Suppose that the consumer maximizes his utilitysuch that the marginal utilities of goods X and Y are; MUx=80-16x MUy=60-2y Let Px=P4,Py=P2 and I=P80 Find the utility maximizing quantities X and Y

Q: Suppose a consumer's utility function is u(x, y) = ;V+), with x and y the 6. amounts of two goods…

A: U(x,y) = 12x+12y2Px = 1Py = 2M = 300

Q: Amy is a chocolate lover and has a total of 50 dollars to spend this week. The price of a certain…

A: Given Utility function U(q)=q+50-pqq∈0,50PTotal budget=50Price of q=50

Q: Find the marginal utility oI X1, the marginal ty o and the marginal rate of substitution for the…

A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…

Q: 7.1. Consider preferences defined over the nonnegative orthant by (1, 12) ► (yı, 42) iff x1+I2 <…

A:

Q: Lara has preferences represented by the utility function U(x, y)  2x  2y. She consumes 10 units of…

A: here we calculate value of Y which are as follow-

Q: Suppose that a fast-food junkie derives utility from three goods-soft drinks (x), hamburgers (y),…

A: U(x,y,z)=x0.5y0.5(1+z)0.5 where Px = 1 Py = 4 Pz = 8 Income = 8

Q: A consumer spends all her income of K120 on the two goods A and B. Good A costs K10 a unit and good…

A: In economics, the term "utility" refers to the sense of well-being that comes from using a product…

Q: Anthony spends his income on fishing lures (L) and guitar picks while a package of guitar picks…

A: Given utility function:- U(L, G) = L0.5 G0.5 PL = 2, PG = 1, Budget(B) = 30

Q: PROBLEM (2) Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is…

A: Problem (2): (a)The microeconomic theory of utility maximization states how a consumer chooses his…

Q: Consider a consumer with the utility function u(x,y) = r*y, where a and b are both strictly positive…

A: Consumer preferences satisfy local non-satiation if, for any bundle (x, y), and any open…

Q: QUESTION 4 Linguini and Colette consume only éclair (x,) and profiterole (x,). Linguini has utility…

A: "Since you have posted multiple sub-part questions, I can only answer the first 3 parts, the rest…

Q: Consumer spends $ 360 per week on two goods, X and Y. Px=$3 and Py= $2. His utility function is U =…

A: Utility function in economics represents the consumer’s preferences for goods and services. It is…

Q: Reid has the following utility function. U = 24m1/3d1/2  where U is Reid's total utility, m is the…

A: (a) U = 24m 1/3 d 1/2 – α (m+0.6 d -25) MU m = 1/3*24m-2/3 d 1/2 – α*1 MU d= ½ *24 m 1/3 d-1/2 -…

Q: John has a utility function u(x,y)= min{0.5x,1.5y} , for baskets containing the goods x and y. What…

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.

Q: f the total utility of consuming the first three pieces of pizza were 50,80, and 95 respectively ,…

A: Total utility refers to the total satisfaction derived from consuming a good. It is measured in…

Q: Let a person's utility function over two goods, X and Y, be given by, U(X,Y) = 3X0.4y0.6. Let the…

A: At Optimal bundle, slope of indifference curve is equal to slope of budget constraint

Q: Given a consumer has a money budget M = 360 and utility function U(X, Y)=X^(3/4)Y^(1/4). If she…

A: The condition which is needed for the utility maximization is: MUX/MUY = PX/PY where, MUX and MUY…

Q: A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good…

A: In utility maximization problem, a consumer attains his equilibrium or optimal consumption bundle…

Q: Assume the utility U of a pair of goods x and y can be determined by U(x, y) = 4xy. Furthermore,…

A: Given Information U = 4xyBudget constraint x2 + y2 = 1

Q: Consumeri's direct utility function is of the form: %3D where 1, x2 > 0 and a is a parameter. Assume…

A: Solution- ui(x1,x2)=x1α x2(12-α) To be convex preferences, uxi11 &lt; 0 Now, diff. the utility…

Q: Suppose a consumer has the following utility function: U(x1,x2) = alnx1 + (1-a)lnx2. The price of…

A: We have  Ux1, x2=alnx1+1-alnx2 When a= 1/2 or a=0.5 Ux1, x2=0.5lnx1+0.5lnx2             ............…

Q: 2) A consumer has the utility function U(Q₁, Q₂) = Q1Q2 and can buy good X at 1 TL a unit and good Y…

A: Choices that maximize utility, or those that satisfy the marginal decision rule, yield demand curves…

Q: Iate the iollowing nas an The consumer prefers good X three as much as good Y and is willing to…

A: 1) Utility function  measures preferences among different set of goods and services. Utility…

Q: Consider the utility function u(x, y) \x+2y+1/ (a) Find the equation for the marginal utility for x…

A: Disclaimer: Since you have posted a question with multiple sub-parts, I am providing you with the…

Q: Assume that Bob's utility function over beer x and pizza y is U(x,y) = 4x+12y. Which of the…

A:

Q: Roy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: PROBLEM (1) A consumer with income I=120 facing prices px = 4 and py = 8 for two goods X and Y (for…

A: The optimal consumption bundle is a toolkit that maximizes user usage, ensuring your budget level.

Q: A consumer has a utility function such that the marginal utility for good x is given by MUx-(2y/(3x)…

A: Here, the marginal utility of X is given 2y/3x and marginal utility of Y is given as 1/y.

Q: Answer the next questions on the basis of the following marginal utility (MU) data for products X…

A: Equilibrium is given by  MUx/ Px = MUy /Py

Q: Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90…

A: Marginal utility (MU) = Change in total utility (TU) / Change in number of repetitions (Q) When Q =…

Q: Romania has preferences represented by the utility function U(x, y) 2x and 2y. She consumes 10 units…

A:

Q: Suppose Carlos has to choose between purchasing jewelry and water. Which of the following is the…

A: Marginal utility is the utility from the next unit consumed of the same good. MU per dollar=MU of…

Q: Monica consumes only goods A and B. Suppose that her marginal utility from consuming good A is equal…

A: Given:  Monica consumes only two goods: Good A and Good B where A is on x axis and B is on y axis.…

Q: Suppose that Aji Fatou always consumes 2 spoons of sugar (X1)with each cup of coffee (X2). If the…

A: When a consumer always consumes goods in fixed ratios, the goods are Complementary goods.

Q: Given a utility function of 2 goods X and Y: U (X, Y) = X +Y4, the marginal utility of X [ Select ]…

A: According to the question, utility function is given as : U(X,Y)=X4+Y4 Marginal utility of good X=…

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

A: In this case, the consumer is ready to trade k units of good X for w units of good Y. This means…

Q: 1.3. Consider the following utility function for a consumer who consumes two goods, x1 and x2, and…

A: U(x1,x2) = ln(x1) + x2 where x1 = good 1 and x2 = good 2

Q: Consider a consumer whose preferences are represented by a utility function u(a, y) = a0.5 5. Are…

A: Utility function can be defined as the measure for a group of goods and services preferred by…

Q: Kai spends his income on lime (L) and ginger water (G). Lime is priced at $2, while ginger water…

A: PL = 2 , PG=1 and I = 30

Q: Consider the problem of a consumer who must choose between two types of goods, good 1 (2₁) and good…

A: Given function U=X1+X2Price of X1= P1Price of X2=P2Consumers income=M

Q: A consumer has S600 to spend on good x and y. Her preferences can be represented by the utility…

A: U(x,y)=100lnx+y Px=$10 Py=$5 M=$600 Optimal bundle is obtained when marginal utility per dollar of…

Q: A consumer consumes pizza and soda always in the fixed proportion of 3 slices of pizza (x) with 2…

A: We are going to represent the utility function for perfect complement and its maximisation to answer…

Q: Inayah is a rational consumer who consumes milk and cookies only from her monthly income of Rs.…

A: Quantity MU of  milk Rs.500 MU of Cookies Rs.300 1 400 450 2 350 200 3 200 150 4 100 100…

Q: Anthony spends his income on fishing lures (L ) and guitar picks (6 ). while a package of guitar…

A: PLEASE NOTE THAT AS PER THE GUIDELINE I HAVE SOLVED THREE SUB-PARTS AS REQUESTED WHIHC IS E,F, G.…

Q: Linguini and Colette consume only éclair (x1) and profiterole (x2). Linguini has utility function UA…

A:

Q: Mr. A derives utility from martinis (m) in proportion to the number he drinks: U(m) = m Mr. A is…

A: a) Mr. A's indifferent curve  will be that of perfect compliment (L-shaped) as they are consumed in…

Q: Suppose that a consumer with the utility function U X=5 and Y=10. If the prices of the two goods are…

A: U=X0.25Y0.75 Differentiate U w.r.t X to get MUx MUx = dU /dX =&gt; MUx = 0.25 (Y/X)0.75 Put X=5 and…