2. A consumer has a utility function u(x, y) = xy⁰.5. (a) What is her demanded bundle under the budget constraint in 1(a)? (b) What is her demanded bundle under the budget constraint in 1(c)? (c) Is the consumer better off with government intervention?

Which of the following conditions should hold for an interior optimum? Px MRSXY and PxX + PyY < I Py MUx and MUy should be maximized and Px X + PyY = I Px MRSXY and PxX + PyY = 1 Py MRSXY should be maximized and PxX + PyY = I

According to the equation, sales (Y, measured in $1,000 per month) and advertising (X, measured in $1,000 per month) are related as follows:   Y=40+3X Suppose you are told that the sales committee has set an ambitious goal of $64,000 for next month’s sales. The treasurer needs to know how much to budget for advertising, and you have to come up with the answer.

Question Solve the following maximization problem graphically. P(x, y) = 16+ x + 4y; subject to: Provide your answer below: f(x)= 4x + 6y≤ 72 4x + 2y 2 24 x > 3 y> 4

It is proven mathematically that indifference curves are convex due to:(a) rising marginal rates of substitution.(b) the inverse association between the quantity demanded and the price.(c) costs decreasing in value.(d) the marginal rates of substitution being negative.

If the utility function (U) between food (F) and clothing (C) can be represented as U = F*C, then which combination of food and clothing will a rational consumer choose? a. (F, C) = (9, 25) O b. (F, C) = (25, 4) O c. (F, C) = (4, 16) d. (F, C) = (4, 25)

A consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each of the following scenarios, identify which, if any, of the standard assumptions of preferences are violated. (a) The consumer will never eat more than ten kilograms of carrots per day. (b) The consumer cares only about the total weight of the two vegetables consumed, and always prefers more to less. (c) The consumer cares only about the product of the respective weights of the two vegetables consumed, and always prefers a greater product to a lesser one.

Higher Indifference curve means: (a) Consumer has got increment in income (b) Higher utility (c) Prices of product have reduced

Question 2 (a)

（D）Detailed calculation steps