not use ai please don't Page3C8. (37 points total) Suppose Maxine has the following utility function U = 0.9*XY (MUX0.6XMUYAnswer the following questions and, as always, show your work.0.3Y==andx(a) (6 points) On a regular day, Maxine earns $270. She currently faces the following prices Px = $9 andPy $1. What is her optimal consumption bundle of X and Y?(b) (2 points) How much does she spend per day on X and Y?

The problem provides Maxine's utility function U=0.9X1/3Y2/3, with marginal utility functions…

Answered: Page 3 C 8. (37 points total) Suppose…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 13PAE

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The relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of Cookies 1 2 3 4 S 6 Marginal Utility 20 16 12 8 4 0 George receives 2 units of utility from the last dollar spent on each of the other goods he consumes. If cookies cost $4 per bag, how many bags of cookies will he consume per month if he maximizes utility? Add your answer Integer, decimal, or E notation allowed Question 10 If the utility function for the consumer is: U= min{10 x1, 50 x2} P₁= 4, P₂-6 and 1-2,000 What is the optimal amount of x₁? 10 Points
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PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Dalal consumes only two goods for lunch and dinner: risotto (R) and lamb machboos (M). Dalal’s utility function isgiven by U(R,M) = R + 4M. Suppose that a risotto dish costs 3 KD and that a dish of lamb machboos costs 6 KD.Dalal has 300 KD a month to spend on her lunch and dinner meals. d. What would Dalal’s optimal basket be given that her utility will equal the level found in part (c)? e. How much would the basket found in part (d) cost? f. How much cash does Jassem need to offer to fulfill his promise?Although both of Jassem’s offers will make Dalal just as happy, their costs will not be the same. g. What is the cheaper option for Jassem: offering a 60 KD risotto gift card or offering the amount of cash foundin part (f) part c solution, available utility is R+4M = 20+200 = 220 utils.
PLEASE HELP ME ANSWER IT AS FAST AS YOU CAN Dalal consumes only two goods for lunch and dinner: risotto (R) and lamb machboos (M). Dalal’s utility function isgiven by U(R,M) = R + 4M. Suppose that a risotto dish costs 3 KD and that a dish of lamb machboos costs 6 KD.Dalal has 300 KD a month to spend on her lunch and dinner meals. a. How many risotto and lamb machboos dishes will Dalal buy each month if she maximizes utility?Dalal’s brother, Jassem, wants to make her happier and is considering two options: giving her a 60 KD gift card that can only be spent on risotto from one of the Italian restaurants or giving her some cash money.If Jassem chooses to give Dalal the 60 KD risotto gift card:b. How many risotto meals can Dalal add to her optimal basket? c. What utility level will Dalal get given her income and the risotto gift card?Suppose that Jassem instead chooses the second option and promises Dalal to raise her income to the level thatensures making her as happy as the first…
Nadia likes spare ribs, R, and Fried chicken, C. Her utility function is U(R,C) = 10R2C Her marginal utilities are MUR=20RC ? and MUC=10R2 Her weekly income is $90, which she spends on only ribs and chicken. A) If she pays $10 for a slab of ribs and $5 for a chicken, what is her optimal consumption bundle? Show that her budget line, indifference curve, and optimal bundle, e1, in a diagram. B) Suppose the price of chicken double s to $10. How does her optimal consumption of chicken and ribs change? Show her new budget line and optimal bundle, e2, in a diagram.
3. Suppose Mary enjoys Pepsi and Coke according to the functionU(P;C) = 4C + 5P. What does her utility function say about her MRS of Coke for Pepsi? What do her indi§erence curves look like? What type of goods are Pepsi and Coke for Mary? If Pepsi and Coke each cost $1 and Mary has $20 to spend on these products, how many units of each product should she buy in order to maximize her utility? Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pepsi change if the price of Coke decreases to 50 cents. 4. Vera is an impoverished graduate student who has only $100 a month to spend on food. She has read in a government publication that she can assure an adequate diet by eating only peanut butter and carrots in the Öxed ratio of 2 pounds of peanut butter to 1 pound of carrots, so she decides to limit her diet to that regime. a) If peanut butter costs $4 per pound and carrots cost $2 per…
Problem 4.2 Nadia likes spare ribs, R, and Fried chicken, C. Her utility function is U(R,C)=10R^2 C Her marginal utilities are 〖MU〗_R=20RC and 〖MU〗_C=10R^2 Her weekly income is $90, which she spends on only ribs and chicken. a If she pays $10 for a slab of ribs and $5 for a chicken, what is her optimal consumption bundle? Show that her budget line, indifference curve, and optimal bundle, e1, in a diagram. b Suppose the price of chicken doubles to $10. How does her optimal consumption of chicken and ribs change? Show her new budget line and optimal bundle, e2, in a diagram. Hint: To get the right indifference curve into your picture. First, solve for the optimal R* and C* in the problem. Then substitute these values into the original utility function, V = U(R*, C*). This tells you the level of utility at the optimum. Set Utility equal to this number and solve for C in the utility function. So, solve V =…

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