Question

A consumer has the following utility function has two goods X and Y: U (X, Y)...

A consumer has the following utility function has two goods X and Y: U (X, Y) = 20X + 80Y - X^2 - 2Y^2

Where X is his consumption of CDs with a price of $ 1 and Y his consumption of films with a price of $ 2

A) Determine its consumption in X and Y according to its income.

B) Determine its consumption in X and Y if its income is $ 41.

C) What will be its maximum unit?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that there are two goods, X and Y. The utility function is U = XY...
Suppose that there are two goods, X and Y. The utility function is U = XY + 2Y. The price of one unit of X is P, and the price of one unit of Y is £5. Income is £60. Derive the demand for X as a function of P.
Suppose a consumer has the utility function u(x, y) = x + y. a) In a...
Suppose a consumer has the utility function u(x, y) = x + y. a) In a well-labeled diagram, illustrate the indifference curve which yields a utility level of 1. (b) If the consumer has income M and faces the prices px and py for x and y, respectively, derive the demand functions for the two goods. (c) What types of preferences are associated with such a utility function?
1. Suppose utility for a consumer over food(x) and clothing(y) is represented by u(x,y) = 915xy....
1. Suppose utility for a consumer over food(x) and clothing(y) is represented by u(x,y) = 915xy. Find the optimal values of x and y as a function of the prices px and py with an income level m. px and py are the prices of good x and y respectively. 2. Consider a utility function that represents preferences: u(x,y) = min{80x,40y} Find the optimal values of x and y as a function of the prices px and py with an...
Q: Mike consumes only two goods: x and y. His Utility function is given by U(x,y)...
Q: Mike consumes only two goods: x and y. His Utility function is given by U(x,y) = 2x+2y Mike has an income of $200. The price of good y is $2. Suppose the price of good x changes from $1 to $2. 1. Find the compensating variation and explain your answer. Show the CV in a diagram. 2. Find the equivalent variation and explain your answer. Show the EV in a diagram.
Consider a consumer with a utility function U = x2/3y1/3, where x and y are the...
Consider a consumer with a utility function U = x2/3y1/3, where x and y are the quantities of each of the two goods consumed. A consumer faces prices for x of $2 and y of $1, and is currently consuming 10 units of good X and 30 units of good Y with all available income. What can we say about this consumption bundle? Group of answer choices a.The consumption bundle is not optimal; the consumer could increase their utility by...
Consider a consumer with the utility function U(x, y) = min(3x, 5y). The prices of the...
Consider a consumer with the utility function U(x, y) = min(3x, 5y). The prices of the two goods are Px = $5 and Py = $10, and the consumer’s income is $220. Illustrate the indifference curves then determine and illustrate on the graph the optimum consumption basket. Comment on the types of goods x and y represent and on the optimum solution.
Suppose a consumer has the utility function u(x,y)=x+y - (a) In a well labelled diagram illustrate...
Suppose a consumer has the utility function u(x,y)=x+y - (a) In a well labelled diagram illustrate the indifference curve which yields a utility level of 1 (b) If the consumer has income And faces the prices Px and Py for x and y, respectively, derive the demand function for the two goods (c) What types of preferences are associated with such a utility function?
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods...
) A consumer's utility function is given by: U(x,y) = 10xy Currently, the prices of goods x and y are $3 and $5, respectively, and the consumer's income is $150 . a. Find the MRS for this consumer for any given bundle (x,y) . b. Find the optimal consumption bundle for this consumer. c. Suppose the price of good x doubles. How much income is required so that the Econ 201 Beomsoo Kim Spring 2018 consumer is able to purchase...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3...
Tamer derives utility from goods X and Y, according to the following utility function: U(X,Y)= 3 X radical y . His budget is $90 per period, the price of X is PX=$2, and the price of Y is PY=$6. 1. Graph the indifference curve when U= 36 2. What is the Tamer’s MRS between goods X and Y at the bundle (X=8 and Y=2 )? What does the value of MRS means? (أحسب القيمة واكتب بالكلمات ماذا تعني القيمة) 3....
Suppose a consumer has the utility function U (x, y) = xy + x + y....
Suppose a consumer has the utility function U (x, y) = xy + x + y. Recall that for this function the marginal utilities are given by MUx(x,y) = y+1 and MUy(x,y) = x+1. (a) What is the marginal rate of substitution MRSxy? (b)If the prices for the goods are px =$2 and py =$4,and if the income of the consumer is M = $18, then what is the consumer’s optimal affordable bundle? (c) What if instead the prices are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT