Goluki's preferences are given by the following utility function:1/3U(q1, 42) =1/3+ 92where q, is the number of cups of tea and q2 is the number of cookies.Select all that applies:a) Her preferences satisfy "more is better"b) Her indifference curves are L-shapedc) Her income-consumption curve is upward sloping but not a straight lined) Cookies is a normal good for here) Her demand function for cookies is a downward sloping but not a straight linef) Her Engel curve for tea is upward sloping straight lineg) none of the above

Goluki's preference are given by U(q1, q2) = q11/3 + q21/3 Where, q1 is the number of cups of…

Answered: 1/3 U(qı, q2) = qi'° + ", 1/3 where q,…

1/3 U(qı, q2) = qi'° + ", 1/3 where q, is the number of cups of tea and q2 is the number of cookies. Select all that applies:

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 6P

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Mariah consumes music downloads (M) and concert tickets (C). Her utility function is giveh by U = 0.5M? + 2C². a. Using calculus, what is the marginal utility of music downloads? b. Using calculus, what is the marginal utility of concert tickets? Write the equation for the MRSMC (i.e., the MRS of C for M; M is increasing, C is С. decreasing). d. Would the bundles of (M = 4 and C = 1) and (M = 2 and C = 2) be on the same %3D %3D %3D %3D indifference curve? How would you know? e. Calculate the MRSMC when M = 4 and C =1 and when M = 2 and C = 2. Explain why the %3D %3D values of MRSMC differ across these two bundles. f. Based on your answers above, are Mariah's indifference curves convex? Explain using the values calculated. er this
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Shanise has the following utility function: UX.Y) = X +Y where X is her consumption of candy bars, with price Px = $2.25, and Y is her consumption of espressos, with Py = $6.50. Derive Shanise's demand for candy bars and espresso. Shanise's demand of candy bars and espressos is O A. X= 1.0021 and Y = 0.5231. O B. X=0.330l and Y = 0.040I. O C. X=0.2461 and Y = 0.040I. O D. X= 0.8331 and Y = 0.6831. O E. X=0.0611 and Y =0.5231. Assume that Shanise's income is I = $75. How many candy bars and how many espressos will Shanise consume? Shanise will consume |candy bars and espressos. (Enter your responses rounded to two decimal places.) What is the marginal utility of income? The marginal utility of income is- (Enter your response rounded to two decimal places.)
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Suppose that Dale consumes only coffee and cheese, both of which have diminishing marginal utility. For each of the following cases, determine whether Dale should 1Consume more coffee and less cheese, or2Consume less coffee and more cheese: 1.The marginal rate of substitution of cheese for coffee is 3 (i.e., the marginal utility of cheese is three times the marginal utility of coffee), while the price ratio is 2 (i.e., cheese costs twice as much as coffee). 2.The marginal rate of substitution of cheese for coffee is 1 (i.e., the marginal utility of cheese is equal to the marginal utility of coffee) while the price ratio is 2 (i.e., cheese costs twice as much as coffee). 3.The marginal rate of substitution is initially equal to the price ratio, but the price of coffee increases. 4.The marginal rate of substitution is initially equal to the price ratio, but the price of cheese decreases. 5.The marginal rate of substitution is initially equal to the price ratio, but Dale enters exam…
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