True or False? The preferences represented by the utility function u(x, y) = A + 0.4 * log(x) + 0.6 * log(y) are convex. True False

Q: Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, which of…

A:

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

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: We claimed in the text that if preferences were monotonic, then a diagonal line through the origin…

A: Indifference curve refers to the graphical representation of various combinations of two goods,…

Q: Suppose we know that the marginal utility of good 1 is: 4x1?x2?, from this we can conclude that: The…

A: If the individual really likes the good 1, then good 1 can any one type of good out of the 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: How does a rational consumer choose his optimal consumption bundle? Graphically show the…

A: The economics as a study is based upon the idea that the economies, and the societies around the…

Q: indifference curve at utility level equal to 20 is?

A: Utility means the satisfaction that a consumer gains from consuming a product or service. Utility…

Q: A well-behaved utility function is assumed to exhibit monotonic and convex preferences. (1) Define…

A: lets solve part 1 and part 2 in the following steps

Q: Which of the following statements is correct? Indifference curves cannot intersect due to the…

A: Indifference curve is a locus of different combinations of two goods that are consumed by consumers…

Q: Show that the following utility function satisfies all axioms of consumer preference: U%3Dху х,у20

A: The utility function shows the numerical measurement of the preference and the satisfaction. The…

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: As a consumer moves along an indifference curve, then each point to the right will show higher…

A: Indifference curve is an indicative curve for any firm which shows combination providing equal…

Q: Let the utility function of a consumer is given by the following function U = (x + 1)(y + 1) a. Find…

A: Given utility function  U=x+1y+1             ............ (1)

Q: Total utility is maximized when marginal utility becomes (positive, zero, negative)

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: ighted twice as heavily as the 1st, what would your indifference curves between the two homework…

A: A utility perform might be a numerical connection that positions heaps of utilization stock by task…

Q: The marginal utility for the third unit of X is 60 utils, and the marginal utility for the fourth…

A: The law of diminishing marginal utility states that  as consumer consumes more and more of a good,…

Q: According to behavioral economics research, in which of the following cases would we expect a person…

A: Behavioral economics refers to the studies of the effects of psychological, emotional, cultural,…

Q: True or false.  Maximizing choices occur when combinations of two goods are made such that they are…

A: An indifference curve is a contour line with the same utility at all points along the line. A line…

Q: if both x1 and x2 are "bads", utility will increase i) As x1 or x2 increases ii) As the marginal…

A: Dear student, as you have posted multiple questions but according to the policies and guidelines of…

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: An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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: Suppose marginal utility of good X is 20 while its price is Rs. 4 per unit and marginal utility of Y…

A: (Q) Suppose the marginal utility of good X is 20 while its price is Rs. 4 per unit and the marginal…

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

A: Answer -

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: 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: 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: Suppose consumer are always ready to trade k units of good X for w units of good Y. Then, which of…

A: In this case, the consumer is ready to trade k units of good X for w units of good Y. This means…

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: Check if the following utility functions represent the same preferences: u = x+y, v = x3 + y3, w =…

A:

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: Give examples of preference relation that is monotone but not continuous and is representable by a…

A: In Microeconomics and Consumer Behavior, monotonicity of any preference relation refers to the…

Q: Muoki says, “I’d rather see an action movie than a comedy, and I’d rather see a comedy  than a…

A: Transitivity Axiom: Suppose there is three bundles, i.e., A, B, and C If consumer prefers A over B,…

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: The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is…

A: Given information:  Price of a=$5  Price of b=$15    MU of a=20    MU of b=?

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: 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: Indifference curves are convex to the origin because of: A) the assumption that more is preferred to…

A: Indifference curve shows combinations of two goods that give same level of utility to consumers.

Q: Indifference curves slopes down because there is a tradeoff between goods. If you give up some of…

A: the points with equal level of satisfaction.Some properties of Indifference curve are as:-1)…

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

Q: The non-satiation assumption we make about people's's preferences entails that the indifference…

A: Indifference curve shows combinations of two goods that give same level of utility.