10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at point A is greater on IC1 vs. IC2. The utility a person gets from consuming an additional unit of Good Y at point A is greater on IC2 vs. IC1.
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- The following five individuals have different utility functions over food (good x) and clothing (good y): 1) u₁(x, y) = 3x²y 2) u₂(x, y) = 2√x + y 3) Uz(x, y) = x0.6y0.4 4) u₁(x, y) = x² + y² 1 5) us(x, y) = x + 3y For each of these people: a) Compute their marginal utilities of good x, MUx = Ju(x,y) MU, = ду du(x,y) ax b) Check whether the property of "more is better" is satisfied for both goods? Explain. [Hint: Check whether marginal utilities are positive assuming positive amounts of good x and good y] ƏMUX əx and marginal utility of good y, c) Does the marginal utility of good x diminish, remain constant, or increase as each of the individuals buys more x? Explain. [Hint: There are 2 ways to do it: 1) visually check what happens to the expression of MUx when x increases (does it decrease, keep constant or decrease?); or 2) take the partial derivative of this marginal utility with respect to x, that is ƏMUx .aMUX ƏMUX If 0, the marginal utility of x is increasing in x] d) Does the…Question 22: Kathy gets utility from three things: the number of flowers in her local park (F), reading books in this park (R), and eating sushi (S). Four utility functions that might describe Kathy's preferences are shown below. In each case, discuss whether reading in the park (R) is non-essential and whether reading (R) and the number of flowers in the park (F) are weak complements. [medium] (a) U(F, R, S) = 2FR+ S (b) U(F, R, S) = /2FR+ S (c) U(F, R, S) = (V2FR)S (d) U(F, R, S) = /2F+ RShelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
- Matthew Hamming is stranded on an island. He has decided that he will spend exactly 10 hours a day gathering food. He can either spend this time gathering coconuts or catching fish. He can catch 2 fish per hour and he can gather 3 coconuts per hour. Matthew's utility function is U(FC) = 3F0.60.3 a. How many fish should Matthew catch and how many coconuts should he gather so that his consumption maximizes his utility? Illustrate the equilibrium with a graph b. One day a native inhabitant of another island arrives on the island. The visitor offers Matthew trade of 3 fish for 1 coconut. The trade fee costs 1 fish (that must be paid prior to the exchange). Will Matthew decide to trade? What will Matthew produce and consume? Justify your answer and provide a graph.Suppose that Biff enters a hot dog eating contest. He enjoys hot dogs, so he gladly pays the $20 entry fee. Biff realizes there is very little chance that he will actually win the contest. He just likes the idea of being able to eat all the hot dogs he wants. The table below shows Biff's utility from eating hot dogs. Instructions: Enter your answers as a whole number. If you are entering a negative number include a minus sign. a. Use the table below and fill in the marginal utility. Hot Dogs and Biff's Utility Hot DogsTotal Utility (utils)Marginal Utility (utils) ues for 7 8 9. 10 11 42 46 49 51 50 47 b. If Biff is rational, and has no intention of winning the hot dog eating contest, what is the optimal number of hot dogs he will eat? What is the maximum level of utility Biff can reach from eating that number of hot dogs? Optimal number of hot dogs: Maximum utility:Please provide full derivation, and 5. Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y2 dollars. Cheese is sold in the usual way at a price of 2 dollars per unit. Casper's income is 20 dollars and his utility function is U(x, y)=x+2y, where x is his consumption of cheese and y is his consumption of cocoa. a. Sketch Casper's budget set and shade it in. b Sketch some of his indifference curves and label the point that he chooses. c. Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income.
- Problem 1 Last week, neither Alistair nor Bodana purchased blueberries (x). Both consumers had $30 to spend on blueberries and/or raspberries (y), the price of the two fruits was $3 per pack and both consumers bought raspberries only. Alistair's utility for blueberries and raspberries is UA(x,y) = x+2y. Bodana's utility for blueberries and raspberries is UB(x,y) = x +12ln(y). a) In two separate graphs, illustrate Alistair's and Bodana's optimal choices. Your graphs must illustrate the consumers' budget constraints and their indifference curves at the optimal bundle. b) At their optimal bundle, what is Alistair's marginal rate of substitution of raspberries for blueberries (- MUx/MUy)? At their optimal bundle, what is Bodana's marginal rate of substitution? This week, blueberries cost $3 per pack just like last week, however raspberries now cost $4 per pack. c) How many packs of blueberries and raspberries will Alistair buy this week? Clearly justify your answer. d) Using the…Refer to the graph below Quantity of Y 160 0 Multiple Choice The consumer's income is $1,000 Why doesn't the consumer choose the combination at point B O Quantity of X 200 O The marginal utility of Y exceeds the marginal uplity of X O The consumer is willing to give up more X for an additional unit of Y than must be given up given the relative prices of X and Y. The marginal utility per dollar spent on X exceeds the marginal utility per dollar spent on Y The consumer is willing to give up more Y for an additional unt of X than must be given up given the relative prices of X and YThe table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. Quantity TUx MUx MUx/Px TUy MUy MUy/Py 0 0 0 0 0 0 0 1 50 50 16.67 75 75 25.00 2 88 38 12.67 117 42 14.00 3 121 33 11.00 153 36 12.00 4 150 29 9.67 181 28 9.33 5 175 25 8.33 206 25 8.33 6 196 21 7.00 225 19 6.33 7 214 18 6.00 243 18 6.00 8 229 15 5.00 260 17 5.67 9 241 12 4.00 276 16 5.33 d.How much total utility will James experience by buying the utility-maximizing combination? e.Suppose the price of good Y increases to $6. How many units of X and Y will he buy to maximize his utility now?
- What is the total utility at 4 units and the marginal utility when Jenna goes from consuming three units to four units pears? Quantity Marginal Utility 1 35 2 25 3 15 4 10 5 0 6 -5 Group of answer choices Total utility = 85 ; Marginal Utility = 10 Total utility = 85 ; Marginal Utility = 15 Total utility = 75 ; Marginal Utility = 10Answer orangehelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working