Question

What is the utility maximizing basket when I = 12, px = 2, py = 4,...

What is the utility maximizing basket when I = 12, px = 2, py = 4, u(x,y) = 3xy-21x

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
Using the utility function U(x,y)=3x+y/2, px=7, py=1, and M=46 , what is the utility-maximizing demand for...
Using the utility function U(x,y)=3x+y/2, px=7, py=1, and M=46 , what is the utility-maximizing demand for y, y*?
Let income be I = $90, Px = $2, Py = $1, and utility U =...
Let income be I = $90, Px = $2, Py = $1, and utility U = 4X½Y. a.[12] Write down and simplify the two conditions required for utility maximization. b.[6] Compute the optimal consumption bundle for the consumer. What is the level of utility at the optimum?
Given the following utility function and budget contraints: U(X,Y) = XY I = Px (X) +...
Given the following utility function and budget contraints: U(X,Y) = XY I = Px (X) + Py(Y) and given that: Py = 10 , Px=12 and I = 360 Fill in the blanks in the following table (round to two decimal places): Part 1:     What is the Value of Qx? Part 2:     What is the Value of Qy? Part 3:     What is the Optimal level of utility?
The consumer’s Utility Function is U(x,y) = X1/2Y1/2. Further Px = $5 and Py = $10...
The consumer’s Utility Function is U(x,y) = X1/2Y1/2. Further Px = $5 and Py = $10 and the consumer has $500 to spend. The values of x* = 50 and y* = 25 maximizes utility. The dual to the utility maximization problem is expenditure minimization problem where the consumer choose x and y to minimize the expenditure associated with achieving a specified level of utility. That is, Choose x and y to Minimize Expenditure 5x + 10y subject to U...
1) For a linear preference function u (x, y) = x + 2y, calculate the utility...
1) For a linear preference function u (x, y) = x + 2y, calculate the utility maximizing consumption bundle, for income m = 90, if a) px = 4 and py = 2 b) px = 3 and py = 6 c) px = 4 and py = 9
Let U=X1/2Y2, dU/dX=(1/2)X-1/2Y2, dU/dY=2X1/2Y Px=$15, Py=$3 and I=$300 1.(2 pts)_______________________ What is the level of happiness...
Let U=X1/2Y2, dU/dX=(1/2)X-1/2Y2, dU/dY=2X1/2Y Px=$15, Py=$3 and I=$300 1.(2 pts)_______________________ What is the level of happiness at X=16, Y=6? 2. (2 pts)_______________________What is the marginal utility of X at this point? 3.(2 pts)________________________ What is the slope of the indifference curve at this point? 4.(2 pts)_______________________ At this point, which is larger: the marginal utility of the last dollar spent on X or the marginal utility of the last dollar spent on Y? (You must show both marginal utilities per...
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...
May I get any assistance with these following questions please? U(x,y)=min(4x,2y) Prices: px,py Incme : I...
May I get any assistance with these following questions please? U(x,y)=min(4x,2y) Prices: px,py Incme : I 1)Find Marshallian demand. 2) Find Hicksian demand, indirect utility function and expenditure function.
2. For Each of the following situations, i) Write the Indirect Utility Function ii) Write the...
2. For Each of the following situations, i) Write the Indirect Utility Function ii) Write the Expenditure Function iii) Calculate the Compensating Variation iv) Calculate the Equivalent Variation a) U(X,Y) = X^1/2 x Y^1/2. M = $288. Initially, PX= 16 and PY = 1. Then the Price of X changes to PX= 9. i) Indirect Utility Function: __________________________ ii) Expenditure Function: ____________________________ iii) CV = ________________ iv) EV = ________________ b) U(X,Y) = MIN (X, 3Y). M = $40. Initially,...
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,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT