1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution...

Question

Question

b) The consumers utility function is given by U(X,Y) MIN(X, 4Y), and the given bundle is X-5 and Y i) MRS- ii) Draw your graph in this space: c) The consumers utility function is given by U(X,Y) = 4X 2Y and the given bundle is X-1 and Y-3. i) MRS- ii) Draw your graph in this space:

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

MU ax 2 0.25 Supe = ongin) MRSIs CI is L

Add a comment

Answer 2

Similar Homework Help Questions

1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution...

1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X on the horizontal axis, and the amount of good Y on the vertical axis. a) The consumers utility function is given...
i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph...

i) Find the Marginal Rate of Substitution at the given bundle, and ii) use a graph to indicate the given bundle, and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X on the horizontal axis, and the amount of good Y on the vertical axis. c) The consumers utility function is given by U(X,Y)-4X + 2Y and the given bundle is...
Use the following table to indicate whether the marginal rate of substitution (MRS) of each utility...

Use the following table to indicate whether the marginal rate of substitution (MRS) of each utility function increases, decreases, or is constant as x increases. MRS Increases with Utility Function Ux,y)- 3x y U(x,y) = MRS Decreases with x Constant MRS MRS Increases withx x-y U(x,y) = For a utility function for two goods, U xy to have a strictly diminishing MRS ie, to be strictly quasi concave), the following condition must hold: Use the following table to indicate whether...

1.3 The consumer's utility function is given by U(X,Y) = 2X + Y and the given...

1.3 The consumer's utility function is given by U(X,Y) = 2X + Y and the given bundle is X = 1, Y-3. MRS = Draw your graph in the space provided. Label at least some tick marks on the axes to make reading the graph easier
help solve 2. (16 total points) Suppose there are two consumers, A and B The utility...

help solve 2. (16 total points) Suppose there are two consumers, A and B The utility functions of each consumer are given by: UA(XY) = X10*712 U(X,Y)= 4X+Y The initial endowments are A:X = 4: Y = 4 B:X = 4; Y = 12 a) (10 points) Using an Edgeworth Box, graph the initial allocation (label it "W") and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to label your graph carefully and...
can someone explain this step by step? especially don't understand how they got m/px? why we...

can someone explain this step by step? especially don't understand how they got m/px? why we can't use the lagrange. and not sure how they drew the graph for this question. SOMEONE PLEASE HELP MIDTERM SOON AND WILL GIVE BIG THUMBS UP!!!! confused where 4x20+5x0 is coming from Problem 4 Eric's preferences for goods x and y are represented by the following utility function: U(X,Y) = 4X +5Y. The price of good X is px = 2 and the price...

7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to...

7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle...

7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
3. For each of the utility functions below, compute expressions for the marginal utility with respect...

3. For each of the utility functions below, compute expressions for the marginal utility with respect to good X, QU(X,Y)/OX, and the marginal utility with respect to good Y, CU(X,Y)/CY a. U(X,Y)= XY b. U(X,Y)= 4x + 3Y c. U(X,Y)= XY2 + 3X d. U(X,Y)= X + Y5 e U(X,Y)=(2X+2Y)

1. (24 total points) Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also,...

1. (24 total points) Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also, the consumer has $72 to spend, and the price of Good X, PX = $4. Let Good Y be a composite good whose price is PY = $1. So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X. a) (2 points) How much X and Y...

1. (18 points) For each of the following situations, i) Find the Marginal Rate of Substitution...

Homework Answers