Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2} Consider Bob’s preferences represented by the utility function in Question 1. Which of the following is correct? (A) Bob’s preferences are not homothetic. (B) Bob’s preferences are not transitive. (C) Bob’s preferences are not convex. (D) A typical indifference curve for Bob’s preferences is a straight line. (E) None of the above

Q: Suppose a consumer's utility function is u(x, y) = ;V+), with x and y the 6. amounts of two goods…

A: U(x,y) = 12x+12y2Px = 1Py = 2M = 300

Q: Let there be two goods and suppose John has preferences over R20 which can be represented by the…

A: Given utility function U=min{X1,2X2} The given utility function represents the Leontief utility…

Q: Suppose a consumer seeks to maximize the utility function U (x, y) = (x+2) (y + 1), where and y…

A: Given  Consumer utility function: U(x,y)=x+2y+1            ...(1) Price of goods x and y are px and…

Q: Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y).…

A: Utility function: U = Min (2X, Y) --------------------- Budget constraint: Price of good X (Px) = $2…

Q: Suppose Kayla has preferences over cakes (c) and pints of ice cream (i) that can be characterized…

A: To determine how many pints of ice cream Kayla would be willing to give you in exchange for one…

Q: Lara has preferences represented by the utility function U(x, y)  2x  2y. She consumes 10 units of…

A: here we calculate value of Y which are as follow-

Q: Tom is a consumer with preferences over two goods represented by the quasilinear utility function…

A: Utility function : U (x, y ) =  2x0.5 +  y Income = 120 Px = 2 Py = 4Hence , Budget Constraint  : 2x…

Q: Suppose Pacó has an annual entertainment budget of I. He spends his entertainment budget on only 2…

A: Utility Function is given as U(v,m) = 4v1/2m. Price of Video games: Pv Price of Movies: Pm

Q: Suppose a consumer consumes two goods, x and y and has utility function U(x, y) = min{3x, 2y}. She…

A: Given information: U= min{3x,2y} -----------> Utility function The price of x is $35 => Px =…

Q: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…

A: Given  Pizza (P) and Hamburgers (H) are perfect substitute  and utility from 2 slices of Pizza =…

Q: Problem 2: Satiation point(s) There two goods, candy and soda, available in arbitrary non-negative…

A: The indifference curve shows the various combinations of two goods that leave the consumer equally…

Q: A consumer derives utility from good A and B according to the following utility function: U(A, B) =…

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

Q: ility representations = of the pairs of utility functions over X R2, state whether they erences. If…

A:

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: (B) Same setup as (A) with u(x, y) = ax + y and ap<1. What is the demand for X? (a) x(p, m) = m (b)…

A: Given  The utility function: u(x,y)=αx+y          ....(1) Here αp&lt;1  The price of good x is 1 and…

Q: Rafe is optimally choosing to consume 6 apples and 3 bananas. The prices of apples and bananas are…

A: As the first order condition for the utility maximization problem is :  MRS = Pa / Pb  As, Pa = 7…

Q: .5 .5 Suppose you have the utility function U(x, y) = X +y. The price of good x is $10 and the price…

A:

Q: Find the optimal bundle using the following utility functions and budget constraints.

A: 1)U(x1 , x2) = 3x1 + 2x2.   Budget constraint :- 6x1 + 2x2 = 24  Here the optimal bundle are…

Q: Problem 1. Lolita. Lolita, an intelligent and charming Holstein cow, consumes only two goods, cow…

A: A budget line, also known as a budget constraint or price line, represents the various combinations…

Q: A consumer’s preferences over consumption bundles (x1,x2) are strictly monotonic and strictly…

A: Consumer preferences are characterized as the abstract (individual) tastes, as estimated by utility,…

Q: An agent has utility u(x1, x2) = (x-11+x-12)-1for goods x1 and x2. The prices of the goods are p1…

A: Given: An agent has a utility of: U(x1,x2) = (x1-1 + x2-1)-1 The prices of goods are = p1 and p2…

Q: Question 1 Consider an economy with two goods t = 1,2. Whenever an individual consumes ₁ units of…

A: As given utility function is u(x1,x2) = αlnx1 +lnx2 Where α&gt;0

Q: 2. Cynthia has preferences represented by the utility function u(x) = x² + x2 (a) Calculate…

A: A utility function is a mathematical representation of a consumer's preferences over different…

Q: A consumer derives his utility from two goods, the amounts of which are x and y, according to the…

A: Given  Utility function U=2lnx+lny         .......(1) Px=$2 and Py=$4 Consumer income =$48 We have…

Q: Consider the following utility function: u(x1,x2) = x1 + x2. (A): i) Restate the consumer problem.…

A: * Hi there , as there are multiple questions posted . Following our guidelines we can only solve the…

Q: (4) Consider a Cobb-Douglas utility function U(1,2) = ria, where U is the utility level, x, and 2…

A: The utility maximization problem is to choose the amounts of commodities x1 and x2 to maximize the…

Q: For the next two questions, consider a consumer with utility function U(x1, X2) = x1+X1X2+X2 who…

A:

Q: Joe Bob from Workout Problem 4.12 has a cousin Don who consumes goods 1 and 2. Don thinks that 3…

A: For Don, 3 units of good 1 is always the perfect substitute for 2 units of good 2. This implies that…

Q: Suppose a consumer has the following utility function: U(x1,x2) = alnx1 + (1-a)lnx2. The price of…

A: We have  Ux1, x2=alnx1+1-alnx2 When a= 1/2 or a=0.5 Ux1, x2=0.5lnx1+0.5lnx2             ............…

Q: Question 7: Logan has preferences over olives (x₁) and ice creams (x₂). He prefers to eat them…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: (A) Suppose an individual who derives utility u(x, y) from consuming a units of the good X and y…

A:

Q: Suppose that there are two goods (X and Y ). The price of X is $2 per unit, and the price of Y is $1…

A: Given: Px =2Py = 1UA(X, Y) = X0.5Y0.5UB(X, Y)= X0.8Y0.2MA = 100MB = 300

Q: 1. Tom (T) and Jerry (J) have identical incomes I. Their preferences can be described by the utility…

A: Utility refers to the satisfaction or happiness that a consumer get from the consumption of goods or…

Q: Romania has preferences represented by the utility function U(x, y) 2x and 2y. She consumes 10 units…

A:

Q: Abby likes tangerines and oranges. For every 4 tangerines, Abby is equally happy to consume 2…

A: We need to find combinations of x and y (number of tangerines and oranges, respectively) that give…

Q: 4B. Which one(s) of the following functions v(x, y) = 2x°y³ – 100, w(x, y) = 3(¤ +y) + 120, t(x, y)…

A: Ordinal Utility functions are those which represent the order/ ranking of consumption bundles based…

Q: Kai spends his income on lime (L) and ginger water (G). Lime is priced at $2, while ginger water…

A: PL = 2 , PG=1 and I = 30

Q: (a) A good is a luxury if it has a budget elasticity larger than 1, (i.e., good k is a luxury if εk…

A: Let the 2 goods be k and j Budget constraint :- pk(k) + pj (j) = m  share of good k in total…