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f we observe a consumer choosing (x1, x2) when (y1, y2) is available one time, are we justified in concluding that (x1, x2) (y1, y2)?
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- can you please help me with questions c, d, e and f? Thanks!. On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according to thefunctionU (c, b) = 20c - c2 +18b- 3b2.How many cigars and glasses of brandy does he consume during an evening? (Cost is no objectto J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum of glasses ofbrandy and cigars consumed to 5. How many glasses of brandy and cigars will he consumeunder these circumstances?There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. x₁ measures the number of episodes watched of Show 1 and x₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 5 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (x₁, x₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (x₁, x₂)=( d) Evaluate…
- There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. x₁ measures the number of episodes watched of Show 1 and x2 measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 5 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary.Philip sells homegrown heirloom tomatoes at a local farmer's market. Suppose for the past several weeks, Philip has been selling his tomatoes for $2.25 per pound and he has been selling 90 pounds of tomatoes each week. Suppose this week he drops the price of the tomatoes to $1.75 per pound and as a result of the price drop, he is stilling 110 pounds of tomatoes. (a) Using the midpoint rule, what is the percentage change in the quantity of tomatoes sold from the drop in price? % (Enter your answer as a percentage with no decimals rounded to the nearest whole percent (i.e. 33% or -10%)) 4 (b) Using he midpoint rule, what is the percentage change in the price of Philip's tomatoes? % (Enter your answer as a percentage with no decimals rounded to the nearest whole percent (i.e. 33% or -10%)) (c) Using the midpoint rule, what is the price elasticity of demand for Philips, tomatoes? (Enter yourSolve it correctly please. I will rate accordingly l
- A consumer buys (x1, X2 , X3 ) at price vector (P,, P2 , P3). We make three observations of his behavior: At (P,P,,P;) = (1,1,2), the consumer chooses (x,,x,,x3) = (5,19,9) At (P, P,,P,) = (1,1,1), the consumer chooses (x,,x,, x3 ) = (12,12,12) At (P, P,,P,) = (1, 2,1) , the consumer chooses (x,,x,,x; ) = (27,11,1) %3D %3D Does the consumer's behavior satisfy WARP? What about SARP?Exercise 1 A consumer's utility function is u(x, y) = x²y³ and the budget constraint is prx +Pyy ≤ w, where the parameters pr, Py and we are all strictly positive. (a) Solve the consumer's utility maximization problem. (b) Use the envelope theorem to estimate the change in the indirect utility function (i.e., the problem's value function) when the price py is changed to py + e, with e > 0.Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK's demand for bricks is. The research department has estimated that ConstrUK's preferences over bricks (x) and cement (y) can be described by the utility function wwwww U(x,y) xb/10 y1-b/10 , where b=8, and where x and y are measured in bags. Example: if b=4, then U(x,y) x*/10 yl-4/10 = x²/5 y3/5. %3D The price for one bag of cement is equal to £1. It is estimated that ConstrUK's budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve.
- If utility is given by U(x, y) = x2 + y2 and px = 2, py = 3, I = 50, this person will choose: a. (10, 10). b. (15, 6.67). c. (25, 0). d. (0, 50/3).If the utility function (U) between food (F) and clothing (C) can be represented as U = F*C, then which combination of food and clothing will a rational consumer choose? a. (F, C) = (9, 25) O b. (F, C) = (25, 4) O c. (F, C) = (4, 16) d. (F, C) = (4, 25)which of the two is Pareto optimal V= In x1 + 2 In x2 u= 2 In x1+ In x2 (1,2) (2,1) (2,1) (1,2) (1.5, 1.5) (1.5, 1.5) (3,0) (0,3)