sam's utility over x and y is given by the U= 10x.y. The marginal utility of each good is given by : MUx=5y and MUy=5x. a) Draw sam's indifference curve representing a utility level of 100. b) is sam's preferences well behaved? why or why not?

Q: ne slope əpna əl c. What is the slope of the indifference b. IS curve (MRS)? d. Write the intuition…

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

Q: Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4…

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

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: To remain in consumer optimum, a price decrease requires V in consumption. A price increase requires…

A: To remain in consumer optimum, a price decrease requires an increase in consumption. A price…

Q: Which of the following utility functions represent preferences which do not satisfy monotonicity? U=…

A: Monotonic preferences refer to such consumer preferences towards the greater consumption of goods…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: The ability of a good to fulfill human needs is demonstrated by its utility. The utility function…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: Given U(M,S)=M^{2/3}S^{1/3} a.) Budget constraint : Let M denote Mcnuggets and S Szechuan sauce,…

Q: Kevin's utility function is given by U=3x+2y. Kevin's demand functions for X and Y graphically…

A: Substitute goods are used for each other. When price of one good increases, the consumer tends to…

Q: marginal utility of hamburgers.  On a graph with pizza on the x-axis and hamburgers on the y-axis,…

A: Budget constraint is the constraint which defines combination of two goods which a consumer can buy…

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: Suppose the MU of good X is 20 its price is K4 and the MU of good Y is 50 its price is K5. The…

A: Suppose the consumer is consuming two goods; X and Y.The MU of good X is 20. i.e., MUx = 20Price of…

Q: Let u(x₁, x₂) = 4x₁ + x₂ be the utility function. 1. Sketch the indifference curves corresponding to…

A: The indifference curve shows the different combinations of two goods  which can be consumed which…

Q: 3. Tom's utility function is U (x; y) = 3x+4y: His budget constraint is ax + by = 1, a, b, I > 0 a)…

A: The perfect substitute utility function is a linear utility function. Under perfect substitute, the…

Q: uppose a consumer’s preferences for goods Y and X can be represented by the utility function,…

A: A rational consumer will consume where the MUx/MUy = Px/Py  Here ,  MUx is the Marginal utility's of…

Q: Anna is indifferent between bread and rolls for her sandwiches. She believes that 2 slices of bread…

A: Guruji (1) According to the above given question, it's mentioned that 2 slices of bread is almost…

Q: Assume that there are two goods in the world: apples and bananas. Say that Natalie has a ility…

A: Hi there , as per our guidelines we are only allowed to solve 1 question with maximum 3 sub parts at…

Q: Paul derives utility from cups of coffee (C) and donuts, which he eats a dozen at a time (D). His…

A: The above question is based on consumer preference. Here Paul consumes coffee and donuts and his…

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: There are two goods x and y. A consumer has utility function U(x, y) = min(2x, y). The price of good…

A: A utility function in economics represents a mathematical expression that quantifies an individual's…

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: Suppose a consumer's utility function is U(x₁,x₂)=x₁.x2. The price of Good 1 is 1, the price of Good…

A: The utility function is given as The price of good 1 is 1.The price of good 2 is 2The income is 40.

Q: Mary's indifference map and budget constraint for goods X and Y are shown below. If Mary spends all…

A: Utility is the total satisfaction that the consumer derives from consumption of the goods and…

Q: Victoria has the following utility function: U(x,y) = x½y½ and faces the budget constraint: M = Px +…

A: Given, U(x,y) = x12y12 M = 120 Px = 4 Py = 1 M = Px + Py 120 = 4x + y        ------------ equation…