Diogo has a utility function:U = 100x09z0.1The price of X is px = $5, the price of Z is p, = $14, and his income is s800.%3DWhat is Diogo's optimal bundle? (round your answer to one decimal place)X, =units%3DZ, =units

Diogo has a utility function: U = 100x0.9z0.1 The price of X is px = $5, the price of Z is p, = $14, and his income is $800. %3D What is Diogo's optimal bundle? (round your answer to one decimal place) X, = units Zo =units

Diogo has a utility function: U = 100x0.9z0.1 The price of X is px = $5, the price of Z is p, = $14, and his income is $800. %3D What is Diogo's optimal bundle? (round your answer to one decimal place) X, = units Zo =units

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 13PAE

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9 of 15 Laura has an income of 100 and she has to spend it to buy daisies (x₁) and daffodils (x2). Her preferences are represented by a Cobb Douglas utility function u(x1,x2)= x1x2. If daisies are twice as expensive as the daffodils, what would her optimal bundle be? O Buy only daffodils O Buy only daisies O Buy twice as many daffodils as daisies O Buy twice as many daisies as daffodils O Buy same amount of daisies and daffodils O No answer.
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A consumer buys Bread (B) and Milk (M) each week at prices of Rs. 10 and Rs. 8 respectively. Suppose that the consumer's current consumption of Bread and Milk is giving him MUBrend = 80 and MUMia = 70. Is the consumer buying the utility-maximizing combination of bread and milk? If not, how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain.
5. Julio who consumes two goods Food (F) and clothing (C) has a utility function given by U(F,C)= sqrt(F)C. The price of food is $3 and the price of clothing is $5 and Julio's weekly budget for food and clothing is $100. a. What is Julio's MRSFe (marginal rate of substiution of food for clothing) when utility is maximized? Explain. b. If Julio is at point where MRSFC= 1, where is that point relative to the utility maximzing bundle (show this in a diagram)? c. Can Julio change his bundle so as to increase his satisfaction and if so in what way? Explain fully Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Dalal consumes only two goods for lunch and dinner: risotto (R) and lamb machboos (M). Dalal’s utility function isgiven by U(R,M) = R + 4M. Suppose that a risotto dish costs 3 KD and that a dish of lamb machboos costs 6 KD.Dalal has 300 KD a month to spend on her lunch and dinner meals. d. What would Dalal’s optimal basket be given that her utility will equal the level found in part (c)? e. How much would the basket found in part (d) cost? f. How much cash does Jassem need to offer to fulfill his promise?Although both of Jassem’s offers will make Dalal just as happy, their costs will not be the same. g. What is the cheaper option for Jassem: offering a 60 KD risotto gift card or offering the amount of cash foundin part (f) part c solution, available utility is R+4M = 20+200 = 220 utils.
PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Dalal consumes only two goods for lunch and dinner: risotto (R) and lamb machboos (M). Dalal’s utility function isgiven by U(R,M) = R + 4M. Suppose that a risotto dish costs 3 KD and that a dish of lamb machboos costs 6 KD.Dalal has 300 KD a month to spend on her lunch and dinner meals. a. How many risotto and lamb machboos dishes will Dalal buy each month if she maximizes utility?Dalal’s brother, Jassem, wants to make her happier and is considering two options: giving her a 60 KD gift card that can only be spent on risotto from one of the Italian restaurants or giving her some cash money.If Jassem chooses to give Dalal the 60 KD risotto gift card:b. How many risotto meals can Dalal add to her optimal basket? c. What utility level will Dalal get given her income and the risotto gift card?Suppose that Jassem instead chooses the second option and promises Dalal to raise her income to the level thatensures making her as happy as the first…
Jessica has an income of $216 and she is buying apple cider and books. Apple cider is $8 per unit and books are $24 each. The following table shows her marginal utility per dollar spent. Which of the bundles will maximize her total utility? Enter the letter of the bundle only. Bundle Q(A) MU/$(A) Q(B) MU/$(B) 9. 6.13 5.13 B. 3. 8. 5.38 5.21 6. 7 4.63 5.29 6. 3.88 5.38 12 3.13 5.46 4. 2.38 5.54 G. 18 1.63 5.63 H. 21 0.88 5.71 24 0.13 5.79 27 0. Answer 15
Alex wants to maximize his utility. At his current level of consumption, Alex's marginal utility from an aditional cup of coffe is 15 utils, and his marginal utility from an additional can of soda is 11 utils. If the price of a cup of coffee is $3 and the price of a can of soda is 32. Alex Should:
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4. Use the following information to calculate Wren's optimal bundle and his resulting utility: IC:U(x,y) = x0.5, 0.5 Px = 1, Py = 4, m = 48
8. Jane lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her utility function is U 3SC (where S is the number of soft drinks per week and C the number of bags of chips per week), so her marginal utility of S is 3C and her marginal utility of C is 3S. Soft drinks are priced at £0.50 each, chips £0.25 per bag. a. Write an expression for Jane's marginal rate of substitution between soft drinks and chips. b. Use the expression generated in part (a) to determine Jane's optimal mix of soft drinks and chips. c. If Jane has £5.00 per week to spend on chips and soft drinks, how many of each should she purchase per week?