The utility function of a consumer is u = √x + 2y. (a) Look for the demand function of goods x and goods y. (b) Demonstrate mathematically that the demand function of goods x does not depend on income m. (C) Demonstrate mathematically that the demand function of goods y depends on m, Px, and Py.
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- A consumer has set of budget of $800 for the consumption of good X a d Y. The price of Good X is $10 and the price of good Y is $40.The consumer has a utility function given by U (X,Y) = X(0.80)Y(0.20).Find the optimal soloution using a methof that does not involves equations and illustrate the soloution?If the utility function for a consumer is defined by U=f(X,Y)=3√(X^2Y), Given that the consumer's income is 900 currency units and unit price of goods X and Y are 20 and 30 currency units respectively, find the combination of X and Y which optimize the consumer satisfaction.I have two utility equations U= x^2 + y^2 U = x + ay Please draw the IC curves for each of them. And also, find the cost function associated with them and detailed steps. P.s The cost function for U= x+ay is u.min((p(x),p(y)/a)), but do not know how to get i
- True/False Utility refers to the total satisfaction or happiness that an individual get from consuming a product.Ms. Beauty's incremental benefit per day from drinking soda is given in the following scenarios. She values the first soda she drinks at P120, the second at P115, the marginal benefit for 3 soda is P95 and finally the marginal benefit for 4 soda is P60. If the price of soda is P100, the optimal number of soda that Ms. Beauty should drink is: *buyers in the chocolate market demand 200 units of chocolate when price is zero and decrease the purchase of chocolates by 2 units for every one unit increase in price. write down the equation of the demand function in the form of Q= f(P)
- A consumer’s indirect utility function is given byA consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each of the following scenarios, identify which, if any, of the standard assumptions of preferences are violated. (a) The consumer will never eat more than ten kilograms of carrots per day. (b) The consumer cares only about the total weight of the two vegetables consumed, and always prefers more to less. (c) The consumer cares only about the product of the respective weights of the two vegetables consumed, and always prefers a greater product to a lesser one.A consumer utility function is U=(x1,x2) Where X1 is the quantity of good 1 that is bought, X2 is the quantity of good 2 that is bought. The price of good 1 is $10 and the price for good 2 is $2. If the consumer's income is $100 what will the consumer's optimal utility level be? b. Using Lagrange multilplier method. optimise the utility function x0.25 y0.25 subject to the budget constraint 24=x/10+y
- A consumer's preferences are represented by the utility function If the budget constraint is P1X1 + P2X2 = M, determine the demand functions q1(P1, P2, M) and Q2(P1, P2, M). Determine also the indirect utility function V(P1,P2,M).In our basic model of utility maximization, identify the graphical representations of the following concepts: (a) Preferences (b) Resource scarcityTrue/False Marginal utility refers to the satisfaction or pleasure that occur due to the additional consumption of one more unit
