Kim spends all her weekly income of R200 on two goods, X and Y. The prices of the two goods are R5 per unit for X and R2 per unit for Y. She has a utility function expressed as: U(X, Y) = 5XY Express the budget equation mathematically. Determine the utility-maximising bundle of X and Y. Calculate the total utility that will be generated per unit of time for this individual.

Q: Mort consumes only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages…

A: Utility maximization refers to the process where individuals aim to allocate their resources in a…

Q: In the diagram on the right the consumer's original budget line is L₁, and the consumer buys the…

A: The consumer equilibrium refers to situation where consumer maximises his utility at given level of…

Q: An individual has utility function for X and Y of the form U(X,Y)= X + Y and Py expenditure function…

A: The expenditure function of a consumer gives the minimum amount of money required to spend to…

Q: Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for $2 a…

A: Marginal Utility refers to the additional satisfaction or happiness a consumer recieves from…

Q: Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he…

A: Utility function is the function that shows or represents the level of satisfaction or degree of…

Q: Jana is interested in only two goods, X and Y, which she views as "perfect complements". Write down…

A: In order to derive the preference:-  4.5 x = 3.5 y  U( x , y ) = min { 4.5 x , 3.5 y }

Q: Calculate the MRS for the following utility function U (x1, X2) = 2x + x; + e³x1 (in text mode, the…

A: Utility function : U(x1 , x2 ) = 2x12 + x22 + e3x1 Marginal Rate of substitution refers to the rate…

Q: Consider the following utility function.   U=U(X,Y)=X0.2Y0.8   Find the marginal utilities.…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

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: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: Greg has the following utility function: u = x5x27. He has an income of $64.00, and he faces these…

A: Given : U ( X1 , X2) X1 = X0.53 X2 = X0.47 I   =  64 P1 = 3 P2 = 4

Q: A consumer derives all of his utility from a single good; he devotes his entire income $10 to…

A: The concept of Equivalent Variation (EV) measures the change in income required to maintain a…

Q: 1. Suppose that a consumer with the utility function U = X0.25 y0.75 chooses a consumption bundle…

A:

Q: To maximize utility, Connie should buy pounds of meat and potatoes. (Enter your responses rounded to…

A: Utility maximisation is the process of maximising the utility of the consumer subject to the budget…

Q: Determine the monotonicity and convexity of these preferences and briefly define what they mean.…

A: Utility refers to the level of satisfaction a consumer obtains from the consumption of goods or…

Q: Utility is given by the function U(x,y) = x0(y + 4)0³. a. Calculate the marginal utility of x in…

A: Marginal utility is the addition to the total utility when one more unit is purchased.  Marginal…

Q: Suppose that a consumer with the utility function U = X0.75 Y0.25 choses a bundle where X=10 and…

A: Marginal utility per dollar is the ratio of marginal utility to the price of the good. It increases…

Q: Jennifer buys both turkey (x) and cheese (y) for her sandwiches. Her preferences over these two…

A: Utility Function: U(x, y) = min [x, 2.5 y] Lets assume , Price of good x is p1 Price of good y is p2…

Q: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: Anna has an income of 1000 euros and utility function U(x,y)=x²y³. The prices of the two goods are…

A: Budget Constraint:A budget constraint represents the limit on the consumption of goods and services…

Q: 7. MRS and utility maximization Cho lives in Miami and loves to eat desserts. She spends her entire…

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

Q: 8. A consumer bas utility function u(z, y) = VIy, for two goods, X and Y, where c is some positive…

A:

Q: Suppose that you observe that total utility rises as more of an item is consumed You can say for…

A: Utility is the wants satisfying power of a product. Total utility is the total amount of…