Consider the following utility function:U = 100x.50,0.50A consumer faces prices of P, = $2 and Py =$1.Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X anunits of good Y. Then the marginal rate of substitution is equal to:MRS = 1.83. (Enter your response rounded to two decimal places. Do not forget to include the negative sign.)Use absolute values.The consumer should consumeto maximize utility.more Y and less Xthe same amount of X and Ymore X and less Y15tvMacBook Air80escDIIF1F2F3F4F5F6F7F8@#3%278.QWEYtabs lockASFGHJZCVNMOnteel8 :< COTD

U=100X^0.5Y^0.5 Px=$2 Py=$1 MRS=1.83 MRS is the ratio of marginal utilities of the two goods In a…

Answered: Consider the following utility…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 11SQ

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Consider the following utility function: U = 100x°.50,0.50 A consumer faces prices of P, = $2 and P, =$1 Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X and 11 units of good Y. Then the marginal rate of substitution is equal to: MRS = (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) Use absolute values. 15 stv МacВook Air 80 DI esc F1 F2 F3 F4 F5 F6 F7 F8 @ %23 2$ & 1 2 4 6 7 8 Q W T Y tab A S F H J K aps lock C V M control option command B H
Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P, =$1. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 6 units of good X and 11 units of good Y. Then the marginal rate of substitution is equal to: MRS = 1.83. (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) Use absolute values. The consumer should consume to maximize utility. more Y and less X the same amount of X and Y more X and less Y O étv MacBook Air 80 esc F1 F2 F3 F4 F5 F6 F7 F8 # $ % & 1 2 7 Q W E T Y tab S D F G caps lock C V M ft control option command つつエ B N
Consider the following utility function: U= 4X + Y. A consumer faces prices of P, = $2 and P, =1. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 10 units of good X and 19 units of good Y. Then the marginal rate of substitution (MRS) is equal to: MRS = (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) étv Help Me Solve This eText P MacBook Air 80 DII esc F2 F3 F6 F8 F1 F4 F5 F7 @ 23 2$ & 1 2 4 6 7 8. Q W E R T Y U tab A S G caps lock C V shift fn control option command ーのエ B レ
Consider the following utility function: U= 4X +Y. A consumer faces prices of P, = $2 and P, =1. Assuming that graphically good X is on the horizontal axis and good Y is on the vertical axis, suppose the consumer chooses to consume 10 units of good X and 19 units of good Y. Then the marginal rate of substitution (MRS) is equal to: MRS = - 4.00 (Enter your response rounded to two decimal places. Do not forget to include the negative sign.) The consumer should consume to maximize utility. only good X only good Y the same amount of X and Y tv 15 МacВook Air 80 DII esc F1 F2 F3 F4 F5 F7 F8 ! @ #3 $ % & 1 2 4 7 8 9 Q W Y tab A S F G H. K caps lock C V N M ft control option command つつく0 R
QUESTION 1 For the utility function U = Qx0.73Qy(1-0.73) find the trade-off rate between good X and good Y at Qx= 3 and Qy=12 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).
3) Oğuz has the utility function U(x1,X2) = x:*x2². (X: nuts, X2: berries). %3D a) If Oğuz has 25 units of nuts and 17 units of berries, the price of nuts is 2 and the price of berries is 1 liras, what would be the optimal consumption of Oğuz? b) Assume the prices change, so that nuts cost 1 and berries cost 3 liras. What is the new demand? In this change, What is the pure substitution effect? What is the income effect? c) In the change calculated in part (b), what is the pure substitution effect? d) In the change calculated in part (b), what is the income effect? In the change calculated in part (b), what is the endowment effect?
1 Consider a consumer who consumes only two goods, 21 and z2. His utility function is u (21, 22) = In z1 + 2. where In represents the natural logarithm. 1.a Derive the consumer's MRS of good 1 for good 2 using calculus to calculate his marginal utility from z and his marginal utility from z2. 1.b If the price of z1 is $2 per unit and the price of z2 is $4 per unit, and the consumer's income is $100, What is the equation of this consumer's budget line? 1.c What are the optimal consumption choices, z and z5, for this consumer? Show your work.
Given the following utility function: and marginal utilities: A consumer facing the following prices: chooses to consume: U = 2X + 2Y Assume that graphically good X is on the horizontal axis and good Y is on the vertical axis. Given this consumption bundle, the marginal rate of substitution is equal to - Given this value, the consumer should consume MU, = 2, MU, = 2 P, = $2, P, =5 15 units of good X and 19 units of good Y. (Round your answer to two decimal places. Note that the minus sign is already included). in order to maximize his/her utility.
1. Consider a consumer who consumes two goods. The utility function is given by u(x1, x₂) /2x1+1+√√√x₂, - where x > 0 denotes the amount of good i = the price of good 1 is 3, the price of good 2 is p2 > 0, and the income is 12. 1,2 consumed. Unless stated otherwise, (1) Calculate the marginal rate of substitution (measuring the value of good 1) at the consumption plan (x₁, x₂) = (3, 4). (2) Calculate the consumption plan that is optimal for the consumer. (3) Let v(p₂) denote the utility level at the optimal consumption plan. Calculate its derivative with respect to p2, i.e., v'(P2), at p2 = 3. (4) Suppose that p2 = 1 and the utility level is 10. Calculate the compensated demand for each good.
Given the following utility function: U = 5X + 10Y and marginal utilities: MU, = 5, MU, = 10 A consumer facing the following prices: Px = $2, Py =1 chooses to consume: 16 units of good X and 9 units of good Y. Given this consumption bundle, the marginal rate of substitution is equal to (Round your answer to two decimal places. Note that the minus sign is already included.). Given this value, the consumer should consume in order to maximize his/her utility.
Suppose that consumer has the following utility function: U(X,Y) = XY and Py = 1, Py = 4 and I = 720. Suppose now that Px goes up to 4. What is the magnitude of the substitution effect on good X? %3D %3D -90 180 -180 90
Sarge's utility function is U(X1,X2)= X1*X2. If his marginal rate of substitution (MRS) is 3 and he is currently consuming 12 units of good 1, how many units of good 2 is he consuming? [A] Please put your answers in numerical values with no comma or decimal places.

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