Suppose that a consumer with the utility function U = X0.75 Y0.25 choses a bundle where X=10 and Y=5. If the prices of the two goods are PX = $3, and PY = $1, calculate marginal utility obtained per dollar spent on each good and show whether this consumer can increase utility without increasing expenditure?

Q: For each of the following utility functions, compute the marginal utility of good X (MUx) and the…

A: Marginal utility: marginal utility refers to the addition to the total utility when an additional…

Q: A consumer has $100 and would like to purchase food (F) and gas (G). Suppose their utility is given…

A: Given: U ( F,G ) = F 0.8 G 0.2 M= PF x F + PG x G 100 = PF x F + PGx G MUF= o.8 ( G / F ) 0.2 MUG…

Q: Mary spends all her budget on statistical software (S) and office supplies(O). Her preferences can…

A:

Q: Your utility function is defined as U = x¹/3y2/3 where x and y are the only two goods you consume.…

A: Utility function represents the relationship between the utility and commodities that are consumed.

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: x0.5 y0.5, A consumer has a Cobb-Douglas utility function u = and she has a bundle of goods (x, y) =…

A: The Cobb-Douglas utility function is a widely used form of utility function in economics that…

Q: I. You only consume two goods and your preferences are represented by utility function U(x1, x₂) =…

A: Monotonic preference refers to a preference ordering in which an individual's preference for one…

Q: 1. Suppose that a consumer with the utility function U = X0.25 y0.75 chooses a consumption bundle…

A:

Q: sider the utility function U(x, y) = xy, which describes the enjoyment Emi gets from consuming s (x)…

A: Equilibrium condition:  MRSxy = Px/Py

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

A: A utility-maximizing consumer chooses the bundle of goods that gives him/her maximum satisfaction.…

Q: Let a person's utility function over two goods, X and Y, be given by, U(X,Y) = 3X0.4y0.6. Let the…

A: At Optimal bundle, slope of indifference curve is equal to slope of budget constraint

Q: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…

A: Utility is defined as the usefulness or the satisfaction a consumer derives from a good or service…

Q: Suppose a consumer’s utility function is u = x_1^(3/2) x_2^(3/2) . She spends her budget of £27 for…

A: Income = 27  Price of x1 : p1 = 6 Price of x2 : p2 = 6  Budget Constraint without discounts : P1x1 +…

Q: Q1. Jason has preferences defined over novels (good x) and DVDs (good y) described by the utility…

A:

Q: Joyce drinks both coffee (x) and tea (y). Her preferences over these two goods can be represented by…

A: Utility function is the functional relationship between the utility earned from consumption of two…

Q: Suppose we are able to model the total utility function for the consumption of two goods, good x and…

A: Utility is maximized when slope of indifference curve given by ratio of marginal utilities and slope…

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

A: The Budget Constraint Equation is a formula that calculates the amount of money that can be It means…