2. Draw a budget constraint, indifference curves, and the consumer's optimal point for pizza and Pepsi. Show what happens to the budget constraint and the consumer's optimum when the price of pizza increases.

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A: The utility maximizing level is given as MUx/Px= MUy/Py Good X   Good Y   Quantity MUx/Px…

Q: 2. Suppose a consumer has a fixed budget of $200, and she spends it all on two goods, x1 and x2. The…

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A: Utility function : U =  b *p Where , b = beer , p = pizzaPrice of beer =  2 Price of Pizza = 10…

Q: Question 4 A consumer has income of $15,000. Pillows costs $35 per pillow, and soda costs $70 per…

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Q: Consumer Theory Daniel spends all his money on only two goods: chocolates (good 1) and milkshakes…

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Q: 34. Refer to Figure#6. If the consumer was initially at point A in the figure, a movement from point…

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Q: A consumer has a budget of $72 to consume X and Y, and Px-$2 and Py-$2. Suppose the consumer's…

A: Given information U=X0.5Y0.5 Px=2 Py=2 M=72 Budget constraint M=Px*X+py*Y

Q: . Explain utility and its connection to consumer behavior

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…

A: An indifference curve is a graphic representation of a collection of products that give consumers…

Q: 2. Bobby, the brain, Heena His utility function is U = FC. The consumes fifty units of each. a. Draw…

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Q: MCQ3. The slope of the budget constraint is equal to the : A. Marginal rate of substitution B. Ratio…

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Q: The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of…

A: Budget constraint refers to limitations that individual or firm faces when trying to allocate their…

Q: 1. Construct budget constraints and indifference curves for Pizza (X-axis) and Pepsi (Y-axis).…

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Q: Part 4 5 6 needed David’s utility function for good X and Y is given by U (x, y) = x2 y3 . Where Px,…

A: The graphical representation of the utility function is known as the indifference curve.  The…

Q: The graph represents a budget constraint showing the purchases of Good X and Good Y. If the price of…

A: Budget constraint refers to the graphical representation of all possible combinations of two goods…

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