Assume that Bob's utility function over beer x and pizza y is U(x,y) = 4x+12y. Which of the following statements is false? a) If the price of pizza is 12 and the price of beer is 3, then we can't determine how much pizza relative to beer Bob purchases. b) If the price of pizza is 16 and the price of beer is 5, then Bob only purchases pizza. c) If the price of pizza is 15 and the price of beer is 5, the own price elasticity of the demand for pizza as well as beer is infinite. d) It the price of pizza is 15 and the price of beer is 4, Bob purchases only beer e) Pizza and beer are perfect substitutes.

Q: Would this person be maximizing utility?: Bobby eats 2 sandwiches and drinks 3 sodas. The last…

A: There are two goods, i.e., sandwiches and sodas. Bobby eats 2 sandwiches and drinks 3 sodas.…

Q: Ambrose's utility function is = 4x1 ^1/2 + x2. If the price of nuts (good 1) is $1, the price of…

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A: According to the envelope theory, if the exogenous variable changes, the direct effects of that…

Q: Suppose that a consumer has the utility function u(x1,x2) : quantity of good i consumed, i = 1, 2.…

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A: Complementary goods refer to the goods which are consumed together in a fixed proportion and provide…

Q: Assume an individual's utility from consuming good #1 and good #2 is given by the following…

A: From the utility function, we can infer q1 and q2 are perfect complements and are consumed in fixed…

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A: a. Since N>0, for any N in that, the order of the bundles will be preserved. That mean if…

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A: The utility function can be written as follows: The budget constraint can be written as follows:

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A: Individuals (consumers) directly concerned within the acquisition, use, and disposal of economic…

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A: The utility function for Cody is, U(x,y)=2x+2y Given the prices and income we find the optimal…

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A: The utility or satisfaction obtained from consuming an additional unit of output is known as…

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Q: Suppose Sky would like to spend Php 1000 to rent the badminton court (C) and study area (S) on a…

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A: Introduction: A customer is considered to be in an equilibrium condition when they believe that they…

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Q: Which of the following are directly related to the principle of diminishing marginal utility?…

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Q: Lisa can buy either whole chickens or chicken wings at her local supermarket. Her utility function…

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Q: Suppose an individual is currently spending all of their income on a bundle of books and pizza, but…

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Q: Suppose consumer are always ready to trade k units of good X for w units of good Y. Then, which of…

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Q: Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will…

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Q: x0.25 y0.75 and has an income of As in question 2a, A consumer has a utility function given by U…

A: U = x0.25y0.75 MRS = MUxMUy = 0.25x-0.75y0.750.75x0.25y-0.25 = 1y3x Before Price change: MRS =…

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A: Marginal utility is the additional utility gained from consuming an additional unit of the good.

Q: 1 Consider a consumer who consumes only two goods, z1 and z2. His utility function is u (1, 2) = In…

A: Utility function is given as:- U(z1,z2) = lnz1+z2 Price of z1 = $2 Price of z2 = $4 Income = 100

Q: You are given the following total utility function: V(C1, C2) = U(c,) + U(c2) = c,/2 + c2/4…

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Q: A consumer of two goods, good 1 and good 2, has a utility function u (X1, X2) = x1 0,6. X2 0,4,…

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