Good X costs $8 and good Y costs $4 per unit. His utility function is U = 4.5XY. (a) Calculate Moe's utility-maximizing purchases of X and Y. (b) Calculate Moe's constrained utility- maximum if his income decreases by $200?

Q: Suppose a consumer’s preferences over two goods x1 and x2 are given by u = root(x_1 x_2). Her…

A: Answer: Given, Utility function: u=x1x2 Price of good 1 = p1 Price of good 2 = p2 Income = M The…

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Q: Derive the Slutsky equation from the starting point that: x(р,, р,, М) %3D х. (Р,, Ру, x. (P,, P,,…

A: Slutsky Equation is defined as the equation which shows the total change in demand consists of the…

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Q: Assume a consumer with the utility function U(X,Y)=X²Y² and the typical budget constraint M= PxX+…

A: Given Consumer's utility function: U(X,Y)=X²Y² Consumer's budget line: M= PxX+ PyY

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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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Q: Consider a consumer who purchases two goods, x and y. The consumer’s utility function is U(x, y) =…

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A: Given  Unit of x MUx Unit of Y MUy 1 72 1 24 2 66 2 20 3 60 3 16 4 48 4 12 5 30 5 8…

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Q: The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(7.9)y^(9).…

A: U(x,y) = x7.9y9  Price of x (Px) = 19 Price of y (Py) = 80 Total Income (M) = 10800

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Q: > Nikki's utility function is the same as in problem 5: U(X, Y) = XY2 > Prices are Px = 4 and Py =…

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Q: ralph has a utility function u(x,y) = 0.5x + y and an income of $M. Let the price of x be $4 and the…

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Q: suppose that the utility function of a consumer is given by TU(x,y)=3x2 y and the price of x and y…

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A: This is a case of complementary function where both goods are consumed in the fixed proportion.

Q: Question 2 Determine the equation of the income offer curve for the following utility function when…

A: 1) u(x1,x2) = log(x1) + 2log(x2)2) u(x1,x2) = x1 - 1x23) u(x1,x2) = 2x1 + 4x2P1 = 1 and P2 = 1 and M…

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Q: TRUE OR FALSE? Maximilian consumes two goods, x and y. His utility function is U(x, y) = max{x, y}.…

A: Please find the attached answer os all three questions below-

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Q: Consider the following utility function: U= 100x0.50,0.50 A consumer faces prices of P, = $2 and P,…

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Q: 1) Ambrose has the utility function U(x,x:) = 4x: + xX:. (X:: nuts, x:: berries). a) If Ambrose is…

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A: * ANSWER :-    The Income consumption curve shows the relationship between consumption of goods and…

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