A consumer has the following utility function: U(X1,X2) = X1X2 + X1 + 2X2 Where X1 is her consumption of candies with a price of $2 and X2 is her consumption of notebooks with a price of $5. Her income is $51. Determine the number of candies and notebooks that will maximize the consumer’s utility.

Q: Suppose, a glass of lemonade (x) sell for 10 taka each and a cupcake (y) cost 60 taka. Total income…

A: U(X,Y) = X0.15Y0.85 where X is a glass of lemonade Y is cupcake Px is the price of a glass of…

Q: Mort consumes only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages…

A: Utility maximization refers to the process where individuals aim to allocate their resources in a…

Q: Suppose a consumer had a utility function given by: U = X²Y0.5. If the price of Good X (Px) is $3…

A: The utility function is given as The price of good X is $3.The price of good Y is $6. The budget for…

Q: A consumer has the following utility function: U(X,Y)= 400X2/5Y3/5 Suppose that the price of a spa…

A: To solve the above problem we construct Lagrangian in which Total cost function with constraint of…

Q: What type of function is the utility function expressed as u(x,y)=30lnx + y? Also, how would you go…

A: A utility function u (x, y) speaks to a customer's inclinations. That is, a utility function gives a…

Q: Felina prefers to spend her living allowance of $1500 on Mobile data and food. She prefers to pay…

A: The utility is the want satisfying power of the commodity. The budget line would be the total amount…

Q: Julio loves gardening. His favourite plants are tulips and hydrangeas. His utility function is '…

A: Given that: u(t, h) = t + 100h - h2 Constraint: 500 = 1(t) + 4(h)

Q: Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and…

A: Utility is maximized when marginal rate of substitution is equal to price ratio of two goods at the…

Q: An individual has utility function for X and Y of the form U(X,Y)= X + Y and Py expenditure function…

A: The expenditure function of a consumer gives the minimum amount of money required to spend to…

Q: Calculate for the equivalent variation (EV) for the price change.

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Q: Henry's utility function is u(x,y)=max{x+3y,3x+y}. (a) Suppose Henry's current consumption bundle is…

A: An indifference curve is a graphical representation used in microeconomics to illustrate a…

Q: A consumer has $100 and would like to purchase food (F) and gas (G). Suppose their utility is given…

A: Given: U ( F,G ) = F 0.8 G 0.2 M= PF x F + PG x G 100 = PF x F + PGx G MUF= o.8 ( G / F ) 0.2 MUG…

Q: A consumer consumes two agricultural products: Red Meat, and Tomatoes according to the following…

A: Let y  be the income of the consumer and let pR , pT be the prices of R and T. Then, given pR , pT ,…

Q: Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he…

A: Utility function is the function that shows or represents the level of satisfaction or degree of…

Q: then find out the quantity of x and y that will maximize utility.

A: Utility is defined as the total satisfaction that the consumer derives from consumption of the…

Q: A consumer has income of 15000. Masks costs $35 per mask, and sanitizers cost $70 per bottle.…

A: Budget constraint represents all combination of goods and services that consumer is able to buy if…

Q: According to the law of diminishing marginal utility: Omarginal utility falls with the extra…

A: The law of diminishing marginal utility depicts that the marginal utility derived from each extra…

Q: Your utility function is defined as U = x¹/3y2/3 where x and y are the only two goods you consume.…

A: Utility function represents the relationship between the utility and commodities that are consumed.

Q: Question 1 Consider a consumer with utility x₁2/3x21/3 and a budget constraint of 3x1+6x2 $100. What…

A: To maximize utility, we can use the Lagrangian method by setting up the following function:   L(x1,…

Q: Assume that a person's utility function is given by the following function: TU = 2X/2y/2 Assume also…

A: utility function is an important concept that measures preferences over a set of goods and services.…

Q: Greg has the following utility function:u=x63x937. He has an income of $66.00, and he faces these…

A: Compensating variation is the additional money that the consumer would need to reach its initial…

Q: Question 7 You are currently at the bundle (x, y) = (4, 2) with a utility function U = ln(x) +…

A: PLEASE FIND THE ANSWER BELOW.

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: maddy is a single mom with a weekly budget of $100. She can spend her weekly income on food and…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

Q: The consumer's total budget is S300. How many units of C and F will they consume?

A: Utility is the level of satisfaction that a consumer gets when consuming a good. Utility…

Q: A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good…

A: In utility maximization problem, a consumer attains his equilibrium or optimal consumption bundle…

Q: Anna has an income of 1000 euros and utility function U(x,y)=x²y³. The prices of the two goods are…

A: Budget Constraint:A budget constraint represents the limit on the consumption of goods and services…

Q: Question 2 (Choice). Suppose a consumer's utility function is given by: U(xi, x:) = min{9xi, x;} The…

A: Answer a) Fixed proportion of utility function U(x1, x2) = min{9x1, x2} For such functions, 9x1 = x2…

Q: Bridget's preferences for apples( X) and bananas(Y) can be represented by the utility function…

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Q: Zoe's utility function for brownies (X) and pizza (Y) is given by U(X,Y)= 8XY. Her monthly income is…

A: The utility function is the mathematical relationship between utility and bundles of commodities. It…

Q: A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of…

A: Answer: Given, Utility function: U=x0.25y0.75 Income M=£100Price of good xPx=£5Price of good yPy=£10…

Q: Suppose a consumer has the following utility function: U(x1,x2) = alnx1 + (1-a)lnx2. The price of…

A: We have  Ux1, x2=alnx1+1-alnx2 When a= 1/2 or a=0.5 Ux1, x2=0.5lnx1+0.5lnx2             ............…

Q: Sarah has a budget of 58. Her utility function if U(x,y) = x*y. %3D The price of good x is 1, the…

A: Given: Budget = M=58 Price of good x = 1 Price of good y = 8 Budget constraint equation: Pxx+Pyy=M…

Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…

A: Answer: Given, Utility function: U=3PC Price of pop PP=$1Price of Candy PC=$0.5Total income M=$10…

Q: please help

A: Use equilibrium condition to solve for x and y in terms of prices Px and Py.

Q: With use of graphical illustration discuss the optimal consumption bundle of an consumer

A: The graph that depicts different combinations or bundles of consumption for two commodities or goods…

Q: Consumer utility function is, U(XY) = X 75 Y 0.5.  The price of X good 2 AZN and Y good 4 AZN. If…

A: A consumer maximizes utility by consuming at the point where slope of indifference curve given by…

Q: Charlie has a utility function U(xA, xB) = xAxB, the price of apples is $1, and the price of bananas…

A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…

Q: Questions 1. Will's utility from vacations (91) and meals (92) is given by the function U(V, M) = 91…

A: Step 1:Step 2:

Q: Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His…

A: Compensating variation: When the price of a good changes and hence the consumption bundle, that new…

Q: An individual has the utility function U=4X 0.5Y 0.5 and can buy good X at £ 2 a unit and good Y at…

A: Utility function U = 4X0.5 Y0.5, PX = £2, PY = £8,  M  = £100 His budget line would be   XPx * YPY =…

Q: There are two goods, apples and bananas. The price of apples is PA = $2,and the price of bananas is…

A:

Q: U(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is…

A: