Question

Sketch indifference curve for the given utility levels. Describe in a sentence or two the consumer's...

Sketch indifference curve for the given utility levels. Describe in a sentence or two the consumer's preferences for the two goods.

U(x,y) = 2y ; U=10

U(x,y) = x + y ; U=10

U(x,y) = min(x,y) ; U=10

U(x,y) = x-y ; U=10

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.

The preference are such that the utility ia independent of good x.

2.

Good x and Good Y are substitute goods in this case.

3.

The two goods Good X and Good Y are complementary goods.

4

Utility decreasss as we consume more of good Y . So good Y is unwanted good.

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
Graph the following indifference curves for the given utility levels: U (x, y) = min {...
Graph the following indifference curves for the given utility levels: U (x, y) = min { 1/5 X, Y} for U = 5, 10, 15, 20, 25 and 30. What kind of relationship exists between these goods? Substitutes? Complements?
Consider the following utility functions over goods X and Y for two individuals: Daves utility function...
Consider the following utility functions over goods X and Y for two individuals: Daves utility function : Ud(x,y) = 6min(x,y) Jess's Utility function is Uj (x,y) = 6x + 3Y Draw Daves indifference curve map for two specific utility levels: U= 6 and U = 12 Draw Jess indifference curve map for two seperate utility levels: U=6 and U=12 Explain the preferences between the two What is the MRS for Dave? and for Jess?
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is...
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by U = MIN [2X, Y]. Sketch the graph of the consumers indifference curve that goes through the bundle X = 5 and Y = 6. Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis. Which of the three assumptions that we made about consumer preferences is violated in this case?
Question 1 The following are key characteristics of Indifference Curves, EXCEPT: A. Each indifference curve identifies...
Question 1 The following are key characteristics of Indifference Curves, EXCEPT: A. Each indifference curve identifies the combinations of X and Y where the consumer is equaly happy. B. Indifference curves are convex to the origin because X and Y are assumed to be close substitutes. C. For any combination of X and Y there is one and only one Indifference Curve. D. Indifference curves cannot logically cross between them if preferences are well defined. Question 2 The following are...
1.Suppose there are two consumers, A and B. The utility functions of each consumer are given...
1.Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X^1/2*Y^1/2 UB(X,Y) = 3X + 2Y The initial endowments are: A: X = 4; Y = 4 B: X = 4; Y = 12 a) (10 points) Using an Edgeworth Box, graph the initial allocation (label it "W") and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to label your graph carefully and accurately....
Let U (x ,y) = x ,y represent the consumer's utility function. If the consumer's income...
Let U (x ,y) = x ,y represent the consumer's utility function. If the consumer's income (M) is $1,000, the price of Good X is $10, and the price of Good Y is $20, what is the slope of the budget line or market rate of substitution between Goods X and Y?
Consider a consumer whose preferences over the goods are represented by the utility function U(x,y) =...
Consider a consumer whose preferences over the goods are represented by the utility function U(x,y) = xy^2. Recall that for this function the marginal utilities are given by MUx(x, y) = y^2 and MUy(x, y) = 2xy. (a) What are the formulas for the indifference curves corresponding to utility levels of u ̄ = 1, u ̄ = 4, and u ̄ = 9? Draw these three indifference curves in one graph. (b) What is the marginal rate of substitution...
. Suppose utility is given by the following function: u(x, y) = min(2x, 3y) Suppose Px...
. Suppose utility is given by the following function: u(x, y) = min(2x, 3y) Suppose Px = 4, Py = 6, and m = 24. Use this information to answer the following questions: (a) What is the no-waste condition for this individual? (b) Draw a map of indifference curves for these preferences. Be sure to label your axes, include the no-waste line, and draw at least three indifference curves. (c) Given prices and income, what is the utility-maximizing bundle of...
A consumer's preferences are given by the utility function u=(107)^2+2(x-5)y and the restrictions x>5 and y>0...
A consumer's preferences are given by the utility function u=(107)^2+2(x-5)y and the restrictions x>5 and y>0 are imposed. 1. Write out the Lagrangian function to solve the consumer's choice problem. Use the Lagrangian to derive the first order conditions for the consumer's utility maximizing choice problem. Consider only interior solutions. Show your work. 2. Derive the Optimal consumption bundles x*(px,py,w) and y*(px,py,w) 3. Use the first order condition from 1 to calculate the consumer's marginal utility of income when w=200,...
Show that if a consumer's utility function is given by U = 2X + Z, and...
Show that if a consumer's utility function is given by U = 2X + Z, and prices are pX = 2 and pZ =1, there is no unique utility maximizing solution regardless of income level. What does this tell you about X and Y as commodities?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT