Suppose the weighted marginal utility for two goods x and y at a position of consumer equilibrium 70. If the price of good x is r10 and the relevant marginal utility for y is 140 what is the price of good y and the relevant marginal utility for x

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A: Given inverse demand function for Kari :- Rearranging, QK = 1000 - 4P (Denoting Kari's quantity…

Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to…

A: Given, U(X,Y) = X1/2*Y1/2 Income of the consumer = $ 72 Price of X = $1 Price of Y= $1 Utility is…

Q: Which statement BEST describes the principle of diminishing marginal utility?

A: C is the correct option and describes the principle of marginal utility.

Q: Suppose that Sam has a utility function u(x, y)= x+y where x is the amount of good 1 and y is the…

A: Py = 20 , px = 30 , px' = 10 and M=90

Q: 44) A person is in equilibrium when marginal utility per dollar equals 1. False True

A: When a consumer spends his given income on the purchase of certain goods in such a way that he…

Q: If a good is a Normal Good and its price decreases, what are the directions of the Substitution…

A: Answer- (A)   That is both increases

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A: The consumer either uses jam or peanut butter in normal cases if the price of jam increases then the…

Q: Show that the two utility functions given below generate identical demand functions for goods X and​…

A: Utility function with the same marginal rate of substitution (MRS) will going to generate the same…

Q: Consider the following utility function.   U=U(X,Y)=X0.2Y0.8   Find the marginal utilities.…

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

Q: What do you understand by price line and budget line? Assuming that a consumer has a monthly income…

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Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: Consider the consumer whose tastes and preferences for (X) and (Y) can be characterized by the…

A: The utility function can be written as follows: The budget constraint can be written as follows:

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

A: Answer: A consumer maximizes his/her utility where the following condition satisfies:…

Q: Suppose that a consumer with the utility function U = X0.75 Y0.25 choses a bundle where X=10 and…

A: Marginal utility per dollar is the ratio of marginal utility to the price of the good. It increases…

Q: Suppose that Sam has a utility function u(x, y)= xy2 where x is the amount of good 1 and y is the…

A: Given  Sam's utility function: u(x,y)=xy2          .... (1) The price of good 1 is px and price of…

Q: Complete each of the following sentences: Your tastes determine the _____________ you derive from…

A: Whenever consumers consume the good, they derive utility from consuming it which determined by the…

Q: What condition should be met in order for the consumer to maximize satisfaction in the consumption…

A: Consumer Utility Maximisation - Utility maximisation is an important concept in microeconomics. It…

Q: Given a utility function that represents preference over bundles which consists of two goods. Can we…

A: To analyze consumer behavior and their satisfaction from the consumption of goods and services,…

Q: Donna and Jim are two consumers purchasing strawberries and chocolates. Jim’s utility function is U…

A: The utility function for Jim is given as follows: The income of Jim is given as $100. Thus; The…

Q: Suppose that a consumer with the utility function U = X^.75 Y^.25 choses a bundle where X=10 and…

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Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Given,  U= 0.5xy2

Q: A consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is…

A: A rational consumer utility is maximized at a point where the slope of the budget line is equal to…

Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to…

A:

Q: You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the…

A: UNIT OF X MUx UNITS OF Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 Given…

Q: Suppose a consumer has preferences between two goods that are perfect substitutes. Can you change…

A: In economics, the price of a good and the quantity consumed are inversely related. When the price…

Q: Kari and Hector both are interested in buying pizza slices for lunch. Kari's inverse demand for…

A: Kari's Inverse Demand : P=250-Q/4 Hector's Inverse Demand : P=150-Q/10 Market comprises of only…

Q: Roisin consumes only two goods, X and Y, and her utility function is given by U = XY. Her income is…

A: Condition for equilibrium combination: Marginal Rate of Substitution = Price Ratio MRS = MUx/Muy =…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: Here,

Q: When the price of good 1 decreases, the following is true (select all that applies): a) If good 1 is…

A: Goods refers to the products that meet human desires and give usefulness, such as a gratifying…

Q: Katie consumes X and Y in fixed proportions: a units of X and b units of Y. To find Katie's demand…

A: Here for Katie, X and Y are perfect complements. Katie's utility function is given by,…

Q: To reach consumer equilibrium, which of the following consumption choices must be made? The total…

A: Answer - Need to find- To reach consumer equilibrium, which of the following consumption choices…

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: If the price of good x1 and p1 = 2, the price of good x2 is p2 = 3, Kramer's available income is m…

A: We have given that  price of good x1 (p1) =2 Price of good x2  (p2)=3 Kramer's income (m)=16 Utility…

Q: Question 8 An optimizing consumer will select the consumption bundle in which the marginal rate of…

A: Marginal Rate of substitution is the volume of good that a consumer is willing to consume in…

Q: The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last…

A: Marginal utility is the utility derived from the consumption of an additional unit of the good. When…

Q: Total utility (utils) 0 80 120 148 160 155 Quantity consumed per day 0   1     2     3…

A: Quantity consumer per day Total utility (utils) 0 0 1 80 2 120 3 148 4 160 5 155

Q: Assume the budget constraint and the indifference curves are both linear. Assume the consumer is…

A: An indifference curve measures the combination of two goods that provides the same amount of…

Q: If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals…

A: ''Since multiple questions are asked, we are supposed to answer one question''   Marginal Utility is…

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: If consumers buy less of a commodity when their incomes rise, this commodity is  ( an inferior good…

A: In the market, the change in the consumers buying decision depends upon two types of price effect,…

Q: U = U ( x 1, x2)  = (x1 + 2) 2 (x2 + 3) 3

A: The Marginal utility is a satisfaction which consumer derive by consuming one more unit of…

Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…

A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…

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…

A:

Q: Bob views apples and oranges as perfect substitutes in his​ consumption, and MRS​ = 1 for all…

A: The marginal rate of substitution in economics is the amount of a good that a consumer is willing to…

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