A consumer preferences u(x, y) = x1/3 + y1/3has m = 120 and pays px = 4, py = 4. Next month Py = 1. She will increase her purchases of good y by units.

Q: Explain the relationship between the budget constraint and indifference curve at consumer optimum.

A: Consumer optimum is the point of consumer's equilibrium where they get maximum level of…

Q: Along U1 you are indifferent between any of the combinations of burgers and soft drinks so you get…

A: This can be described as the concept that provides the graphical representation of the combination…

Q: Increase in the price of insulin doesn't effect its Qd whereas a slight increase in price of perfume…

A: There are different types of economic goods: Normal good, necessity goo,  Luxury good, and inferior…

Q: 5. Consumer value can be determined by how consumer utility compares between different items.…

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: Total utility Declines with increased consumption of a commodity. 5 Increases initially and achieves…

A: The property of a good that enables it to satisfy human wants is called utility. As individuals…

Q: 6. Consumer's surplus is the highest in the case c (A) Necessities (B) Comforts (C) Luxuries

A: Consumer surplus is gradually an essential concept in economics, and it is defined as the difference…

Q: Faisal has a budget of SR24 to spend on two fruits: Apples and bananas. The price of apple is SR3.00…

A: A budget line represents the combination of two products that a consumer can afford given the costs…

Q: Consider a consumer whose preferences are represented by u(x₁, x₂) = √x₂ + x1, and who has budget…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: Quèstion 16 Which of the following is NOT the goal of the consumer? O maximize utility O be on the…

A: Consumer would want to maximize utility and satisfaction. Consumer would also want to be on the…

Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…

A: Utility is maximised at a point where marginal rate of substitution is equal to the price ratio of…

Q: Consider the utility function U(r, g) = r+ Iny. (a) Find the marginal rate of substitution, MRS of…

A: The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to…

Q: - (Multi-Variable Constrained Optimization goods, z and y. The price of good z is $2 and the price…

A: Price of good z = $2Price of good y = $1 Total income = 24 Utility function = Min{8z,2Y}

Q: PROBLEM (2) A consumer has utility u(x,y) = -- over bundles of food (x) and clothing (y). This time,…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: At point C, how many units of Good X are bought? Good X 8 (?X, ?Y) C(?X, ?Y A (55X, ?Y) udet…

A: A budget line is the graphical representation of different combinations of two goods that can be…

Q: Assume that a person's vitility function is given TU = 2x¹¹2²¹/2 Assume by the following function.…

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

Q: Marissa has $30 to spend on beer and hamburgers. Beers are $3/beer and hamburgers are $5/hamburger.…

A: Budget constraint: - it is a graphical representation of different bundles of goods that a consumer…

Q: a. What combination of A and B will Mr. Chen purchase? A = units units B = b. Does your answer meet…

A: In case of two goods, let's say good A and good B. Consumer maximizes utility at the following…

Q: Xavier has preferences between food eaten today and food eaten tomorrow of the form. U(today,…

A: Utility maximization problem : With the given prices and the income, a consumer chooses his…

Q: If Ginna spends her entire budget, she could buy a chosen set of groceries and also buy 10…

A: Given,  Ginna's budget is £150Her preferences are either groceries (G) or notebooks (N)Utility…

Q: Graph the following data Quantity marginal utility 1                   153 2                    112…

A: Marginal utility is the additional utility derived from consuming one extra unit of the output. The…

Q: Please, I need answer about question d) I need graphic about question a) Determine and GRAPH…

A: Engel Curve is the graph between demand of good and income of the consumer

Q: Quèstion 7 When total utility begins to decline marginal utility will be positive but it will…

A: The relationship between TU and can be summarised as follows :

Q: 3) For Nour doughnuts and muffins are perfect substitutes. Doughnuts are £4 a box and muffins are £3…

A: Dear student, You have asked multiple questions in a single post. I am answering question number 3…

Q: Economics 2a-c answer ++++rating A consumer is initially at point A on her original budget…

A: Budget (B) constraint (C) is the quantity (Q) of the goods that the consumer (c) can purchase with…

Q: a. Fill in the third column showing the marginal utility he gets from each additional scoop. Use a…

A: ANSWER   Marginal Utility  of the last scoop eaten  is

Q: f the budget line rotates from blue to red: Good A 200A, 08 (100A, O8) (DA, SO Good O The monetary…

A: In financial aspects, a budget requirement addresses every one of the blends of labor and products…

Q: 10. Suppose tangerines are an inferior good. This means that if your income tangerines. decreases,…

A: Inferior goods are those goods whose demand decrease as the income of people rises and also the…

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: There ore two difarnt goods. (0 Budget Line (", 0) Whot can we say about consumer's optimal bundle?

A: In a market, when talking about consumer's welfare it can be said that an individual will always try…

Q: Multiple Cholce prices of Cand D cannot be determined. price of C Is $5 and the price of D is $10…

A: Budget line: - it is the graphical representation of different combinations of two goods that a…

Q: In this question use 'well-behaved' indifference curves. (a) Draw an 'optimal solution'. (b) The…

A: The indifference Curve is the curve that shows the levels of satisfaction or happiness that a…

Q: A consumer has a utility function such that the marginal utility for good x is given by MUx-(2y/(3x)…

A: Here, the marginal utility of X is given 2y/3x and marginal utility of Y is given as 1/y.

Q: Explain how a consumer budget and product price changes impact the budget line by drawing…

A: The budget line explains the combination of products to be selected till the last money of budget is…

Q: MRS=-20 along Ray 1 , MRS=-15 along Ray 2  Draw this consumer’s budget constraint, BAB, and…

A: please find the graph below.

Q: At the current combination of X and Y the consumer's MU-7 and MU,-4. If P,=3 and P,-2, is the…

A: The utility function refers to all those commodity bundles that derive the same amount of utility…

Q: 7. U(x, y) = xy. a. What is the optimal bundle of x and y? Depict this graphically and budget line…

A: Given Utility function: U(x,y)=x0.5y0.5        ... (1) Budget equation:400=10x+20y             ...…

Q: 2. (nts) Mary has the utility function u(x,y) = Inx + x². Are her preferences strongly convex?

A:

Q: PROBLEM (1) Suppose a consumer has just enough money to afford the bundle of 3 apples and 2 oranges,…

A: Utility is the want satisfying power of any commodity. Utility is studied in both concepts,…

Q: A consumer's budget is 137. A unit of good x costs 3 and a unit of good y costs 4. If the consumer…

A: Given: Consumer budget=137cost of good x=3cost of good y=4unit of good y purchased by consumer=3

Q: Explain the relationship between the budget constraint and indifference curve at consumer optimum

A: A budget line represents the configurations of two goods that a buyer can consume provided a budget…

Q: 07 Assumption on which indifference curve is based: (a) Marginal rate of substitution is falling.…

A: # The correct answer is (D)