A consumer has the following utility function: U(X,Y)= 400X2/5Y3/5 Suppose that the price of a spa day (x) is £200 and the price of a city break (y) is £300 Find the number of spa days and city breaks that minimise expenditure if 12,800 units of utility are obtained. Also calculate the consumer's minimised expenditure

Q: 1. Prove if the indirect utility function is quasiconvex The indirect utility function: V(p,w) =…

A: Indirect utility capacity is gotten from direct utility capacity with boundaries of use and cost of…

Q: Mort consumes only beer and sausages. His income is $100. Beer costs him $0.50 per can and sausages…

A: Utility maximization refers to the process where individuals aim to allocate their resources in a…

Q: what is the derivative of the utility function UU = log (100-2PPii) + log(PPjj+PPdd) with respect to…

A: The degree of satisfaction that a consumer has after consuming a combination of items or services is…

Q: Suppose a consumer had a utility function given by: U = X²Y0.5. If the price of Good X (Px) is $3…

A: The utility function is given as The price of good X is $3.The price of good Y is $6. The budget for…

Q: a) Graphically derive Vivi’s demand for tea when her income is $60 and the price of crumpets is $2.…

A: The utility function for the above is the Rawlsian utility function.    For such a utility function…

Q: Calculate the marginal rate of substitution (MRS12) for the following utility function: U(91,92)…

A: Marginal rate of technical substitution is the rate at which one input is the substituted for other.

Q: The utility function for Morris is U = min{4M, 2T}, where M is pints of milk and T is cans of tuna.…

A: In equilibrium: 4M = 2T  [ as utility function is of perfect complement hoods] T = 2M Substituting…

Q: Paige has the utility function U(x, y) In(x) + 4y Do not worry about corner solutions when answering…

A: Utility function : U(x,y)=lnx+4y The indirect Utility function shows the maximum utility that can be…

Q: Tom's indirect utility function is (a) V = I Ps+2pg (b) V = (c) V (d) V = = (e) V = I Ps+Pg I…

A: Tom's utility function: This utility function shows that the salad (s) and green juice (g) are…

Q: Given an individual’s current consumption patterns, we know that the person is consuming in such a…

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Q: When utility function  U(q1, q2)=min{ 25.6 q1,  12.5 q2} and  q1= 99 and q2= 198 are given, find…

A: The Utility function can be represented by   U(q1, q2)=min{ 25.6 q1,  12.5 q2} In general, if…

Q: Consider the utility function: U(x,y)= -4(3x-12)² - (2y-10)² Determine the marginal utility for…

A: The marginal utility can be defined as the extra utility received from the consumption of one more…

Q: For the utility function U = (Qx0.5+Qy0.5)2 and the budget 190 = 5Qx + 12Qy find the CHANGE in…

A: The utility function is given as The budget constraint is given as The price of X is increased by a…

Q: Summer break is approaching! Suppose you derive utility from days spent traveling on vacation…

A: Given: The utility function over two goods is: The budget constraint is:  To Find: The demand…

Q: You have £20 per week to spend, and two possible uses for this money: telephoning friends back home,…

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Q: Consider the following utility functions. G(x,y) = x² (1+ y) H(x,y) =In(x) + In(2y) +20 L(x,y) =…

A: A homothetic function is a mathematical function that exhibits a property called homotheticity. In…

Q: Cost of living will become more expensive fuelled by increases in food and electricity bill. Suppose…

A: Change in price has effect on quantity demanded and known as Total effect which further consists two…

Q: Greg has the following utility function: u = x1^0.361x 2^0.642. He has an income of $74.00, and he…

A: Utility function is the function that shows or represents the level of satisfaction or degree of…

Q: s utility function is U=X+ 25XZ + Z. Let the price of good X be px, the price of good Z be…

A: Given utility function- U= X+25XZ+Z

Q: Ayana is pitching an idea for a startup company that makes and sells solar-powered phonechargers…

A: ***Since the student has posted a question with multiple subparts, so the expert is required to…

Q: For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y)…

A: We know,  MRS = MUx / MUy Given (x, y) = (2,3)

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x, x2 - 2x – x3/2, when the weekly…

A: Given that x1 = 132 and x2 = 760

Q: maddy is a single mom with a weekly budget of $100. She can spend her weekly income on food and…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

Q: alculate the marginal rate of substitution (MRS12) for the following utility function: U(q1,q2)=…

A: Marginal rate of substitution refers to the slope of an indifference curve. It is calculated as the…

Q: Question 1 Jennifer is a single mom with a weekly budget of $100. She can spend her weekly income on…

A: Utility function : U(f , d  ) = f0.9d0.1 Price of food = 1  Price of diaper = 0.5  Weekly Budget =…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 122= 8Qx + 8Qy find the CHANGE in optimal…

A: Utility function : U = (Qx0.5 + Qy0.5)2Budget Constraint : 122  = 8Qx +  8 QyTherefore , Price of x…

Q: Consider the following utility functions. G(x,y) = x² + 3y² H(x,y) = (x+1)¹/2 + y + 1 L(x,y) = x ey…

A: The function for which the MRS decreases as good x increases, have strictly convex preference.

Q: 3.4 Let c represent calories (or cigarettes), with u the strictly concave (immediate) utility of…

A: Step 1: To find the optimal level of consumption from the perspective of date 𝑡, we need to…

Q: Consider the following utility functions. (x,y) = −1 / [ min (6x, 2y)+1] ■(x,y) = min(6x,6y)² (x,y)…

A: Utility functions symbolizes the pleasure or satisfaction that customers feel after using a product…

Q: When utility function  U(q1, q2)=min{ 34.6 q1,  17 q2} and  q1= 33 and q2= 60 are given, find…

A: A utility function represents the preferences of a consumer if the consumer has a preference…

Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 125 = 11Qx + 14Qy find the CHANGE in…

A: Utility function : U = (Qx0.5 + Qy0.5)2Budget Constraint : 125  = 11Qx +  14 QyTherefore , Price of…

Q: The goal of this exercise is calculating the exact amount of x₁, x, XC

A: The income and substitution effects are two concepts in economics that help explain the change in…

Q: An individual's utility function is given by U = 260x₁ + 310x₂ + 5x₁x₂ - 10x² – x² - where x₁ is the…

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Q: Maya is doing her undergrad at Queen's University. She loves donuts and chocolate chip cookies…

A: a) When the price of CCC (chocolate chip cookies) is $1, which is the same as the price of donuts,…

Q: Pele enjoys coffee (C) and tea (T) according to the function U(C,T) = 6C +8T (a) What does her…

A: The price of tea is PT = $3 and the price of coffee is PC = $2. The income(Y) or the budget that…

Q: Rui's utility function is U=X+4XZ+Z. Let the price of good X be px, the price of good Z be…

A: Hicksian and Marshallian demand are two contrasting ways of looking at consumer behaviour. Hicksian…

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: Upon graduating from UT this May, you take on a management position working at UtMax theater. You…

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Q: Greg has the following utility function: u=x10.75x20.25. He has an income of $68.00, and he faces…

A: Utility function : U = x10.75x20.25  Income = 68  P1 = 8  P2 = 4    Equivalent Variation refers to…

Q: Consider the following indirect utility function: v(p, w) = w2 /4p1p2 How can we recover the…

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Q: For the utility function U-Q,0.370,(1-0.37) and the budget 194-140x+6Qy find the CHANGE in optimal…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…