. Calculate and represent the indifference curves that pass through the bundles (x, y) = (1,1) and (x, y) = (1,2) of individuals whose preferences are represented by the functions of utility:

Q: Answer the following questions  a) Steak and salad for a person who neither like nor dislike…

A: If a commodity is a “good” then the fundamental principle of ‘more is better’ follows. The…

Q: Leonora has the utility function u(x, y) = 4x - y^2 a.Draw the indifference curve for a utility…

A: U(x, y) = 4x - y2 MRS = MUxMUy = 42y Hence the slope of the indifference curve is  2/y

Q: 1. Consider the utility function: U (x,y)=√√√x² - y² a. What is the MRS? b. Does this utility…

A:

Q: 6. Suppose that a fast-food junkie derives utility from three goods - softdrinks (x), 0.5 0.5…

A: Given, Utility Function: U(x,y,z)=x0.5y0.5(1+z)0.5 px=0.25py=1pz=2 Income (M) = 2

Q: (1) For each of the three Indifference Curve Maps, what can you infer about the relationship of the…

A: An indifference curve basically shows a combination of two commodities that supply the consumer with…

Q: 3. Susan has the following utility function U(x,y) = xy, where x represents food and y represents…

A: *SOLUTION :-  * (3)

Q: Q1: (I)Asma eats only apples and almonds. Her level of income is $36, Price of apple (Pa) is $2 per…

A: We have the following information related to the question:

Q: Q.4 Consumer attains his/her equilibrium at a point where the budget line: (a) Is below indifference…

A: Indifference curve: - it is the graphical representation of different combinations of two goods that…

Q: 1. Paul derives utility from cups of coffee (C) and donuts, which he eats a dozen at a time (D). His…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: marginal utility for custard (U.). What is Amelia's marginal rate of substitution (MRS)? Give a…

A: Different utility levels of consumers are taken to be independent. This means that utility obtained…

Q: ion 8 (Utility). Suppose a consumer's utility function is given by U(x₁, x2)=X₁*X2 a) Draw an…

A: Introduction An indifference curve (IC) is a mathematical representation of a collection of products…

Q: 2. Consider these three utility functions: u1 = 2122 U2 = In z1 + In a2 Which of these functions can…

A: utility function is an important concept that measures preferences over a set of goods and services.…

Q: 2. Suppose that you are perfectly indifferent between a cup of coffee (e) and a cup of tea (t). (a)…

A: Indifference curve: Indifference curve shows different combinations of 2 goods such that consumer’s…

Q: 5

A: Utility is the measure of satisfaction that a consumer derives from the consumption of a good or a…

Q: Calculate your marginal rate of substitution as a function of B and C.   U(B,C)= B^(1/4)C^(3/4)

A: The marginal rate of substitution denotes the slope of the indifference curve and is defined as the…

Q: Refer to the diagram below to answer the following three questions. 10 94 8 5. B 2 3 4 5 6 7 8 9 10…

A: The indifference curve shows various combinations of two goods which gives the consumers the same…

Q: 2. Explain how applying the axioms of completeness, transitivity and strict monotonicity to consumer…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Suppose that a consumer with the utility function U = X0.25 y0.75 chooses a consumption bundle…

A:

Q: Suppose that a consumer’s utility function for two goods (X and Y) is U(X,Y) = 10X^0.5 + 2Y , with…

A: Utility Function : 10x0.5 + 2Y  Px = 5  (Price of x ) Py 10   (Price of y ) Income = m = 275…

Q: a. Explain why indifference curves cannot slope upwards. b. Show a map of indifference curves for…

A: The indifference curve is the graphical representation of the combination of quantities of the two…

Q: 4. The CES utility function is given by U (x, y) = * (i). Show that the first-order conditions for a…

A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: Consider the utility function U(x, y) = xy + x. Which of the following bundles is not on the same…

A: We have to calculate the value of U for all (x,y). The bundle which gives the different result will…

Q: 8. Show that if strict preferences > over three outcomes x, y and z, do not satisfy transitivity, so…

A: 8. The strict preferences are the preferences that are strictly preferred. For example if x is…

Q: 1. Consider a consumer with utility u(x1,x2) = .5lnx1 + .5lnx2 (b) Now, consider an equivalent…

A: Given Utility function U=5lnX1+5lnX2 Equivalent utility function V=X15X25

Q: Let the utility function and the budget constraint be as follows: u(x1, 82) = }Inxı + žln¤2…

A: Given utility function U=1/2lnX1+1/3lnX2 Budget constraint M=p1X1+P2X2

Q: Suppose you're facing a problem with quasilinear preferences over goods x₁ and x2 represented by the…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: Sapphira loves shopping. However, she can only buy a set of items following these three preferences:…

A: A graph's indifference curve is a line that represents all the possible pairings of two products…

Q: Jean-Pierre has preferences represented by the utility function U( x, y) = min{ 2 x + y, x + 6 y}.…

A: Utility is the satisfying power of a good. Consumers always choose to maximize their utility when…

Q: Suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y). His…

A: An indifference curve depicts the combination of two goods that derives the same level of utility.…

Q: Question 4 Susan loves sandwiches and lemonade. Her utility functions is U (s, 1) = min{s²+ 212, 2s2…

A: Utility function : U (s, l) = min{s2 +2L2 , 2s2 +L2 }, Optimal consumption point for a consumer is…

Q: Isn't the utility function is perfect complement: min{} and the indifference curves should be…

A: A potential extension to the analysis is general equilibrium analysis or how demand and supply…

Q: Assume the prices of r and y are 1 and income is 10. For the following two utility functions, find…

A: The consumer equilibrium is reached where indifference curve tangents the budget line.

Q: What information is contained in an indifference curve? Why are such curves (a) Downward sloping and…

A: The indifference curve consists of a set of points that represents a different combination of…

Q: Depict utility function on a number line: U(x)=(x-6)^2 Indifference set around x=3 Lower contour set…

A: U(x) = (x-6)^2

Q: 14.8. Income effect and substitution effect. Consider Figure 4.16, depicting the preferences of a…

A: A budget constraint refers to the constraint imposed on consumer choice by their limited budget.

Q: 5. Find the optimal bundle using the following utility functions and budget constraints. 1. U(x,…

A: To find the optimal bundle, one need to equate the ratio of utility of two goods to the ratio of…

Q: 1) Use the graph below to explain why, if all assumptions about preferences are met, thick…

A: The indifference curve of the consumer shows all the different combinations of two goods that…

Q: What would the indifference curve for a utility function of u(c,l)=log(c)-l look like if MRS =…

A: Indifference curve is tue two goods possible combination which give same satisfaction level to the…

Q: (a) Suppose we have preferences U(X, Y) = min [X, 3Y]. Graph/sketch the indifference curve through…

A: Here we are given the utility function which is a function of 2 goods X & Y. And we are also…

Q: 4. Mrs. May always drinks each cups of coffee (1) with two spoons of sugar (22). She would never…

A: Utility refers to the satisfaction or happiness that a consumer get from the consumption of goods or…

Q: (c) What kind of preferences are represented by a utility function of the form u(21,72) = VE1+ 12?…

A: The utility is the want satisfying power of the commodity. The utility would result in the demand of…

Q: 5. Suppose a preference relation is represented by a utility function u(x₁, x₂) = x₁ + x₂. Explain…

A: Introduction  In economics, utility function is a important concept that measure preference over a…

Q: 5) Consider indifference curves for the consumption of milk and chocolates (you may assume that both…

A: The indifference curve refers to the curve that shows the combination of two goods in various…

Q: Draw indifference curves for two goods x and y, where they are perfect complements with a fixed…

A: The indifference curve represents the different combinations of two good that provide same level of…

Q: Yungin always gets twice as much satisfaction from an extra burger as he does from an extra Boost…

A: A consumer is indifferent between any two combinations of two goods when it comes to making a choice…

Q: Sean and Yvette Durand live in Edmonton and enjoy going out to fancy restaurants for dinner and to…

A: The budget line is the combination of two goods bought by consumers for a given level of income. It…

Q: What information is contained in an indifference curve? Why are such curves (a) downsloping and (b)…

A: Concerning two commodities, an indifference curve is a graph showing those combinations of the two…

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.