Question

Lan's utility function is U(x,y) =8.2 x2.3y5.2. If the price of good X is 4.2 and...

Lan's utility function is U(x,y) =8.2 x2.3y5.2. If the price of good X is 4.2 and Lan's optimal bundle has x*=2.8 units of good X and y*=5 units of good Y, what is the price of good Y?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
A consumer derives utility from good X and Y according to the following utility function: U(X,...
A consumer derives utility from good X and Y according to the following utility function: U(X, Y) = X^(3/4)Y^(1/4) The price of good X is $15 while good Y is priced $10. The consumer’s budget is $160. What is the utility maximizing bundle for the consumer? .
Kim’s utility function is given by U = XY. For this utility function, MUx = Y...
Kim’s utility function is given by U = XY. For this utility function, MUx = Y and MUy = X. If good X costs $6, and good Y costs $3, what share of Kim’s utility-maximizing bundle is made up of good X? Of good Y? If the price of good Y rises to $4, what happens to the shares of X and Y in Kim’s utility-maximizing bundle?
) 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...
Claraís utility function is u (x; y) = (x + 2) (y + 1) where x...
Claraís utility function is u (x; y) = (x + 2) (y + 1) where x is her consumption of good x and y is her consumption of good y. (a) Write an equation for Claraís indi§erence curve that goes through the point (x; y) = (2; 8). (b) Suppose that the price of each good is $1 and Clara has an income of $11. Can Clara achieve a utility level of at least 36 with this budget? ( c)...
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...
1. Ann’s utility function from consuming x and y is given by U(x, y) = x...
1. Ann’s utility function from consuming x and y is given by U(x, y) = x 1 4 y 1 4 . a) Write down the budget constraint and rationality condition. b) Find Ann’s demand curves of x and y. c) Now suppose Ann’s income is $100. The price of x is $1 and the price of $y is 2. What’s the optimal bundle? d) If the price of x increases to $2, and other things are the same as...
Assume that Sam has following utility function: U(x,y) = 2√x+y MRS=(x)^-1/2, px = 1/5, py =...
Assume that Sam has following utility function: U(x,y) = 2√x+y MRS=(x)^-1/2, px = 1/5, py = 1 and her income I = 10. price increase for the good x from px = 1/5 to p0x = 1/2. (a) Consider a price increase for the good x from px = 1/5 to p0x = 1/2. Find new optimal bundle under new price using a graph that shows the change in budget set and the change in optimal bundle when the price...
3. Suppose that a consumer has a utility function given by U(X,Y) = X^.5Y^.5 . Consider...
3. Suppose that a consumer has a utility function given by U(X,Y) = X^.5Y^.5 . Consider the following bundles of goods: A = (9, 4), B = (16, 16), C = (1, 36). a. Calculate the consumer’s utility level for each bundle of goods. b. Specify the preference ordering for the bundles using the “strictly preferred to” symbol and the “indifferent to” symbol. c. Now, take the natural log of the utility function. Calculate the new utility level provided by...
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....