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Q: Assume that a∈[-1,1] and θ∈(0,2). The utility function is given by u(a,θ)=a(θ-1). Which of the…
A: Ex-post is simply defined as 'after the event ' which can be associated with any event in hindsight…
Q. The set of all the alternatives a consumer can afford is shown by
a) an indeffirence curve
b) a budget line
c) a supply curve
d) a tradeoff
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- Question 3 The equilibrium condition which maximizes the satisfaction of a consumer is given by: P X = P Y MU X = MU Y MU X / Q X = MU Y / Q Y None of the suggested options MU X / P X = MU Y / P YSuppose a consumer has a budget of $200 to spend on two goods, X and Y, whose prices are $20 and $10, respectively. If the consumer is observed to buy 5 units of X and 10 units of Y, where the respective Marginal Utilities of X and Y are, 50 and 40 utils, is the consumer in equilibrium? Explain why or why not. If the consumer is not in equilibrium under conditions in d), suggest another combination that would possibly achieve equilibrium. Explain your answer.Rational Behavior imples that a) a person recognizes the real cost of acquiring or doing something. b) a person will choose among preferences so as to maximize his or her satisfaction c) a person has prefernces and can identify them d) all of the above
- The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is 20 then the marginal utility of good "b" must be ________ to have an optimum combination of goods purchased. 80 20 60 4Individuals in a market each have a total budget y to spend on two goods q1 and q2 at the prices p1and p2 respectively. Their preferences are described by the utility function below. As in part (a), how can I show the demand of good 2?28. Alternatives that are all equal satisfying to a consumer are illustrated by a) an indifference curve b) a supply curve c) a budget line d) a trade off
- The marginal utility of the last unit of apples consumed is 12, and the marginal utility of the last unit of bananas consumed is 9. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium? Multiple Choice $3 and $4 $4 and $3 $9 and $12 $15 and $10As a person receives more of a good, the _______________ from each additional unit of the good declines. Group of answer choices cost sunk costs marginal utility budget constraintFor the utility function U = Qx0.15Qy(1-0.15) find the trade-off rate between good X and good Y at Qx= 9 and Qy=13
- With the aid of a diagram, describe a corner solution and explain the axioms of consumer choice.Question 2 True or False Provide a brief explanation For the Cobb-Douglas utility function the optimal choice of good i is independent of the price of good j. Full explain this question very fastOn Sundays, people in Los Angeles consider a boat to Catalina Island to spend the day on the beach there. The utility that a person gets from visiting Catalina is 1-[n/10] – p , where n is the number of visitors on the island and p is the price of round-trip transportation (by boat). (Note that a visitor obtains more satisfaction if there are fewer other visitors on the island). The utility of staying home is zero. In equilibrium, how many people visit the island on a given Sunday? ( Your answer should depend on p.)
