A consumer has preferences on Amazon original shows (x), and the composite good (y) described as u(x,y) = x2y (HINT: MUx = 2xy and MUy = x2) and she has I = $300 budget in total. Assume pY = $1, so we can think of y as the saved dollars in her pocket for other uses. Now, if she is not an amazon prime member, each show costs pX = $10, but if she is a prime member, then pX = $4. Amazon prime membership costs $120. (a) Draw her feasible budget set on the x-y axis for the no-prime-membership case, and the prime-membership case, separately. (b) If she chooses not to be a prime member, what is her optimal bundle (x,y) ? (c) If she chooses to become a prime member, what is her optimal bundle (x,y) ? (d) What is her optimal utility in (b)?in (c)? Would she want to become a prime member?

You go to the store in search of laundry detergent, to discover that they offer two varieties: Myst and Breez. Your preferences between Myst and Breez can be represented by the following utility function: U(M. B) = 16M + 32B Myst costs 4$ unit. Breez costs 10$ per unit for the first 5 units, but all units after 5 only costs $6. Find your Engel Curve for Breez.

PROBLEM (3) A consumer has preferences on Amazon original shows (x), and the composite good (y) described as u(x,y) = x'y (HINT: MUx= 2xy and MUy = x²) and she has I = $300 budget in total. Assume py= $1, so we can think of y as the saved dollars in her pocket for other uses. Now, if she is not an amazon prime member, each show costs px = $10, but if she is a prime member, then px (a) Draw her feasible budget set on the x-y axis for the no-prime-membership case, and the prime-membership case, separately. %3D $4. Amazon prime membership costs $120. (b) If she chooses not to be a prime member, what is her optimal bundle (x,y) ? (c) If she chooses to become a prime member, what is her optimal bundle (x,y)? (d) What is her optimal utility in (b)?in (c)? Would she want to become a prime member?

Şeyma has the following utility function: U(x, y) = x/2y1/2 and faces the %3D budget constraint: M = Pxx + P,y. Suppose M = 120, P, = 1 and P = 4. Find the optimal x and y.

Beans and doughnuts: The consumer receives positive benefits from the consumption of beans (B) and donuts (K). Utility function of the consumer is the following: U(B,K) = 100∙B^0.25 · K^0.75 The price of beans (can) is ISK 2,000. but the price of a donut (box) is ISK 4,000. Consumption restrictions are placed on the consumer since his income is ISK 400,000. Put on all form donuts on the x-axis and beans on the y-axis. a) Show an equation for the bean's success rate for a single donut in light of the utility function. Draw the equivalence curve on a picture and explain what the equation is performance ratio is stated at each point on the equivalence curve. Explain with the concept of the efficiency ratio of the curvature of the equivalent curve. b) Find the most efficient consumption combination and draw on the diagram. c) The government decides to support the consumption of beans so its price drops to 1,000. Who is the most economical consumption combination based on the changed price…

You have preferences u(x,y) = xy over games (X) and videos (Y) you can buy on a platform and a $360 budget, with prices px = 9 and py = 6. How much would you be willing to pay (at most) as a subscription fee for each of the following plans (you can buy any amount of Y in each plan at the original price, unless otherwise stated): (a) Plan A : You can buy (any amount of) X at a discounted price px = 4(b) Plan B : You are given 40 units of X for free, but you cannot buy any more of X. (surely can buy any amount of Y)(c) Plan C : You are given 30 units of X for free, but you cannot buy any more of X; you also have a discounted price for good Y; py = 4.

Two friends, Minrui and Jing, share a flat and both consume internet (i) and all other goods (g). The utility function for Minrui is U_m=i^(0.3)g^(0.7) whereas the utility function for Jing is U_m=i^(0.1)g^(0.9). Considering that the income of both individuals are the same $500 and that the prices are p_i = $80 and p_g = $5, what would be the optimal allocation of public good (i) and private good (g)? Interpret your answer.

Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by Your marginal utility function for apples is . Your marginal utility function for oranges is U (A, O) = AO³ MUA = 0³ MUO 3A0² . Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. = When you set up the optimal decision rule for your consumer problem, which of the following statements best describes how much you will buy of apples and oranges at your consumer equilibrium? For each peck of apples, you will buy 1/3 pounds of oranges. For each peck of apples, you will buy 1 pounds of oranges. O For each peck of apples, you will buy 3 pounds of oranges. O For each peck of apples, you will buy 6 pounds of oranges.

Julie, who has $64, consumes only two goods: whistles (w), which cost $6 each and xylophones (x), which cost $7 each. Her preferences over these two goods can be represented by the utility function u(w, x) = 3w0.75 0.25 a) What is the optimal number of whistles for Julie to consume given this scenario? b) What is the level of utility Julie attains at this level of consumption? c) Suppose now that the price of whistles rises from $6 to $7. What is the magnitude of this price effect on whistles?

3*. Ms Smith likes to drink wine; in particular, a french bordeaux (f) at $40 per bottle and a California varietal wine (c) priced at $8. She allocates $600 to these two each month; and her utility is: U(ƒ, c) = ƒ²/³ c¹/³ (a) Write out her (constrained) utility maximization problem. Solve for the optimal consumption of wine f and c.