answer - Given in the question- There are two goods, coffee and mineral water, available in…

Q: Let a consumer's utility function be U(r, y) = r/2y/2. The consumer's income is I = 160 and prices…

A: In economics, utility function is an important concept that measures preferences over a set of goods…

Q: Q11. Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F. Suppose as Case A, Total…

A: Answer: Given, Utility function, UF,C=FC MUF=CMUC=F Total income=$120 Price of food=$2 Price of…

Q: A consumer has S600 to spend on good x and y. Her preferences can be represented by the utility…

A: U(x,y)=100lnx+y Px=$10 Py=$5 M=$600 Optimal bundle is obtained when marginal utility per dollar of…

Q: Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to…

A: The law of diminishing marginal utility states that, when the consumer consumes a commodity without…

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: 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: 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: John's utility function is U(X,Y) = 5min{2x, 3Y}. If his income is 100, and the unit price of the…

A: The utility function with min shows that goods are complements which are consumed together

Q: Consider the following utility function: U= 100x0.50y0.50 A consumer faces prices of P, = $2 and P,…

A: The provided utility function is: U=100X0.50Y0.50

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: For the utility function,  U = 2x1/2 + y  What are the income and substitution effect of price…

A: We are going to use Slutsky equation to identify and calculate income effect and substitution effect…

Q: Find the marginal utility of an additional unit of good z for a consumer with utility function = zi…

A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…