Can explain to me how to solve the question? TQ 1. Suppose the marginal rate of substitution is constant at 6 for all possible consumption bundles. Next suppose that the price of good 1 decrease and the ratio P1/P2 is greater than 6. Show that the income and substitution effects from this price change are both zero.

Q: 1) a) Given the following typical utility curves determine whether they have convex indifference…

A: "Since you have posted multiple question, I can only answer the first question, rest you need to…

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: Consumption is the want satisfying capacity of a person.

Q: Suppose the marginal rate of substitution is constant at 6 for all possible consumption bundles.…

A:

Q: 3) Illustrate the following utility functions by sketching indifference curves in the X,Y space:…

A: An indifference curve is a locus of all combinations of two goods or two baskets of goods a consumer…

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Q: A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15 and…

A: Market rate of substitution refers to the rate at which two goods can be exchanged in a market place…

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A: Elasticity of substitution refers to the change in capital labor in comparison with the marginal…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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A: Different utility levels of consumers are taken to be independent. This means that utility obtained…

Q: Consider a utility function U= xy2 in a two good economy of good x and good y. This consumer’s…

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Q: Sarge's utility function is U(X1,X2)= X1*X2. If his marginal rate of substitution (MRS) is 3 and he…

A: MRS = Marginal utility from good x1 / Marginal utility from good x2

Q: 3) Oğuz has the utility function U (X1,X2) = X:*x2?. (x:: nuts, x: berries). a) If Oğuz has 25 units…

A: Note: Since this question has five subparts, we are not allowed to answer more than three subparts…

Q: Ann consumes two goods, r and y. Her utility function is given by: u(x, y) = (x+1)VJ. The price of a…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and Y is…

A: Marginal rate of substitution refers to the ratio of marginal utility of good X and marginal utility…

Q: Suppose consumer are always ready to trade k units of good X for w Then, I poo8 10 X and Y are goods…

A: The marginal rate of substitution is the slope of an indifference curve. It measures units of good X…

Q: 4.12 (0) Joe Bob has a utility function given by u(x1, x2) = xỉ+2x1x2+ (a) Compute Joe Bob's…

A: a) MRS=-(∂U/∂x)/(∂U/∂y)           (∂U/∂y would be partial differentiation with respect to y and…

Q: 1. Every week I spend a total of £400 buying two goods, luxuries (L) and necessities (N). I obtain…

A: The literal meaning of utility is satisfaction. Utility means the satisfaction derived from…

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A: Since you have posted multiple questions we will solve only first question here, please post the…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

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A:

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A: Market rate of substitution refers to the rate at which two goods can be exchanged in a market place…

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A: Income effect represent the change in consumption and quantity demand of good on the basis of change…

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Q: 29. Which one is not a assumption of the theory of demand based on analysis of indifference curves?…

A: Indifference Curve shows the different combinations of goods that gives consumer the same level of…

Q: Sarge's utility function is U(X1,X2)= X1*X2. If his marginal rate of substitution (MRS) is 3 and he…

A: An utility function represents the preferences of a set of goods and services that give the consumer…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: Hi! thanks for the question but as per the guidelines, we answer up to three subparts at one time.…

Q: 3. Draw and describe analytically the set of feasible consumption choices. What is the marginal rate…

A: Answer: Feasible consumption choices: the set of feasible consumption choices are all the choices…

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Q: a. What is an Inferior good? Sketch an Engel curve for inferior goods and clearly label the two…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose that a consumer's marginal rate of substitution at her current chosen bundle is MUx/MUy=3…

A: The marginal rate of substitution (MRS) is the slope of the indifference curve (in the question is…

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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Marginal rate of substitution refers to the ratio of marginal utility of two goods.

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A: Total effect of price change is called Price effect and TE = SE + YE . SE = substitution effect YE =…

Q: Qu Robert's utility function is U(1, y) = 2/T + y. n every graph for this question, set y in the…

A: U(x,y) = 2x + y

Q: QUESTION 7 Select which of the following statements is true if two goods are perfect complements: O…

A: complementary goods are negatively related to each other.

Q: Fabian With a utility function of U-2XY, Fabian's MU, = 2Y and his MUy = 2X , where MU is marginal…

A: The equilibrium is established where the MUx/MUy = Px/Py

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.