Q4) You are given the following marginal utilities of goods X and Y obtained by a consumer. Given that price of X = Rs. 2.5, price of Y = Rs. 1 and income = Rs. 11, find out the optimal combination of goods No. of unit consumed of a commodity Marginal utilities of X Marginal utilities of Y 1 15 10 2 12.5 9 3 10 8 4 7.5 7 5 5 6 6 2.5 5 7 0.5 4

Q: b) Given that U = (X,X2), show that the following: %3D If utility function is additive then at most…

A: Utility Function The utility function tells us the satisfaction of using one good for other goods.…

Q: 8/ A consumer has the following utility function: u (x, y) = 6xy + 10 a) Determine the marginal…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Find the marginal utility oI X1, the marginal ty o and the marginal rate of substitution for the…

A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…

Q: 3. Suppose you consume two goods, whose prices are given by p₁ and p2, and your income is m. Solve…

A: The objective of the question is to find the demand functions for two goods given the prices of the…

Q: 6. Suppose that a fast-food junkie derives utility from three goods - softdrinks (x), 0.5 0.5…

A: Given, Utility Function: U(x,y,z)=x0.5y0.5(1+z)0.5 px=0.25py=1pz=2 Income (M) = 2

Q: A consumer of two goods, good 1 and 2, has a utility function U (X1, X2)= X1 0,6. X2 0,4, where x,…

A: Given information X1^0.6X2^0.4 P1=5 P2=3 M=150 Now price of X1 decreases  New P1=2

Q: Newspaper vending machines are designed so that once you have paid for one paper, you have access to…

A: In economics, the term 'utility' is used to describe an individual's satisfaction from consuming or…

Q: 5) for y. U (x, y) = x0.5 + y Pxx+Pyy = I Use the above utility function and budget line to find the…

A: The notion of utility maximization and budget restrictions is important to consumer theory, which…

Q: Use the following table showing the marginal utility schedules for product X and product Y for an…

A: “Since you have posted multiple questions, we will provide the solution only to the specified…

Q: marginal utility for custard (U.). What is Amelia's marginal rate of substitution (MRS)? Give a…

A: Different utility levels of consumers are taken to be independent. This means that utility obtained…

Q: Consider an individual who consumes two goods, x and y. Her utility function is U(x, y) = x¹/³y2/3…

A: Utility function : U(x , y )  = x1/3 y2/3Price of x = Price of y = 1 Income = 50 Gift certificate =…

Q: What is the value of Consumer A's marginal rate of substitution (MRS) of concert tickets for popcorn…

A: The utility is the total satisfaction that the consumer derives from the consumption of the…

Q: A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility yielded by…

A: Marginal Utility (t) = Total utility (t) - Total Utility (t-1) Marginal utility per $ (t) = Marginal…

Q: 2. John likes 3 sugar packets (S) in his coffee (C). Assume that Ps is the price of sugar, Pc is the…

A: We are going to use concepts such as Utility maximization to answer this question.

Q: sts 2 dollars per unit and good y costs 1 dollars per unit. If she is endowed with 4 units of y, how…

A: In economic matters, the utility function estimates the government assistance or fulfillment of a…

Q: Describe how rational consumers maximize utility by comparing the marginal utility-to-price ratios…

A: Utility is defining as the level of satisfaction receives while consuming the goods and marginal…

Q: 5) Below is John's indifference map for juice and snacks. Also shown are three budget lines…

A: A graphical depiction that shows various combinations of two goods (here, juice and snacks) that a…

Q: Consider a consumer with the utility function U (x, y) = x" y where x is the quantity of good X and…

A: Optimal consumption bundle is where MUx / MUy = Px / Py Where MUx = Marginal utility from good x MUy…

Q: c) The consumers utility function is given by U(X,Y)= 5X + 3Y and the given bundle is X = 6 and Y =…

A: Given:The consumer's utility function is U(X,Y)=5X+3Y. The given bundle is X=6 and Y=10.To…

Q: The marginal rate of substitution between two goods always equals the O price of one good divided by…

A: ‘Utility’ refers to the satisfaction, which a consumer derives from consuming a good. Marginal…

Q: Consider the following utility function that expresses the preferences of any consumer for good x…

A: Utility function is a mathematical representation utilized in economics to quantify the satisfaction…

Q: 5) Given the data in the below table, income of $13, a price of $1 for a gallon of gasoline and…

A: Utility is the satisfaction that a consumer obtains after consumption of goods and service. It is…

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>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: Question 2 (Choice). Suppose a consumer's utility function is given by: U(xi, x:) = min{9xi, x;} The…

A: Answer a) Fixed proportion of utility function U(x1, x2) = min{9x1, x2} For such functions, 9x1 = x2…

Q: [Lecture on indirect utility function] 1. (a) What is the indirect function? What does it show? (b)…

A: The utility function of the individual for the goods shows the preference of the consumer. It can be…

Q: 5) Which of the following statements is not true about utility? We can compare utility across…

A: Consumer Decision-Making: Microeconomics places great significance on consumer decision-making.…

Q: 8) A consumer has to choose the optimal amount of cheese and crackers to purchase. He or she has…

A: Budget line refers to a graphical representation of a budget constraint, depicting the maximum…

Q: Suppose that the utility function U(c, s) = c +2s3 describes Molly's preferences over two goods:…

A: Marginal utility is a fundamental concept in economics that refers to the additional satisfaction or…