10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X + 2Y. For this utility function the MRS A) is always X*Y B) is always constant C) is always X/Y D) is always X+Y E) is always X-Y.

Q: Suppose we have the following utility function: U(x,y)=x^0.33 y^0.67 1) What is the Marginal utility…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Suppose Ed's utility from the consumption of martinis (m) is proportional to the number he drinks:…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 3. A consumer's utility function is given by U(x, y) = min{x,y}. Initially px prices are pz = 1 and…

A: Compensating variation measures the change in income or wealth that would be necessary to keep an…

Q: Consider a utility function given by u(x, y) = (ax² + by). It is called CES utility function.

A: Given utility function   u(x,y)=axρ+byρ1ρGiven utility function is known as CES production…

Q: a) What is the utility maximizing choice of food and clothing?  b) How would the utility maximizing…

A: For a consumer the utility function for two goods, food (F) and clothing (C) is given as: U(F, C) =…

Q: Imagine you have a movie streaming platform that offers new movies at the time of release. Your…

A: Marginal utility is the additional utility derived from consuming an additional unit of the good.

Q: It is common for supermarkets to carry both generic (store-label) and brand-name (producer-label)…

A:

Q: PROBLEM (2) Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is…

A: Problem (2): (a)The microeconomic theory of utility maximization states how a consumer chooses his…

Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…

A: Utility theory is a positive theory. that looks to make sense of the people's noticed way of…

Q: Prove that if u is a reasonable utility function, then u(w) — u(w − h) > u(w+h)- u(w) for any w > 0…

A: A reasonable utility function assigns numerical values to outcomes based on personal preferences,…

Q: Adrienne consumes three goods, x,y, and z. Her consumption preference is given by the utility…

A: U(x,y,z) = x17y27z47Px = 1Py = 10Pz = 10

Q: For each of the following utility functions get the marginal utility of consumption of each of the…

A: This can be defined as a concept that shows that when a purchaser purchases an extra unit of any…

Q: Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3…

A: The utility in terms of economics can be defined as the amount of satisfaction or happiness that a…

Q: When marginal utility is decreasing but positive, total utility is a increasing at a decreasing…

A: Marginal utility is the additional utility that is derived by consuming an additional unit of the…

Q: Consider the following utility function for goods x1 and x2:   u(x1,x2)=(x1+x2)2    What type of…

A: Utility function is a representation of individuals preferences for goods and services.

Q: a good is normal, then an increase in the price of the good will lead to which of the following to…

A: We are approached to consider the effect of a price increase on a normal good within a two-good…

Q: Using the homogeneity of indirect utility, which of the following cannot be an indirect utility…

A: The homogeneity of the indirect utility function states that if both income and prices are…

Q: Calculate the marginal rate of substitution (MRS12) for the following utility function: U(q1, 42) =…

A: Here, utility function is given as: U(q1, q2)=4q1+√q2 To find: MRS(1,2) at the bundle (13, 2)

Q: Question 1 Consider a consumer with a utility function of U(X1,X2,... , Xm) = ,az > 0, i = 1,2,3, ..…

A: Hello. Since you have posted multiple parts of the question and not specified which part of the…

Q: 19) when total utility, U(X) is maximized, marginal utility, MUx is  a)constant b)rising c)maximized…

A: Total utility and marginal utility:When a consumer goes on to consume the units of good continuously…

Q: 2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and Y is…

A:

Q: c) The consumers utility function is given by U(XY)-4X+3Y and the given bundle is X-3 and Y - 12. i)…

A:

Q: 1. Suppose you are considering to make a decent holiday dinner. In this year, to be creative, you…

A: The cardinal approach to studying consumer behavior uses the law of equi-marginal utility. This law…

Q: 6. Consider a consumer with the utility function u(x,, x2) = In(x,) + x, and the budget constraint…

A: Demand function is a mathematical function showing relationship between the quantity demanded of a…

Q: 4.4 (0) Phil Rupp's utility function is U (x, y) = max{x, 2y}. (a) On the graph below, use blue ink…

A: 4.4(0) a) The graph is shown at the end of the solution. x=10 would be parallel to the x-axis and…