Diogo has a utility function,U(q,, 9,)=q,"02, 0.8where g, is chocolate candy and g, is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p4, is $0.50, and income, Y, is $100, what isDiogo's optimal bundle?The optimal value of good q, isunits. (Enter your response rounded to two decimal places,)étv15МacBook Air80escF5F6F7F8F2F3F4F1!@#32$&178.QETYtabASGaps lockNcontrolontioncommandの* 00っ!つエBDレ

Answered: Image /qna-images/answer/0c6ce33c-ff0a-4177-b681-4dd69098f17b.jpg

Answered: Diogo has a utility function, 0.2 0.8…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose Jasmine's utility function is U(x,y) = 15x - 5.3x² + y. Her income is 5.8 dollars, the price of good X is 2.3 dollars and the price of good Y is 6.5 dollars. How many units of good X will Jasmine buy to maximize her utility?
Question 2. You are given a utility function of three goods, K, L and M. U =U (K, L, M) = 10LogK + 5LogL + 2LogM %3D Where K, L and M are goods consumed. Furthermore, you are informed that the monthly salary is $500 and the prices per unit of K, L and M are $2, $10 and $4 respectively. Calculate the consumer's optimal bundle.
8
Let U(x, y) = 3x + y be the utility function of a consumer, whohas a budget of I. As a function of I, find the consumer’s Walrasian demand when the prices are px = py = 1. The price of good x increases to 2, find the new Walrasian demand for the new prices px = 2 and py = 1. Decompose this change into an income and a substitution effect.
3. The utility that Elena receives by consuming food F and clothing C is given by U(F, C) = FC + F. Food costs £1 per unit, and clothing costs £2 per unit. Elena's income is £22. MUF = C+1 and MUc = F. (i) Define the term Marginal Rate of Substitution (MRS) (ii) Find the utility maximizing values of C and F for the numerical values given above (Hint: You can assume interior solution). (iii) Now suppose that price of C and Elena's income remain unchanged at £2 per unit and £22, respectively, while the price of F varies. Find the equation of the demand for F as a function of the unit price of F (PF).
Diogo has a utility function, U(q, , 92) = q, 0²q, 0.8, where g, is chocolate candy and q, is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p1, is S$0.50, and income, Y, is $100, what is Diogo's optimal bundle? The optimal value of good q, is 9, = 40 units. (Enter your response rounded to two decimal places.) The optimal value of good q, is 92 = units. (Enter your response rounded to two decimal places.) aho shortcut étv 15 MacBook Air DII 08 F3 esc F5 F1 F2 ! @ # $ & 3 4 5 7 8 Q W R IT Y 一 tab A S F K caps lock C V M shift fn control option command しのつつエレ
Tristan has preferences for computers (C), and robots (R). Computers costs $750 a unit and robots costs $2000 a unit. Tristan has $15000 to spend on both goods. Give the equation for Tristan’s budget line. If robots are on the vertical axis, what is the slope of the budget line? Tristan is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximized. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
Q.7 A consumer's utility function is given by the expression: U = (0.6A"' + 0.47'"s} Determine the marginal utility functions for each commodity. Does marginal utility decrease when consumption increases? Assuming that the price of good X is Rs 15 and the price of Y is Rs 6, write the equation of the budget line and plot it when income is Rs 450. What is its slope? What does it indicate? Calculate the marginal rate of substitution of Y for X and interpret its economic meaning. Write the equation showing consumer's equilibrium condition. Obtain the equilibrium values of X and Y. Find the expressions for change in MUx due to increase in Y and change in MUy due to increase in X.
Sally consumes two goods, X and Y. Her utility function is given by the expression U = 2XY3. The current market price for X is $20, while the market price for Y is $10. Sally's current income is $500. a. Write the equation for Sally's budget constraint. What is the slope of her budget line? b. Determine the X,Y combination which maximizes Sally's utility, given her budget constraint.
Suppose Alex’s utility function for apple and orange is U(a,o) = a^2o. The price of an apple is $ 4, and the price of an orange is $ 2. Alex has $ 120 to spend on these two goods. – at the bundle (a,o) = (4,2) the marginal rate of substitution MRS(a,o) = ____ – Given prices, income, and utility function, the best affordable bundle for Alex is a∗ = __ and o∗ = __
The price of salad is ps = 10, the price of green juice is pg = 5, and Tom’s income is I = 100.
diogo has a utility function: u=100x^0.6z^0.4 the price of x is Px=12 and the price of z is Pz=4 and the income is 1000 what is diogos optimal bundle

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS