sub= 24 help urgent EconomicsConsider a utility function u(x, y) = x", where 0 < a < 1 and 0 0.1. Derive the marginal utility of x and the marginal utility of y and state whether or not theassumption that more is better is satisfied for both goods.2. Does the marginal utility of x diminish, remain constant, or increase as the consumer buysmore x? What does it mean in words?3. What is MRSy?4. Suppose a, b = . What is MRS at (x, y) = (3, 12) and what does it mean in words? Whatis MRS at (x, y) = (12, 3) and what does it mean in words?5. Suppose a, b =Draw two indifference curves of the utility function. To get full credit,draw one with the level of utility 2 and the other with the level of utility 3. For eachindifference curve, label at least one point on the curve.6. Draw tangent lines at (x, y) = (4, 16) and (x, y) = (16, 4) in the same graph and label theslopes you solved in MRS(4, 16) and MRS(16, 4).

(1) u = (1/2)xayb Differentiate u w.r.t x to get MUx MUx = du / dx => MUx = (a/2)xa-1yb…

Consider a utility function u(x, y) = *y, where 0< a < 1 and 0 < b < 1. Also a x, y > 0. %3D 1. Derive the marginal utility of x and the marginal utility of y and state whether or no assumption that more is better is satisfied for both goods. 2. Does the marginal utility of x diminish, remain constant, or increase as the consume more x? What does it mean in words? 3. What is MRSy? 4. Suppose a, b = .What is MRS at (x, y) = (3, 12) and what does it mean in wor is MRS at (x, y) = (12, 3) and what does it mean in words? 5. Suppose a, b =. Draw two indifference curves of the utility function. To get full c draw one with the level of utility 2 and the other with the level of utility 3. For each indifference curve, label at least one point on the curve. %3D %3D %3D 6. Draw tangent lines at (x, y) = (4, 16) and (x, y) = (16, 4) in the same graph and I

Consider a utility function u(x, y) = *y, where 0< a < 1 and 0 < b < 1. Also a x, y > 0. %3D 1. Derive the marginal utility of x and the marginal utility of y and state whether or no assumption that more is better is satisfied for both goods. 2. Does the marginal utility of x diminish, remain constant, or increase as the consume more x? What does it mean in words? 3. What is MRSy? 4. Suppose a, b = .What is MRS at (x, y) = (3, 12) and what does it mean in wor is MRS at (x, y) = (12, 3) and what does it mean in words? 5. Suppose a, b =. Draw two indifference curves of the utility function. To get full c draw one with the level of utility 2 and the other with the level of utility 3. For each indifference curve, label at least one point on the curve. %3D %3D %3D 6. Draw tangent lines at (x, y) = (4, 16) and (x, y) = (16, 4) in the same graph and I

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 1E

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