Question

b) The consumers utility function is given by U(X,Y) = MIN(2X, 3Y), and the given bundle is X = 3 and Y = 1.

i) MRS = __________________________________________________

ii) Draw your graph in this space:

Answer #1

. 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...

Suppose the utility function is given by U(x1,
x2) = 14 min{2x, 3y}. Calculate the optimal consumption
bundle if income is m, and prices are p1, and
p2.

2.At the bundle (x, y) = (2, 4), what is the MRS of the utility
function U = 3x + 4y?
1.You currently have (x, y) = (4, 1) and your utility function
is U = min{x, 4y}. How many units of x are you willing to give up
to get another unit of y?
3. You are currently at the bundle (x, y) = (4, 2) with a
utility function U = (3/4) ln(x) + (1/4)ln(y). I offer you...

Given the following utility function: U (X,Y) = 2X½ + Y and
given that U = 40
Part 1: Find Y1 for X = 4
Part 2: Find Y1 for X = 9
Part 3: Find Y1 for X = 16
Part 4: Find Y1 for X = 36
Part 5: Find Y1 for X = 49
Using graph paper construct the graph for indifference curve for
U = 40 Given : Py = 20, Px = 5 and I...

Suppose a consumer has a utility function U(X,Y) = MIN (X,Y) + X
+ Y. Using a graph, illustrate the indifference curve that goes
through the bundle X = 3, Y = 3.
I have the answer but could someone explain to me how to
approach the solution and what each part means.

1. A consumer has the utility function U = min(2X, 5Y ). The
budget constraint isPXX+PYY =I.
(a) Given the consumer’s utility function, how does the consumer
view these two goods? In other words, are they perfect substitutes,
perfect complements, or are somewhat substitutable? (2 points)
(b) Solve for the consumer’s demand functions, X∗ and Y ∗. (5
points)
(c) Assume PX = 3, PY = 2, and I = 200. What is the consumer’s
optimal bundle?
(2 points)
2....

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....

a) U = xy
b) U = (xy)^1/3
c) U = min(x,y/2)
d) U = 2x + 3y
e) U = x^2 y^2 + xy
2. All homogeneous utility functions are homothetic. Are any of
the above
functions homothetic but not homogeneous? Show your work.

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....

. The consumer’s utility function for goods X and Y is U =
2X^5/2 + 15Y. Good X is placed on the x-axis and good Y is placed
on the y-axis. Which of the following statements is TRUE? I. The
marginal utility of good Y is 15 II. The MRSXY = 5X 15 III. The
consumer is always willing to trade away 15 units of good Y for 1
unit of good X. a) I and II b) I only...

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