Tom is vegetarian and always eats a salad (s) with 2 glasses of green juice (g). His utility for the two goods is therefore\[ u(s, g) = \min \left\{ s, \frac{1}{2}g \right\} \] Tom’s expenditure function is given as follows:(a) $ E = \bar{U} \, (p_s + 2p_g) $(b) $ E = \bar{U} \, (p_s + p_g) $(c) $ E = \frac{1}{2} \bar{U} \, (p_s + p_g) $(d) $ E = \frac{1}{2} \bar{U} \, p_s p_g $(e) $ E = \bar{U} \, (p_s + p_g) $Where:- $ E $ represents the expenditure.- $ \bar{U} $ is a constant representing utility.- $ p_s $ and $ p_g $ are the prices of two different goods.

Utility is satisfaction that is derived from the consumption of goods or services. Complement goods…

Answered: m is vegetarian and always eat a salad…

m is vegetarian and always eat a salad (s) with 2 glasses of green juice (g). His lity for the two goods is therefore 1 u(s, g) = min{s, -9}

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please answer this question with steps thank you
What is the maximum price Sam would be willing to pay to buy a coffee mug? What is the minimum price Sam would be willing to accept to sell a coffee mug he already owned?
urgent
Rhea is determining how many gallons of milk (M) and loaves of bread (B) to purchase. Use the information in italics to answer the bolded question below: Rhea's marginal utility function for milk: MUN • Rhea's marginal utility function for bread: M = 0.5M-2 MUB = 0.5MB-1/2 • Rhea has $60 to spend on bread and milk. • The price of milk (Pm) is $3/gallon of milk. • The price of bread (Pb) is $1/loaf of bread. • For the sake of computation, assume that bread is the horizontal axis good (i.e., good X) and milk is the vertical axis good (i.e., good Y). When you set up the optimal budget decision rule for Rhea's consumer problem, which of the following statements best describes how much she will buy of both goods at her consumer equilibrium? O For each gallon of milk, Rhea will buy 1/3 loaf of bread. O For each gallon of milk, Rhea will buy 3 loaves of bread. For each gallon of milk, Rhea will buy 1 loaf of bread. O For each gallon of milk, Rhea will buy 6 loaves of bread.
Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.
Suppose Carlos has to choose between purchasing jewelry and water. Which of the following is the utility-maximizing rule that Carlos should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") O (MU of Water) x (Price of Water) = (MU of Jewelry) x (Price of Jewelry) O MU of Water = MU of Jewelry MU of Jewelry %3D Price of Water MU of Water Price of Jewelry MU of Jewelry Price of Jewelry MU of Water %3D Price of Water Since water costs little and jewelry is expensive, it must follow that when people choose their optimal quantities of water and jewelry to purchase, the marginal utility they receive from the last piece of jewelry they buy is than the marginal utility they receive from the last gallon of water they buy.
A consumer has an annual budget constraint for two goods: “housing sq. ft." and "$ for everything else". Draw the budget constraint for this consumer if income (v) = $50,000 and price per sq. ft. of housing, ph, is S200. Please be sure to fully label your graph (i.e., slope, intercept, etc.). Note: plot "housing sq. ft." on the x-axis. How would this consumer's budget line change if she received a $5,000 raise and the price of housing increased to $250? Include a graph with your answer. How did the economic rate of substitution (ERS) between housing and $ for everything else change when pa changed? Please interpret the ERS both before and after the price change.
Suppose that Aji Fatou always consumes 2 spoons of sugar (X1)with each cup of coffee (X2). If the price of sugar is p1 per spoonful and the price of coffee is p2 per cup and Aji Fatou has m dollars to spend on coffee and sugar. What is Aji Fatou's Utility Functions? O a. U(X1,X2) = Min{2X1,X2). b. U(X1,X2) = Min{X1,2X2). O. U(X1 X2) =2X1 + X2 O d. U(X1 X2) =X1 + 2X2
Fast pls solve this above question correctly in 6 min i will give u like for sure
1. Jan has the following utility function for broccoli: U(B) = 54B - 0.5B³ a) What is Jan's marginal utility function?
A consumer has a budget of $3000 in a given period, and wishes to buy two goods, X and Y, so as to maximise his utility. The price of good X is $5 and the price of good Y is $2, and his MRS is given by the formula 2Y/X. How many units of good X will he buy in that period?
Define the Marginal Rate of Substitution between two goods (X and Y).If a consumer’s preferences are given by U(X,Y) = X1/4Y 3/4, compute the consumer’s marginalrate of substitution as a function of X and Y. Calculate the MRS if the consumer has chosen toconsumer 12 units of X and 30 units of Y.