Given the following utility function and budget contraints: U(X,Y)= XY I= Px (X) + Py(Y) and given that: Py = 4, Px=6 and 1 = 360 Fill in the blanks in the following table (round to two decimal places): Part 1: What is the Value of Qx? Number

Given the following utility function and budget contraints: U(X,Y)= XY I= Px (X) + Py(Y) and given that: Py = 4, Px=6 and 1 = 360 Fill in the blanks in the following table (round to two decimal places): Part 1: What is the Value of Qx? Number

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

See similar textbooks

Related questions

Q: Suppose we have the following utility function: U(x,y)=x^0.33 y^0.67 1) What is the Marginal utility…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Kamau's utility function for watching football (F) and drinking a soda (S) is given by the function…

A: Consumer surplus is the benefit that the customer receives from purchasing the commodity at a price…

Q: Suppose Ed's utility from the consumption of martinis (m) is proportional to the number he drinks:…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What is the logarithmic transform of the utility function U=xα1xβ2xγ3 given the budget constraint…

A: We have given the utility function. U = x1α x2β x3γ To find the logarithmic transform of the utility…

Q: QUESTION 1 For the utility function U = Qx0.43Qy(1-0.43) and the budget 102 = 13Qx + 11Qy find the…

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

Q: s utility function is U=X+ 25XZ + Z. Let the price of good X be px, the price of good Z be…

A: Given utility function- U= X+25XZ+Z

Q: Milo spends £27 on stamps (S) and maple candy (C). His preferences for these goods are given by the…

A: Given , Milo income = 27 Utility function : U = min { S , 3C } Price of Stamps = 1.1 Price of…

Q: For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y)…

A: We know, MRS = MUx / MUy Given (x, y) = (2,3)

Q: a) Write down Milo's budget equation and draw the corresponding budget line. Clearly label the axes…

A: Consumer M spends his income on stamps and maple candy.Symbolically,Income = I = 27Stamps = SMaple…

Q: 12. If the income (1) = 150, Px= 5 and Find the values of X and Y that maximize utility it utility…

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

Q: ?? =

A: Given : u=x1/2y1/2 M=120 Px=4 Py=1

Q: Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces…

Q: Write down the equation for the budget constraint and then graph it for .. Px = $100 Py = $25…

A: Budget Constraint is an equation that depicts the limitations of the consumers. With the given…

Q: Huang is determining how much Coke and Pepsi he will buy. Use the information polded question below.…

A: Substitute goods are used for each other. The corner solution will exist in the market if goods are…

Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…

A: Answer: Given, Utility function: U=3PC Price of pop PP=$1Price of Candy PC=$0.5Total income M=$10…

Q: Kate’s utility function includes coffee (c) and sugar (s). She only consumes coffee and sugar…

A: When a consumer consume a good, they drive utility from it. The amount of change in utility gain…

Q: Questions 1. Will's utility from vacations (91) and meals (92) is given by the function U(V, M) = 91…

A: Step 1:Step 2:

Q: What is the logarithmic transform of the utility function U=xα1xβ2xγ3U=x1αx2βx3γ given the budget…

A: Given, Logarithmic transform of the utility function : U=xα1xβ2xγ3U=x1αx2βx3γBudget Constraint :…

Q: QUESTION 1 For the utility function U = Qx0.50Qy(1-0.50) and the budget 122 = 8Qx + 14Qy find the…

A: The utility function is given as The budget is given as The price of X is increased by a factor of…

Q: • The price of Coke (Pc) is $0.50/can. • The price of Pepsi (Pp) is $1.00/can. Based on his budget…

A: The utility preferences are perfect substitutes MRS = (dU/dC)/ (dU/dP) MRS = 2/3 relative price…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 133 = 8Qx + 10Qy find the CHANGE in…

A: The utility function: Budget constraint: Comparing the budget constraint with the general equation…

Q: Rui's utility function is U=X+4XZ+Z. Let the price of good X be px, the price of good Z be…

A: Hicksian and Marshallian demand are two contrasting ways of looking at consumer behaviour. Hicksian…

Q: Question 1: Find the expenditure function for a consumer with each of the following utility…

A: We have to find the expenditure function for a consumer.

Q: Given the following utility functions for Consumer A and Consumer B and their budget contraints: UA…

A: There are two individuals : A & B Utility function of A : Ua = X0.5Y0.5Utility function of B…

Q: Jackie has a budget of $36 per month to spend on snacks. She can spend this budget on bags of potato…

A: We are going to use Consumer choice theory to answer this question.

Q: If we have the utility function, U(x)=(x−7)^2, and we know that there is an indifference set around…

A: The utility function estimates the government assistance or fulfillment of a shopper as a function…

Q: 1 Consider a consumer who consumes only two goods, z1 and z2. His utility function is u (1, 2) = In…

A: Utility function is given as:- U(z1,z2) = lnz1+z2 Price of z1 = $2 Price of z2 = $4 Income = 100

Q: Question 2 David spends his budget on chocolate and chip. His utility function is given by ?(?1,?2)=…

A: We are given: # Utility function : U(x1 , x2) = 2x1x2 Where x1 : number of chocolates he…

Question

Given the following utility function and budget contraints:
U(X,Y)= XY
I= Px (X) + Py(Y)
and given that: Py = 4, Px=6 and I = 360
Fill in the blanks in the following table (round to two decimal places):
Part 1:
Part 2:
Part 3:
What is the Value of Qx? Number
What is the Value of Qy? Number
What is the Optimal level of utility? Number

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the utility

VIEW

Step 2: Calculate the optimal quantities

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The question is in the attached image. Thank you!
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Supposethat John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?
5
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke? *use tables and/or graphs if possible, please original work
Only typed answer
3. Finding the optimal combination of two goods - $2. Suppose that Larry buys Larry enjoys consuming both cheese and fruit. Each pound of cheese costs Pc = $1, and each pound of fruit costs PF 300 pounds of cheese and 200 pounds of fruit per year. The following graphs show his marginal utility curves for cheese and fruit. At his current consumption level, Larry's marginal utility from consuming the last pound of cheese he bought is MUC S 30 utils per pound, and his marginal utility from consuming the last pound of fruit he bought is MUF = 30 utils per pound. 60 40 30 IL 20 10 400 500 600 50 40 A 30 B C D 20 10 0 0 100 Is Larry currently maximizing his utility? Combination 200 300 CHEESE (Pounds per year) 300, 30 (Pounds per Year) 200 400 300 No; he could buy less cheese and more fruit, not spend any more money, and be better off. O No; he likes fruit and cheese more than other goods, so he should buy more of both. O No; he could buy more cheese and less fruit, not spend any more money,…
If something has negative marginal utility, what happens to your total utilitywhen you consume it?
I need help checkin my own answers to this homework question as im not sure of my own answers. The info for the question is attached the question: How much X and Y should the consumer purchase in order to maximize her utility? i got x =4.5 and y =18. is that correct?
please explain the marginal utility and when exactly to use it ?
8 Do not Copy paste ans
A consumer buys Bread (B) and Milk (M) each week at price of 20 and 16 respectively. Suppose that the consumer's current consumption of Bread and Milk is giving him MUBread = 80 and MUMilk = 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.
1. An individual's budget Suppose Darnell has a weekly budget of $32 to spend on ranch dressing and spinach. Ranch dressing is priced at $4 per bottle, and spinach is priced at $2 per container. If Darnell spends his entire $32 on ranch dressing, he can buy 16 containers of spinach. 8 bottles of ranch dressing. If he spends his entire $32 on spinach, he can buy Use the blue line (circle symbol) to plot Darnell's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of ranch dressing and spinach that are affordable for Darnell. Finally, place the black point (plus symbol) on the point on Darnell's budget constraint that corresponds to a scenario in which Darnell spends $16 on each good. Note: Dashed drop lines will automatically extend to both axes.