3pxSam has utility over goods x and y. His consumption of x is . What is his consumption of y?Oa.y =3Prb.y =3py2PY IО с.y =3pxPx IO d. y = 23-PY IO e.y =3Py

Now, by consumer utility theory, a consumer always tries to maximize his or her utility subject to…

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3px Sam has utility over goods x and y. His consumption of x is . What is his consumption of y? a. y = 3Py O b. y = 3pY %3D 2P I O C. y = 3px Px I O d. y= 2P 3-PY I O e. y = 3Py

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3px
Sam has utility over goods x and y. His consumption of x is . What is his consumption of y?
Oa.
y =
3Pr
b.
y =
3py
2PY I
О с.
y =
3px
Px I
O d. y = 2
3-PY I
O e.
y =
3Py

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11
Let the following table represents the total utility of a given consumer, in the cardinal utility approach. Q 1 2 3 4 5 6 7 TUX 8 14 18 20 20 18 16 TUY 6 10 13 15 16 16 14 MUX MUY MUX/PX MUY/PY Calculate the MUX and MUY and fill the table in the 4th and 5th rows. If the two products (X&Y) are free goods how many of X and Y should the consumer take to maximize utility? What is the maximum utility of X and Y if they are free? Let now price of X is 4 birr per unit and price of Y is 2 birr per unit. Calculate MUX/PX and MUY/PY and fill the 6th and 7th row. Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility? What is the total utility of X and Y? Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many of X and Y should the consumer buy to maximize utility?
Dear Expert Hand written solution is not allowed
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4please answer part a and b of quesrion #1
3.5 Marginal Utility and Consumer Choice Participation Question 7: • A consumer derives utility from consuming integer units of Good X and Good Y. See the table below for a total utility level at different consumption levels. What is the marginal utility of the second unit of Good X when the consumption of Good Y is at 3? Total Utility 1 Good X 2 Good X 3 Good X 1 Good Y 1 8. 2 Good Y 8 10 3 Good Y 10 11 A. 10 В. 5 С. 3 D. 2
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am. 130.
Consider the following graph. Assume that income increases, and the budget constraint line shifts to the right. The utility-maximizing choice on the original budget constraint is A. Enable ZoomPan
X2 Phil has preferences over olives (x₁) and ice creams (x₂) with a utility function, u(x₁, x₂)= x₁0.5+ x₂0.5. Suppose his income is $16 and the price of olives is $1 and the price of ice creams is $1, too. Which of the following is TRUE? O The utility level when he spends all of his income on good 1 is 8. O The optimal bundle Phil will choose to consume is (6,10). O The utility level at a bundle (1,16) is 11. None of the above. The optimal bundle Phil will choose to consume is (8,8).
The amount/limit of income a consumer has to spend on goods and services is known as O a budget constraint. wealth. O purchasing power. effective demand.