) Suppose there are two goods, X and Y. The price of good X is $5, the price of good Y is $3, and your income is $60. Neatly graph your budget line and label the intercepts. (a) What is the slope of your budget line? (b) How many units of good Y do you give up per unit of good X? (c) Suppose the price of good X rises to $6, show what happens to the budget line and label any new intercepts. (d) What is the new slope of the budget line? How many units of good Y do you now give up per unit of good X? (e) Suppose the price of good X only rises to $6 once you have purchased six units of good X. In other words, it is $5 per unit for the first six units and $6 per unit thereafter. Make a new graph of this "kinked" budget constraint.

Q: Assume that a consumer has a given budget or income of $10 and that she can buy only two goods,…

A: Given information:- Given income     = $ 10 Apple price         = $ 2 each        Banana price…

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: 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: Utility is given as: U(x, y) = x^1/2y^1/2   (a) Graph a typical indifference curve for this…

A: An economic concept that refers to satisfaction in consuming the commodity. By deducting the…

Q: Assume that a consumer has a given budget or income of $12 and that she can buy only two goods,…

A: Budget is the amount of income that a consumer has to spend on goods and services.

Q: CS 14  Subject - Economics  Please show work/explain.   Robert’s utility function is U(x, y) =…

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

Q: Help!

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

Q: Let the utility function be U(q1. 92) = Min{ q1. 292). Let p1 =2 and p2=2. Income is $30 per week.…

A: Given utility function U(q1,q2)=Minq1,2q2 Where q1 represents a cup of coffee and q2 represents a…

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) Now suppose you have $500 to spend. You can buy computer software, which costs $50 or go on a ski…

A: Budget set: The budget set signifies all the quantity sets of goods that can be purchased with the…

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: you have $400,000 to spend on a house and "other goods." The price of 1 square foot of housing is…

A: Answer a) Income = $400,000Price of House (PA) = $50/square foot. Therefore Total Expenditure on…

Q: Alternatives that are all equal satisfying to a consumer are illustrated by a) an indifference…

A: Indifference Curve illustrates all combinations of goods that gives the consumer same level of…

Q: Consider the utility function U(r, g) = r+ Iny. (a) Find the marginal rate of substitution, MRS of…

A: The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to…

Q: PROBLEM (2) A consumer has utility u(x,y) = -- over bundles of food (x) and clothing (y). This time,…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Suppose u(x) = max{arı, ßr₂} for parameters a, ß > 0. (a) Will this consumer will spend all their…

A: Given: Utility function u(x)=Maxαx1,βx2

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: ate the const mer's max zation problem and express this in words. ow let Px = 10, Py=20 and income M…

A:

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: Consider the consumer problem with two goods, apples and oranges. Let x be the amount of apples and…

A: There are two goods : Apples (x)  & Oranges  (y) Utility function : U = 2(x)0.5 + y Income = I…

Q: 2. A store can sell 40 widgets per week at $8 each and 25 widgets at $13 each. a. Find the demand…

A: Answer: Given, Price (P) Quantity (Q) $8 (P1) each 40 widgets per week (Q1) $13 (P1) each 25…

Q: (Figure: Bowling and Chinese Buffet) The price of a Chinese buffet dinner is $10 and an evening of…

A: The budget-line is a downward sloping line. Budget-line of Bill represents various combinations of…

Q: Linda loves buying shoes and going out to dance. It costs Linda $50 to buy a new pair of shoes or to…

A: The budget line is the graphical representation of all the possible combinations of two different…

Q: Tony is throwing a party at his Fraternity and is trying to choose what booze to buy. A bottle of…

A: Disclaimer : - Since you asked multipart question, we are solving only first 3 subparts as per…

Q: 10) Suppose hamburgers are on the horizontal axis and root beer on the vertical axis. You have a…

A: Here, it is given that the hamburger is placed on horizontal axis and its price is $4, while root…

Q: Suppose Paul, a 3rd grader, has the following utility function over his lunch of Twinkles (t) and…

A: The utility function shows the relationship between utility and goods consumed. Twinkle Cost…

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: 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…