U(x, y) = min(x, 5y) is the utility function of the consumer. In addition, px = 1, Py = 3 and M = 8. If the consumer is maximizing the utility, how many units of good x and how many of good y will the consumer buy? OX=4; Y=4/3 OX=0; Y=8/3 OX=8; Y=0 None of the above.

U(x, y) = min(x, 5y) is the utility function of the consumer. In addition, px = 1, Py = 3 and M = 8. If the consumer is maximizing the utility, how many units of good x and how many of good y will the consumer buy? OX=4; Y=4/3 OX=0; Y=8/3 OX=8; Y=0 None of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: (c) Calculate the substitution effect. Hint: You need to calculate an interim income m' such that…

A: The substitution effect examines how varying prices alter consumer preference for a particular good.…

Q: A negative marginal utility implies that the consumer has reached a point of satiation.

A: Total utility, in economics, is defined as the total amount of satisfaction which a consumer…

Q: Consider a utility function given by u(x, y) = (ax² + by). It is called CES utility function.

A: Given utility function u(x,y)=axρ+byρ1ρGiven utility function is known as CES production…

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: Henry's utility function is u(x,y)=max{x+3y,3x+y}. (a) Suppose Henry's current consumption bundle is…

A: An indifference curve is a graphical representation used in microeconomics to illustrate a…

Q: Suppose a consumer has preferences described by the utility function u(x1,x2)=a In(x1)+(1-a) In(x2),…

A: We have given utility function for X1 and X2 in logarithmic form.

Q: then find out the quantity of x and y that will maximize utility.

A: Utility is defined as the total satisfaction that the consumer derives from consumption of the…

Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…

A: Utility theory is a positive theory. that looks to make sense of the people's noticed way of…

Q: Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $6 and the…

A: Given: Frank is making purchases of products C and D in profit maximizing amounts. Price of C=$6…

Q: Assume that a consumer purchases a combination of products Y and Z and that the MUVPY= 30/2 and…

A: Total utility is the utility that is got by consuming the units of the commodity. It means the total…

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<1 The price of good x is 1 and…

Q: Suppose an individual had a utility function given by: U = X ¹.25 y ¹.5. The price of Good X is $5…

A: In economics, utility means the satisfaction that the consumer gets after consuming different…

Q: For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y)…

A: We know, MRS = MUx / MUy Given (x, y) = (2,3)

Q: (5) A consumer has the following utility function: U(x, y) = (x+2)(y+1), where x and y are…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 167 = 10Qx+8Qy find the CHANGE in optimal…

A: Utility functionU = (Qx0.5+Qy0.5)2Budget Constraint167 = 10Qx + 8QyTherefore , Price of x = 10Price…

Q: If the preferences are concave, will the consumer ever consume both of the goods together?

A: When dealing with consumer preferences, the shape of the indifference curve helps to understand the…

Q: Assume there is consumer, his utility function is U(x,y)=y/(100-x). If px = 1, py = 1, please show…

A: Utility function U (x, y) = y/(100-x) .... 1) (MUx) / (MUy) = Px /Py.…

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: Question 1 Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on…

A: Utility function : U(f , d ) = f0.9d0.1 Price of food = 1 Price of diaper = 0.5 Weekly Budget =…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 122= 8Qx + 8Qy find the CHANGE in optimal…

A: Utility function : U = (Qx0.5 + Qy0.5)2Budget Constraint : 122 = 8Qx + 8 QyTherefore , Price of x…

Q: A consuMER hAS A UTILITY FUNCTION v(x, y) = MAX (2x+y) (x+3y) he consumes(1,0) in equilibrium THEN…

A: The utility function is used to calculate a consumer's happiness or satisfaction as a consequence of…

Q: Consider the following utility functions. (x,y) = −1 / [ min (6x, 2y)+1] ■(x,y) = min(6x,6y)² (x,y)…

A: Utility functions symbolizes the pleasure or satisfaction that customers feel after using a product…

Q: When utility function U(q1, q2)=min{ 34.6 q1, 17 q2} and q1= 33 and q2= 60 are given, find…

A: A utility function represents the preferences of a consumer if the consumer has a preference…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 125 = 11Qx + 14Qy find the CHANGE in…

A: Utility function : U = (Qx0.5 + Qy0.5)2Budget Constraint : 125 = 11Qx + 14 QyTherefore , Price of…

Q: For the utility function U = Qx0.58Qy(1-0.58) find the trade-off rate between good X and good Y at…

A: The marginal rate of substitution of X for Y measures the rate at which the consumer is ready to…

Q: QUESTION 1 For the utility function U=Qx0.340,(1-0.34) and the budget 174= 5Qx+5Qy find the CHANGE…

A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…

Q: A consumer utility function is U = 1 log x1 + log x2. His budget constraint is given by 2x1 + 4x2 =…

A: The consumer is in equilibrium when he gets maximum satisfaction out of his expenditure. The…

Q: 10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

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: Suppose a consumer's utility is given by: u (x1, x2) = a^/x¡ + b/x2 Where a= 8, and b = 4 What is…

A: Marginal utility measures the change in total utility due to additional unit consumption, keeping…

Q: Consumer utility function is, U(XY) = X 75 Y 0.5. The price of X good 2 AZN and Y good 4 AZN. If…

A: A consumer maximizes utility by consuming at the point where slope of indifference curve given by…

Q: QUESTION 1 For the utility function U = (Qx0.5+Q,0.5)2 and the budget 138 = 12Qx + 13Qy find the…

A: The utility function is given as The budget equation is given as The price of the X is increased by…

Q: As consumer has more and more units of a goods, its marginal utility to him (a) Declines (b) Rises…

A: # Marginal utility is the satisfaction derived from the consumption of an additional unit of a good…

Q: Find the quantities of each product that the consumer should buy, subject to the budget, that will…

A: Answer to the question is as follows :

Q: Consider the following utility functions. G(x,y) = −1 / [ min(6x,2y)+1] H(x,y) = min(6x,6y) L(x,y) =…

A: Utility is the amount of satisfaction that a consumer gets from the consumption of given good or…

Q: Question 1 Consider a consumer with a utility function of U(X1,X2,... , Xm) = ,az > 0, i = 1,2,3, ..…

A: Hello. Since you have posted multiple parts of the question and not specified which part of the…

Q: MUA/PA = zA = 16 − 3x MUB/PB = zB = 14 − 2y, where z is marginal utility per dollar…

A: Optimal Consumption Condition is given by MUAPA=MUBPB

Q: Question 11 Not yet answered P Flag question Suppose a consumer has the Utility Function…

A: Answer -

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 133 = 8Qx + 10Qy find the CHANGE in…

A: The utility function: Budget constraint: Comparing the budget constraint with the general equation…

Q: For the utility function U = Qx0.42Qy(1-0.42) find the trade-off rate between good X and good Y at…

A: To find the trade-off rate between good X and good Y for the given utility function , we need to…

Q: For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y)…

A: We know, MRS = MUx / MUy Given (x, y) = (2,3)

Q: 3) A consumer has utility function U(X1, X2, X3, X4, X5, X6, x7) = min{√x₁x2, √x3x4, √x5x6x7} Find…

A: Given,The consumer's utility function

Q: Consider a consumer with the utility function U (x, y) = Vxy = x7 y. This 1 = = eiy and MU, = Va 1 y…

A: Utility maximization condition: Mux/Muy = Px/Py

Question

U(x, y) = min(x, 5y) is the utility function of the
consumer. In addition, px = 1, py = 3 and M = 8.
If the consumer is maximizing the utility, how
many units of good x and how many of good y
will the consumer buy?
OX=4; Y=4/3
OX=0; Y=8/3
O X=8; Y=0
O None of the above.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

2
Question 7 A consumer has a utility function 100-(x₁-4)4 -(x2-3)4 and a budget constraint of 9x1+3x2 <200. How much of good 2 do they consume?
If the prices for goods A & B are $5 & $12, respectively, and a customer has $200, which basket of goods (A, B) gives her the highest satisfaction that she can afford? (10, 10) We need her indifference curves (preferences) to know. (16,10) (10, 15) (15, 10)
(a) A good is a luxury if it has a budget elasticity larger than 1, (i.e., good k is a luxury if εk ≡∂qk/∂m *m/qk> 1). Show that when a good is a luxury, then if a consumer’s total budget rises, theywill raise the share of their budget they allocate to the good. (b) Suppose m is the total budget a consumer has available to spend on three electronic products,a laptop, a phone and a tablet. Can all three of these goods simultaneously be luxuries? Whyor why not?
1
Find the x and y values that will optimize utility for U = x0.25 y0.4 subject to P = 2, P, = 8, and one's budget B = 104.
Typed Plzzzz And Asap I will upvote
Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4. b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is. (Type an integer or a decimal.) C Utility (pleasure units) AU 200- 150- 100- 50- 0 (1,67) (2,106) I (3,134) (4,156) 2 Number of units of product 4 X
For the utility function U = (Qx0.5+Qy0.5)² and the budget 122 = 8Qx + 8Qy find the CHANGE in optimal consumption of X if the price of X increases by a factor of 1.7. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
There are two goods, x and y. The consumers' utility is U=4x6y³. The price of x is Px=5, the price of y is Px=10. At interior optimum, the relationship between x and y is: options: y=2x y=0.25x y=0.5x y=x
part C D