Guerdon always puts half a sliced banana, q, , on his bowl of cereal, q, The two14goods are perfect complements. What is his utility function? Derive his demandcurve for bananas graphically and mathematically.12-10-e,Guerdon's utility function (as a function of q, and q2) is6-VA U= min/2q1.92}4-O B. U=q, +92-2-0+OC. U=29, + q92-10 12 14 16 18 20622BananasO D. U=0.5q1 + q2-OE. U=q, xq2-5.00-4.50-Guerdon's demand function for bananas (as a function of the price of bananas,P1. the price of a bowl of cereal, p2, and income, Y) is4,00-3.50-91 =(p1 + 2p2)(Properly format your expression using the tools in theE 3.00palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can becreated with the_ character.)2.50-* 2.00-P.1.50-1.00-0.50-0.00+10 12 14Bananastv80DIDDF1F3F4F5F6F7F8F10@%23$&1347QWEYUSFH.JくCVMoptioncommandcommandopticーの* COCereal (bowls)p. S per bananaB* *NA

Perfect complements have L shaped indifference curve. Their utility function is a min function as…

Answered: Guerdon always puts half a sliced…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Find the marginal rate of substitution given the following utility functions for x and y: U(x) = 2xy U(y) = 3x1/3,2/3 O x1/3 / yA/3 O 213 x213y1/3 y2/3 / x1/3 'yA/3 /x1/3
ECON Questions 5, 6, 7, and 8 How to solve and answer these economics questions showed in the screenshot?
Which of the following is true about utility? O Utility same for all the consumers O Utlity is subjective Utility for a good is constant O Utlity is same as usefulness
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing Multiple Choice 3 units of J and 7 units of K. 5 units of J and 5 units of K. 4 units of J and 5 units of K. 6 units of J and 3 units of K.
Consider the two questions about utility. The table refers to the first question only. Tod loves to travel, and he takes several river cruises per year. The table contains information about the utility Tod gets from the river cruises. Number of river cruises Total utility Marginal utility 0 0 1 12 12 2 20 8 3 25 5 From this information, it can be concluded that the number of river cruises Tod takes is indeterminable without knowing Tod’s income or the price of the cruises. that total utility is maximized when Tod takes one river cruise. that Tod will take two river cruises. that Tod will take three river cruises. Suppose that Jim has $4 to spend on a snack and that the only thing available is tea and scones. Jim’s marginal utility of the first cup of tea is 30 and his marginal utility of the second cup of tea is 20. Each cup of tea costs $1. Jim’s marginal utility of the first scone is 80 and his marginal utility of the second scone is 60. Each scone costs…
1 Consider a consumer who consumes only two goods, 21 and z2. His utility function is u (21, 22) = In z1 + 2. where In represents the natural logarithm. 1.a Derive the consumer's MRS of good 1 for good 2 using calculus to calculate his marginal utility from z and his marginal utility from z2. 1.b If the price of z1 is $2 per unit and the price of z2 is $4 per unit, and the consumer's income is $100, What is the equation of this consumer's budget line? 1.c What are the optimal consumption choices, z and z5, for this consumer? Show your work.
X2 Phil has preferences over olives (x₁) and ice creams (x₂) with a utility function, u(x₁, x₂)= x₁0.5+ x₂0.5. Suppose his income is $16 and the price of olives is $1 and the price of ice creams is $1, too. Which of the following is TRUE? O The utility level when he spends all of his income on good 1 is 8. O The optimal bundle Phil will choose to consume is (6,10). O The utility level at a bundle (1,16) is 11. None of the above. The optimal bundle Phil will choose to consume is (8,8).

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