True or False: ( ) when AVC curve is ˃ MC curve, then ATC has a negative slope ( ) If MUy / Py ˂ MUx / Px , to reach equilibrium, the consumer must decrease his consumption of y ( ) The ISO-quant curve is convex toward the origin point which illustrates the law of ↓MRTS.
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True or False:
- ( ) when
AVC curve is ˃ MC curve, then ATC has a negative slope - ( ) If MUy / Py ˂ MUx / Px , to reach equilibrium, the consumer must decrease his consumption of y
- ( ) The ISO-quant curve is convex toward the origin point which illustrates the law of ↓MRTS.
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- An individual´s utility function is U = x0.5 y0.5 While the budget constraint is x + 4y = 100 Derive the expenditure function. Calculate the CV and EV when the price of the good x increases from 1 to 4.Given an individual’s current consumption patterns, we know that the person is consuming in such a manner that he is maximizing his satisfaction. Given a decrease in the price of one of the goods he normally purchases, what will happen to the consumer’s total satisfaction and to the marginal utilities connected with the consumption of this particular good. a) His overall satisfaction will increase, but his satisfaction from the last unit consumed of the good with a decreased price will decrease. b) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will decrease. c) His overall satisfaction will increase and his satisfaction from the last unit consumed of the good with a decreased price will increase. d) His overall satisfaction will decrease and his satisfaction from the last unit consumed of the good with a decreased price will increase. e) We cannot tell about the changes in his total utility or his marginal…I need asnwers of e,f,g Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?
- A consumer prefers to consume two commodities in fixed proportions. Specifically, she prefers to consume 1 unit of x2 and 4 units of x1 at the same time. Represent her utility function and find the most preferred and affordable consumption bundle for prices p1 and p2Assume a consumer has a utility function U(x1, x2) = x1x2 where x1, x2 represents the amount of two goods 1 and 2 consumed in a given time period, find the utility-maximizing consumption function subject to the budget constraint5x1 + 4x2 <= 50You are given the following utility function and price of commodities q1 and q2: U = 3q1+q1q2-5q2-15 P1=3 and p2=2 If the corresponding bugdet is 20. i. Write the consumer's budget equation,augmented objective function, ii.construct a constrained utility maximization problem out of the information given above, Is the second order condition for a maximum satisfied? Iii. Find the optimum level of U and the levels of q1 and q2 that will satisfy the first order condition for a maximum.
- Ann's utility function is U = q1q2/(q1 + q2). Solve for her optimal values of q1 and q2 as a function of p1, p2 and Y.I need asnwers of a,c,g. Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?A consumer is maximising her utility function: U(x, y) = (x¹/³+y¹/³)³, subject to the budget constraint x + 3y = 100. (a) Set up the Lagrangian function of this utility maximisation problem and derive the first-order conditions. (b) What are the utility maximizing amounts of x and y? Also, calculate the Lagrange multiplier. (c) What are the utility maximising amounts of x and y if the budget constraint changes to x + 3y = 50? Also, calculate the Lagrange multiplier.
- I need asnwers of f,g Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line. If total utility at optimum level marginal utility is negative.For the utility function U = Qx0.46Qy(1-0.46) and the budget 100 = 11Qx + 11Qy find the CHANGE in optimal consumption of X if the price of X increases by a factor of 1.5. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
