Question 2     The rule for rational budget allocation by the consumer is that the marginal utility of each good:             purchased divided by its price must be equal.             must be zero.             must be infinite.             purchased multiplied by its price must be equal.             none of the suggested options

Q: 1. If an individual consumer faced the following utility function: U(X,Y) = 2X² + Y³, where X, Y >…

A: A utility function is a mathematical function that maps a bunch of goods or services to a number…

Q: Suppose a consumer has an income of $40, the price of A is $5, and the price of B is $4. Which of…

A: Here we calculate the combination of consumer budget line by using the given data and choose the…

Q: Which of the following goods is likely to provide both the largest total utility and the smallest…

A: Total utility refers to the total amount of satisfaction derived from consuming a good. Marginal…

Q: Total utility ______ at a ______ rate with every additional purchase of a good/service. Group of…

A: The question is asking about the behavior of total utility as more of a good or service is consumed.…

Q: Question 9     Consumer equilibrium on an indifference map is at:             Any point on the…

A: Ans in step 2

Q: Help!

A: Now, we will examine each component more thoroughly:  (a) Budget Constraint: The budget constraint…

Q: 2) A consumer’s utility function is: U(x,y) = sqrt(9xy). The price of each good is: (PX,PY) =…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: 3 Price elasticity and cross price elasticity of demand Suppose an individual who derives utility…

A: Here we are given the utility function and the budget of the consumer. The consumer chooses a…

Q: PROBLEM (7) A consumer with I dollars budget has the utility u(x,y) = x(y+1) over amounts of cake…

A: A person's preferences and level of satisfaction from consuming various products and services are…

Q: If a consumer is maximizing his/her utility for a given income,   the:   marginal utility for…

A: Utility means satisfaction. The total utility is the satisfaction generated from the consumption of…

Q: The marginal utility of the last unit of apples consumed is 12, and the marginal utility of the last…

A: Marginal utility is the utility derived by the consuming 1 additional unit of good.

Q: PROBLEM (5) A consumer with I dollars budget has the utility u(x,y) = x(y+1) over amounts of cake…

A: This can be described as the concept that shows the effect of change in the price of one good on the…

Q: Regard these commodities as providing equal satisfaction value             Buy these commodities in…

A: The literal meaning of utility is satisfaction. So utility means the satisfaction derived by a…

Q: Marginal utility is

A: Marginal utility refers to the additional satisfaction of the consumer while consuming one more unit…

Q: With a total budget available of $56.00, what does the utility-maximizing rule tell you the optimal…

A: We can easily see if we take 2 quantity each that is 2*14+2*14 = 28+28 = $56 which is within our…

Q: Marginal utility for a unit will be positive and decreasing if Total utility is increasing in a…

A: In the field of microeconomics, utility is defined as the satisfaction the consumer is able to…

Q: A consumer has an expenditure function given by E = Ū(P +Pr). When the consumer has an income of…

A: The maximum utility can be defined as the highest level of satisfaction, well-being, or benefit that…

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: Question 1 Consider a consumer with utility x₁2/3x21/3 and a budget constraint of 3x1+6x2 $100. What…

A: To maximize utility, we can use the Lagrangian method by setting up the following function:   L(x1,…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: According to the law of diminishing marginal utility total utility will rise at a falling rate as…

A: Utility is described as the overall satisfaction a consumer feels after using a product or service.…

Q: A consumer can maximize utility relative to their budget if they consume where   Question 22…

A: Utility maximization is the ultimate goal of consumers.

Q: A utility function is given by the equation U = 20xe¬0.1x, where x is the number of glasses o wine…

A:

Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…

A: An indifference curve is a graphic representation of a collection of products that give consumers…

Q: Suppose a consumer had a utility function given by: U= 9X + 4Y. If the price of Good X (Px) is $10…

A: The utility problem is given as The price of good X is $10.The price of good Y is $4.The budget for…

Q: (2) Consider the utility function u(x, y) = Vx+ay. Your budget constraint is P1x+p2y = М. (a) Find…

A: Since you have not mentioned which question you require an answer for, as per our standard procedure…

Q: entertainment budget is $150. Dan's best friend Jay tells Dan that his favorite thing to do is go to…

A: Budget constraint depicts the combination of two goods that are affordable, given the prices of two…

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: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: The substitution effect implies that as the price of a substitute good, the demand for the original…

A: Substitute goods are those goods that are consumed in place of each other. For example, Pepsi and…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: Which of the following statements about the budget constraint is true? The slope of the budget…

A: An Indifferent curve is a raised curve that shows all blends of two merchandise, say good x and y,…

Q: 2) A consumer’s utility function is: U(x,y) = sqrt(9xy). The price of each good is: (PX,PY) =…

A: ***Since the student has asked to solve a specific part of the question, hence, the expert is…

Q: The utility of a good or service Multiple Choice O O O is synonymous with usefulness. is the…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

Q: If the marginal utility of the burger is greater than the price of the burger, we expect a rational…

A: Consumer surplus refers to the difference between the maximum amount that a consumer is willing to…

Q: (a) What are the effects of an increase in the price of good A on a consumer’s demand if i) good A…

A: The fluctuations that happen between demand and also the supply-side decides the levels of prices…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: The consumer is consuming two goods, X and Y in equilibrium. MU from X=20units MU from Y=35units…

Q: QUESTION THREE 3.1 3.2 3.3 Distinguish between a movement along the demand curve and a shift of the…

A: 3.1 Movement along and shifting of the demand curveThe movement along the demand curve happens when…

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

A:

Q: commodity is zero, then:             Total utility of this commodity has reached a maximum.…

A: The literal meaning of utility is satisfaction. It means the satisfaction derived by a consumer from…

Q: The rate at which a consumer is able to substitute one good for another is determined by the…

A: The Marginal utility refers to the change in the total utility when one additional unit of good is…

Q: Q.24 Following schedule shows total utility. If the price per unit is 3, then how many units of the…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity…

A: Marginal utility is the extra utility experienced with the consumption of an additional unit of a…

Q: The concept of diminishing marginal utility with the help of necessary tables and graphs taking a…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: Which of the following combinations are unattainable given a consumer's budget line? Multiple choice…

A: The objective of the question is to identify which combinations of goods are unattainable given a…

Q: Which of the following combinations are unattainable given a consumer's budget line? Multiple choice…

A: Budget line:It is a graphical representation of the combination of two sets. That is earning od…