Use the following information to solve the next two questions: Suzette's preferences for x1 and x2 are consistent with the utility function U (x1, X2) = Vx1+ X2. She can purchase good 1 for $2 each and good 2 for $32 each. She has $160 to spend on the two goods. (4) What is the marginal rate of substitution at the point (4, 4)? Find the absolute value. (a) 1/8 (b) 1/4 (c) 1/2 (d) 1 (e) None of the above (5) How many units of good 2 will she purchase to maximize her utility? (a) 1 (b) 2 (c) 3 (d) 4 (e) None of the above

Q: Consider the following utility function: U=100X^0.75 Y^0.10. A consumer faces prices of Px = $5 and…

A: Given, U=100x0.85y0.10

Q: Refer to Figure#4. Which of the following statements is NOT true for a consumer who moves from point…

A: Marginal rate of substitution are not same for 2 points lying on the same indifference curve.

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 one of the following statements is definitely correct for the marginal rate of substitution…

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A: Marginal rate of substitution is the rate at which one good is substituted for other. It is the…

Q: Which of the following statements is true?     Total utility is the extra satisfaction from the…

A: Utility refers to the satisfaction received from consumption of a good or service. In other words,…

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Q: If a consumer has chosen optimally, their Marginal Rate of Substitution is equal to the price…

A: Marginal rate of substitution (MRS) is the rate at which an individual will be willing to substitute…

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

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

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A: Answer to  the question is as follows :

Q: Mrs. Griffiths earns $5000 a week and spend her entire income on dresses and handbags. Since these…

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

A:

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Q: Q1) For the utility function in part a below, draw a set of indifference curves showing utility…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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: Suppose a consumer’s utility function is u = x_1^(3/2) x_2^(3/2) . She spends her budget of £27 for…

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Q: Carol has very weird preferences. She only cares about quantity. When evaluating a bundle, Carol…

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Q: Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these…

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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-

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Q: Refer to Figure#4. Which of the following statements is NOT true for a consumer who moves from point…

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Q: x0.25 y0.75 and has an income of As in question 2a, A consumer has a utility function given by U…

A: U = x0.25y0.75 MRS = MUxMUy = 0.25x-0.75y0.750.75x0.25y-0.25 = 1y3x Before Price change: MRS =…

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Q: Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P,…

A:

Q: The figure below shows a consumer maximizing utility at two different prices (the left panel) and…

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Q: Consider the following utility function: U= 100x0.50y0.50 A consumer faces prices of P, = $2 and P,…

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A: U (x1 , x2 ) = α ln(x1) + (1 − α) ln(x2) α=0.25 U (x1 , x2 ) = 0.25 ln(x1) + 0.75 ln(x2)

Q: Consider the following utility function: U= 100x 50,0.50 %3D A consumer faces prices of P, = $2 and…

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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