not use ai please 4. A consumer has the utility function u(x,y) = 0.2x0.5y0.5. The price of x is $px and the price of y is $10. Theconsumer's income is $400. The consumer's demand for good x is(a.) 100/2px(b.) 400/4px(c.) 250/2px(d.) 200/px

Analyzing the Consumer's Utility Function and DemandUnderstanding the Problem:We are given a…

Answered: 4. A consumer has the utility function…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 3SQ

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PROBLEM (2) A consumer has utility u(x,y) X y This time, I give you the marginal utilities (don't expect it in the midterm!) MUx = over bundles of food (x) and clothing (y). 1 and MUY x² (a) Does the consumer always prefer more food to less? (b) Does she exhibit diminishing marginal utility for food? (c) Does she exhibit diminishing MRS? (d) If she is indifferent between the bundles A = ( = = The more food she has, does she value food less relative to clothing? (That is, she is willing to give up fewer units of clothing for an additional unit of food) Circle: YES / NO Are her indifference curves bowed towards the origin? Circle: YES / NO ¹) and B = (¹,x), calculate x. , 3 4 1 y² (e) Does she value food -relative to clothing- the same at bundle A and B ? If not, at which bundle does she value food (relative to clothing) more? (f) Why should we not be worried about the fact that the utility function here always takes "negative values"? (g) (wait for the next class for us to cover utility…
qty per week Marginal Utility of songs Marginal Utility of Cookies 1 15 25 13 20 3 12 16 4 11 13 10 11 6. 9 10 7 8. 7 8. 6. 7 10 Above is the utility of Sara for song and cookie consumption. If the price of a song is $2 and the price of a cookie is $1, how many cookies and songs will sara consumer? Why?
Consumers maximízestheirutiliy when Ybren a. The marginal utility of each good is equal 6. The marginal utility per rial spent on each good is equal to zero across ll commodities c. The ratio of the prices facing any one consumer is equal to that facing any other consumer (d.) None of the above, PE = -0-8
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Total Utility 110 100 80 90 70 60 50 40 30 20 10 0 FIGURE 6-1 1 2 3 Unit of a Good . 4 P $ 5 6 Refer to Figure 6-1. The marginal utility of the second unit of the good consumed is
Consider an economy with two goods, consumption c and leisure 1, and a representative consumer. The consumer is endowed with 24 hours of time in a day. A consumer's daily leisure hours are equal to 1 = 24-h where h is the number of hours a day the consumer chooses to work. The price of consumption p is equal to 1 and the consumer's hourly wage is w. The consumer faces an ad valorem tax on their earnings of 7 percent. The con- sumer also receives some exogenous income Y that does not depend on how many hours she works (e.g. an inheritance). The consumer's preferences over consumption and hours of work can be represented by the utility function U(c, h) = c-3h¹+, where 3 > 0 and p > 0 are parameters. 1+p
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1. Carefully explain how consumers maximize utility of all the products they could possibly purchase.
Moe's income is $320 per week and he spends it on two goods, X and Y. Good X costs $8 and good Y costs $4 per unit. His utility function is U = 4.5XY. (a) Calculate Moe's utility-maximizing purchases of X and Y. (b) Calculate Moe's constrained utility- maximum if his income decreases by $2.00? (c) If the price of Y doubles, with no change in the price of X, by how much would his income have to increase to enable him to maintain his initial level of utility (as in part (a) above)?
Budget Constraints, Utility, Indifference Curves and Differences in Preferences: Type of Good? Income Elasticities? Wate 60 New budget constraint 60 40 40 (3, 28) X (7, 32) z(9, 26) 20 Y. (7, 12) 20 Original budget constraint (7,12) Original budget constraint 0. 10 15 0. 5. 10 15 Rental Movies Rental Movies (b) Natasha's reaction to more income (a) Manuel's reaction to more income YouTube Q 1:37/7:17 MacBook! sunBo Yogurts
c and d please

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4. A consumer has the utility function u(x,y) = 0.2x0.5y0.5. The price of x is $px and the price of y is $10. The consumer's income is $400. The consumer's demand for good x is (a.) 100/2px (b.) 400/4px (c.) 250/2px (d.) 200/px