A consumer’s utility function is given by U = min{4x1, x2}. The kinks or corners in the consumer’s indifference curves occur alone the line is? Please provide working
A consumer’s utility function is given by U = min{4x1, x2}. The kinks or corners in...
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two friends, Michael and Peter 1 and Peter's is given by u(x1, X2) = = 1042 1 Τ) -x12. Who has the same preferences as Anne? And who has indifference curves with similar shape as Anne's indifference curves? Explain.
4. Anne's utility function is given by u(xi,x2) Michael's utility function is given by u(xı, x2)' = x1x2. She has two...
Question2 a) A consumer has utility function U(zi,x2)-min{x2 + 4x1,T1 + 4n). i . Draw the indifference curve for U(ri, ra) = 20 and shade the area where U(ri,22)2 20 2. For what value of /wll the unique optimum feature - 3. For what value of P1/P2 will the unique optimum feature#2-0. 4. If neither nor is equal to zero, and the optimum is unique, what must be the value of a1/r2?
The individual has a utility function of u(x1, x2) = min (4x1, 5x2) and faces prices p1=2 and p2=1. We know they consume 20 units of x2 and spend all their income. What is the demand function for x1?
1. (20 points) Mac has utility over x; and x2 given by u(x1, x2) = min . If P. = $1. P. = $1. and I = $100. find the value of xı* (Hint: This is Leontief utility, the kind with right-angled indifference curves) 2. (10 points) If P, = $4, P2 = $2, and I = $20, and my utility is given by u(x1, x2) = 4x1 + 3x2, find x* (Note: I'm asking for optimal consumption of Good...
4) A consumer’s utility function is u(x, y) = min{x, 3y} (a) Find the consumer’s optimal choice for x, y as functions of income I and prices px,py. (b) Sketch the demand curve for y as a function of other price px when py = 10, I = 100. Suggestion: a picture showing the budget set, optimal choice and indifference curve. (I need help with the sketching which is the second part)
8. Problems 3.8 k1/6 Suppose indifference curves for a utility function U are given by z --kısx-usy-As. The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by y 0.51/x2 - 4 (x2-k) -0.5x The utility function U k associated with these indifference curves is Suppose indifference curves for a utility function U are given by z-- 2x The utility function U k associated with these indifference curves is
Consider two goods, good 1 and good 2. The consumer’s utility function is given by U(x1,x2)=V(x1)+x2. Derive the ordinary demand function of good 1. When the market price of good 1 is given P1=P1' , derive the consumer’s surplus. If the price is changed to P1=P1", prove that the change measured by consumer’s surplus is the same as the Compensating variation. Also prove that it is the same as Equivalent variation.
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Given: U(x2)min(3x, ,6x2) P = 4, P-5, 1-20 a) Graph two indifference curves for this utility function. b) Write the function for the budget constraint and graph it c) What are the utility maximizing amounts of x, and x, given the budget constraint? d) Would your answer change if the utility function were U(x1,x2)-min(x,,2%)? Why or why not?
Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function U(x1, x2) = (x1 + x2) 3 . Draw an indifference curve for this consumer and indicate its slope.
Question-3 Suppose the consumer’s utility function is given by U (x1 , x2 ) = x1x 2 2 . Let the prices of good 1, good 2 be p1 , p2 , and suppose this consumer wants to reach a level of utility U (a) [2] Formulate the consumer’s problem in terms of the Lagrangian (b) [5] Derive the Hicksian demands for this consumer (c) [3] What is the expenditure for this consumer. (d) [5] Show that x H (...