5. Two primary inputs to a college degree are coffee (x) and notepads (y). The price of a cup of coffee is $5, the price of a notepad is $10, and your budget is $30. Assume the utility over bundles of these two products is u(x, y) = 6x + 3y. (a) What does this utility function imply about your preferences over coffee and notepads? (b) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.) Assume the utility over bundles of these two products is u(x, y) = min{6x, y}. (c) What does this utility function imply about your preferences over coffee and notepads? (d) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.) Assume that utility over bundles of these two products is U(x, y) = x₁y₁ (e) What does this utility function imply about your preferences over coffee and notepads? (f) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.)
5. Two primary inputs to a college degree are coffee (x) and notepads (y). The price of a cup of coffee is $5, the price of a notepad is $10, and your budget is $30. Assume the utility over bundles of these two products is u(x, y) = 6x + 3y. (a) What does this utility function imply about your preferences over coffee and notepads? (b) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.) Assume the utility over bundles of these two products is u(x, y) = min{6x, y}. (c) What does this utility function imply about your preferences over coffee and notepads? (d) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.) Assume that utility over bundles of these two products is U(x, y) = x₁y₁ (e) What does this utility function imply about your preferences over coffee and notepads? (f) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do not need to solve for the optimal number of products.)
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
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Transcribed Image Text:5. Two primary inputs to a college degree are coffee (x) and notepads (y). The price of a cup of
coffee is $5, the price of a notepad is $10, and your budget is $30.
Assume the utility over bundles of these two products is u(x, y) = 6x + 3y.
(a) What does this utility function imply about your preferences over coffee and notepads?
(b) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do
not need to solve for the optimal number of products.)
Assume the utility over bundles of these two products is u(x, y) = min{6x, y}.
(c) What does this utility function imply about your preferences over coffee and notepads?
(d) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do
not need to solve for the optimal number of products.)
Assume that utility over bundles of these two products is U(x, y) = x₁y₁
(e) What does this utility function imply about your preferences over coffee and notepads?
(f) Draw a graph that illustrates the optimal number of coffees and notepads to buy. (You do
not need to solve for the optimal number of products.)
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