2. There are two goods: sushi and fried chicken. Let S represent weekly consumption of sushi and F represent weekly consumption of fried chicken. A unit of sushi contains 200 calories, while a unit of fried chicken contains 600 calories. For each of the following descriptions of a consumer's preference: (i) provide a utility function U(S, F) that is consistent with the information given (ii) draw an indifference curve map with S on the horizontal axis and F on the vertical axis. Draw small arrows on the graph to indicate the direction of the preferred bundles (iii) calculate the MRSSF consistent with the utility function you wrote down. Work with the following consumer's preferences: (a) Food is food. I do not care how I get my calories. The more calories I get, the happier I am. (b) I am on a strict diet. I like food but I just cannot consume more than 1800 calories a day. Any food in excess of this I just throw away (at no cost to me). I also like to keep a balanced diet: 2 units of sushi for each unit of fried chicken. (c) I like fried chicken but I don't care (one way or the other) about sushi. If I am served sushi, I just throw it away (at no cost to me). (d) I am very particular about what I eat. I always try to consume 20 units of sushi and 15 units of fried chicken a week. Any departure from this routine makes me unhappy. The greater the departure, the greater my unhappiness. (e) Ed likes variety and prefers to eat sushi and fried chicken together. (f) Mia dislikes variety on the plate; she likes meals that are as uniform as possible. (g) Rahul likes fried chicken but he hates sushi. He is not indifferent to sushi though. He dislikes sushi so eating it will strictly lower his utility. (h) Jim considers sushi and fried chicken to be perfect complements that he consumes in a one-to-one ratio. (i) Jim considers sushi and fried chicken to be perfect complements that he consumes in a one-to-five ratio (one S consumed with five F). (j) Jim considers sushi and fried chicken to be perfect substitutes that he is willing to trade three-for-one (three S for one F). (k) Jim doesn't care about the fried chicken (i.e., he only cares about sushi) unless he consumes at least 5 pieces of sushi. Once he has consumed 5 pieces of sushi, he considers sushi and fried chicken to be perfect complements that he consumes. in a one-to-one ratio.
2. There are two goods: sushi and fried chicken. Let S represent weekly consumption of sushi and F represent weekly consumption of fried chicken. A unit of sushi contains 200 calories, while a unit of fried chicken contains 600 calories. For each of the following descriptions of a consumer's preference: (i) provide a utility function U(S, F) that is consistent with the information given (ii) draw an indifference curve map with S on the horizontal axis and F on the vertical axis. Draw small arrows on the graph to indicate the direction of the preferred bundles (iii) calculate the MRSSF consistent with the utility function you wrote down. Work with the following consumer's preferences: (a) Food is food. I do not care how I get my calories. The more calories I get, the happier I am. (b) I am on a strict diet. I like food but I just cannot consume more than 1800 calories a day. Any food in excess of this I just throw away (at no cost to me). I also like to keep a balanced diet: 2 units of sushi for each unit of fried chicken. (c) I like fried chicken but I don't care (one way or the other) about sushi. If I am served sushi, I just throw it away (at no cost to me). (d) I am very particular about what I eat. I always try to consume 20 units of sushi and 15 units of fried chicken a week. Any departure from this routine makes me unhappy. The greater the departure, the greater my unhappiness. (e) Ed likes variety and prefers to eat sushi and fried chicken together. (f) Mia dislikes variety on the plate; she likes meals that are as uniform as possible. (g) Rahul likes fried chicken but he hates sushi. He is not indifferent to sushi though. He dislikes sushi so eating it will strictly lower his utility. (h) Jim considers sushi and fried chicken to be perfect complements that he consumes in a one-to-one ratio. (i) Jim considers sushi and fried chicken to be perfect complements that he consumes in a one-to-five ratio (one S consumed with five F). (j) Jim considers sushi and fried chicken to be perfect substitutes that he is willing to trade three-for-one (three S for one F). (k) Jim doesn't care about the fried chicken (i.e., he only cares about sushi) unless he consumes at least 5 pieces of sushi. Once he has consumed 5 pieces of sushi, he considers sushi and fried chicken to be perfect complements that he consumes. in a one-to-one ratio.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.2P
Related questions
Question
There are two goods: sushi and fried chicken. Let S represent weekly consumption of
sushi and F represent weekly consumption of fried chicken. A unit of sushi contains
200 calories, while a unit of fried chicken contains 600 calories.
For each of the following descriptions of a consumer's preference:
(i) provide a utility function U(S,F) that is consistent with the information given
(ii) draw an indifference curve map with S on the horizontal axis and F on the vertical
axis. Draw small arrows on the graph to indicate the direction of the preferred
bundles
(iii) calculate the MRSSF consistent with the utility function you wrote down.
Work with the following consumer's preferences:
(a) Food is food. I do not care how I get my calories. The more calories I get, the
happier I am. (b) I am on a strict diet. I like food but I just cannot consume more than 1800 calories
a day. Any food in excess of this I just throw away (at no cost to me). I also like
to keep a balanced diet: 2 units of sushi for each unit of fried chicken.
(c) I like fried chicken but I don't care (one way or the other) about sushi. If I am
served sushi, I just throw it away (at no cost to me).
(d) I am very particular about what I eat. I always try to consume 20 units of sushi
and 15 units of fried chicken a week. Any departure from this routine makes me
unhappy. The greater the departure, the greater my unhappiness.
(e) Ed likes variety and prefers to eat sushi and fried chicken together.
(f) Mia dislikes variety on the plate; she likes meals that are as uniform as possible.
(g) Rahul likes fried chicken but he hates sushi. He is not indifferent to sushi though.
He dislikes sushi so eating it will strictly lower his utility.
(h) Jim considers sushi and fried chicken to be perfect complements that he consumes
in a one-to-one ratio.
(i) Jim considers sushi and fried chicken to be perfect complements that he consumes
in a one-to-five ratio (one S consumed with five F ).
(j) Jim considers sushi and fried chicken to be perfect substitutes that he is willing
to trade three-for-one (three S for one F ).
(k) Jim doesn't care about the fried chicken (i.e., he only cares about sushi) unless
he consumes at least 5 pieces of sushi. Once he has consumed 5 pieces of sushi,
he considers sushi and fried chicken to be perfect complements that he consumes
in a one-to-one ratio.
Transcribed Image Text:2. There are two goods: sushi and fried chicken. Let S represent weekly consumption of
sushi and F represent weekly consumption of fried chicken. A unit of sushi contains
200 calories, while a unit of fried chicken contains 600 calories.
For each of the following descriptions of a consumer's preference:
(i) provide a utility function U(S, F) that is consistent with the information given
(ii) draw an indifference curve map with S on the horizontal axis and F on the vertical
axis. Draw small arrows on the graph to indicate the direction of the preferred
bundles
(iii) calculate the MRSSF consistent with the utility function you wrote down.
Work with the following consumer's preferences:
(a) Food is food. I do not care how I get my calories. The more calories I get, the
happier I am.
Transcribed Image Text:(b) I am on a strict diet. I like food but I just cannot consume more than 1800 calories
a day. Any food in excess of this I just throw away (at no cost to me). I also like
to keep a balanced diet: 2 units of sushi for each unit of fried chicken.
(c) I like fried chicken but I don't care (one way or the other) about sushi. If I am
served sushi, I just throw it away (at no cost to me).
(d) I am very particular about what I eat. I always try to consume 20 units of sushi
and 15 units of fried chicken a week. Any departure from this routine makes me
unhappy. The greater the departure, the greater my unhappiness.
(e) Ed likes variety and prefers to eat sushi and fried chicken together.
(f) Mia dislikes variety on the plate; she likes meals that are as uniform as possible.
(g) Rahul likes fried chicken but he hates sushi. He is not indifferent to sushi though.
He dislikes sushi so eating it will strictly lower his utility.
(h) Jim considers sushi and fried chicken to be perfect complements that he consumes
in a one-to-one ratio.
(i) Jim considers sushi and fried chicken to be perfect complements that he consumes
in a one-to-five ratio (one S consumed with five F).
(j) Jim considers sushi and fried chicken to be perfect substitutes that he is willing
to trade three-for-one (three S for one F).
(k) Jim doesn't care about the fried chicken (i.e., he only cares about sushi) unless
he consumes at least 5 pieces of sushi. Once he has consumed 5 pieces of sushi,
he considers sushi and fried chicken to be perfect complements that he consumes.
in a one-to-one ratio.
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