Let qA be the quantity of apples and go the quantity of oranges. A consumer's utility is described by the function u(qA,90)= 39A +590 For this consumer, the marginal utilities are MUA= Moreover, the marginal rate of substitution is MRSA,O= ✓and MUO= PA If this consumer is currently consuming 2 apples and 4 oranges, then we know Po =

Let qA be the quantity of apples and go the quantity of oranges. A consumer's utility is described by the function u(qA,90)= 39A +590 For this consumer, the marginal utilities are MUA= Moreover, the marginal rate of substitution is MRSA,O= ✓and MUO= PA If this consumer is currently consuming 2 apples and 4 oranges, then we know Po =

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 3SQP

See similar textbooks

Similar questions

QUESTION 1 Let qa be the quantity of apples and qo the quantity of oranges. A consumer's utility is described by the function u(qA.90)= 39A + 590 This consumer curently consumes 2 apples and 4 oranges. For this consumer, the marginal utilities are MUA= and MUO= Moreover, the marginal rate of substitution is MRSA O=
Please no written by hand and no emage Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils.a) Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b) Calculate the optimal weekly consumption bundle for this consumer.c) Does the consumer view C and S as complements or substitutes?
Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils. a)Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b)Calculate the optimal weekly consumption bundle for this consumer. c)Does the consumer view C and S as complements or substitutes?
Total utility O diminished as the quantity of a good increases increases as long as more goods are acquired increases as long as marginal utility increases O increases as long as marginal utility is positive diminishes as consumption of some good rises
Assume Pat spends all of her allowance to purchase 4 apples and 4 candy bars. Pat's marginal utility of the fourth apple is 20 utils, and her marginal utility of the fourth candy bar is 40 utils. If an apple costs $1.00 and a candy bar $0.50, to maximize utility Pat should(A) purchase more apples and more candy bars(B) maintain the current purchase of 4 apples and 4 candy bars(C) purchase more apples and fewer candy bars(D) purchase fewer apples and more candy bars(E) purchase fewer apples and fewer candy bars
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
4. Jerry lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her utility function is U = 60SC (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 Sis 60C and her marginal utility of C is 60S. Soft drinks are priced at 10birr each, chips 5birr per bag. A. Write the expression for Jerry's marginal rate of substitution between soft drink and chips. B. Use the expression generated in part (A) to determine Jerry's optimal mix of soft drink and chips C. If Jerry has 100 birr per week to spend on chips and soft drink how many of each she she purchase per week? 5. Given the long run production function is Q = 200LK3 calculate A. AP and AP. B. MPL and MPK C. MRTSLK D. elasticity of substitution 6. Given the total cost function Q = Q - 4Q? + 14Q +60 A. Specify average variable, marginal cost and average total cost function B. Is average variable cost is reached at its minimum point at higher or…
Please correct answer
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?
Q.7 A consumer's utility function is given by the expression: & = (0.6.x"s + 9.47"s}. Determine the marginal utility functions for each commodity. Does marginal utility decrease when consumption increases? Assuming that the price of good X is Rs 15 and the price of Y is Rs 6, write the equation of the budget line and plot it when income is Rs 450. What is its slope? What does it indicate? Calculate the marginal rate of substitution of Y for X. and interpret its economic meaning. Write the equation showing consumer's equilibrium condition. Obtain the equilibrium values of X and Y. Find the expressions for change in MUx due to increase in Y and change in MUy due to increase in X.
2
just d please thank you