Robinson’s utility function is U(C,B)= max{2C, B}. This function selects the maximum of two inputs as an output. For example, max{1, 5}=5 or max{4, 2}=4. Consider that Robinson sleeps 8 hours and spares 2 hours to eat what he collects. Robinson spends 2 hours for collecting one coconut and 1 hour for berries. (Hint: a day consists 24 hours) 1. Draw indifference curves of Robinson. 2. Find Robinson’s optimal (coconut, berry) bundle.

Q: Mort consumes only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages…

A: Utility maximization refers to the process where individuals aim to allocate their resources in a…

Q: You have the Cobb-Douglas utility function u(x,y) = xy over apples (x) and plums (y) and you have…

A: To construct a set of feasible set of bundle we need to keep both the budget income and weight…

Q: Suppose a person has allocated a monthly budget of 200 and they like to consume coffee (C) and…

A: A utility function is a thinking used in economics to signify how humans or buyers assign values or…

Q: The elementary school has one candy machine in the cafeteria.   Candy at the vending machine costs…

A: An indifference curve, with respect to two commodities, is a graph showing those combinations of the…

Q: A consumer has set a budget of $400 for the consumption of good X and Y. The price of Good X is…

A: Utility function : U (X, Y ) =  x y Price of x  : Px Price of y : 5 Budget Set = 400 Therefore ,…

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 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: Joyce consumes x1 and x2 together in fixed proportions. She always consumes 1 unit of x2 for 2 units…

A: The utility function is the mathematical relationship between the utility and the amounts of various…

Q: For the same set of preferences as in question 5 of this problem set, what is the elasticity of…

A: We have given utility function  U = AxAαxB1-α To find price elasticity of demand of good XA, we need…

Q: Lucas has $40 per week that he can spend on lemon soda (X) and chips (Y). The price of the lemon…

A: The budget refers to the total income of a consumer which can be used to buy a given level of goods,…

Q: Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he…

A: Utility function is the function that shows or represents the level of satisfaction or degree of…

Q: Consider a graph with paper on the x-axis and pencils on the y-axis.  If the price of pencils…

A: Budget constraint shows the relationship between the two goods, their prices and the income of the…

Q: Milo spends £27 on stamps (S) and maple candy (C). His preferences for these goods are given by the…

A: Given ,  Milo income = 27  Utility function : U = min { S , 3C  }  Price of Stamps = 1.1  Price of…

Q: Pedro, a retired economics professor, grows lemons and oranges in his back- yard. He consumes some…

A: Given information Pedro's utility function  U= Min(X,Y) An endowment of lemon (X)=20 pounds…

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: For each of the following utility functions get the marginal utility of consumption of each of the…

A: This can be defined as a concept that shows that when a purchaser purchases an extra unit of any…

Q: A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good…

A: In utility maximization problem, a consumer attains his equilibrium or optimal consumption bundle…

Q: Anna has an income of 1000 euros and utility function U(x,y)=x²y³. The prices of the two goods are…

A: Budget Constraint:A budget constraint represents the limit on the consumption of goods and services…

Q: Consider the following utility functions. G(x,y) = x² + 3y² H(x,y) = (x+1)¹/2 + y + 1 L(x,y) = x ey…

A: The function for which the MRS decreases as good x increases, have strictly convex preference.

Q: Maya is doing her undergrad at Queen's University. She loves donuts and chocolate chip cookies…

A: a) When the price of CCC (chocolate chip cookies) is $1, which is the same as the price of donuts,…

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: A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y. a. The budget set is illustrated…

A: The budget constraint is given by the inequality: 500≥4X+5Y.To find the values of A (the intercept…

Q: Charlie has the utility function U(XA, XB) = XAXB. His indifference curve passing through 24 apples…

A: The utility function represents the relationship between the utility and commodities that are…

Q: Chapter 22 Homework Poornima likes going to the ballpark to watch baseball, and she also is fond of…

A: Budget constraint depicts the combination of two goods that can be afforded by a consumer, given the…

Q: For the utility function U = Qx0.28Q (1-0.28) and the budget 137 = 110x + 6Qy find the CHANGE in…

A: Utility: The purpose of the utility is to satisfy the power of a commodity. It is possible to say it…