Consumer C is currently spending all of their income and consuming at a point where MRSab = -2. Prices in the economy are pa = 3 and Pb = 3. Given this information, we know that C values good [Select] relatively more than the market does, and thus should [Select] [Select] their consumption of good b.

Find the expenditure function corresponding to utility function u(x₁,x₂) = ln(x₁ +a)+ln(x₂+b). a.e(p₁u) = 2√P₁P₂)eu/2 b.e(p,u)=e¹(√P₁P₂)+ap₁ + bp₂ Ⓒc. e(p₁u) = 2(√P₁P₂)eu/2-ap₁-bp₂ d.elpu)=e"√√P₁P₂

MUA/PA = zA = 16 − 3x           MUB/PB = zB = 14 − 2y,    where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $9 to spend on A and B—that is, x + y = 9.

Please no written by hand and no image Consumer B has income Y=100, and prices for goods a and b are Pa=2 and Pb=3. If B spends all of their income and buys a=23 units of a, how much good b do they buy? (Just enter the number, no units)

Suppose that price of good X falls by 50 % while price of Y falls by 25% and Income falls by 50%. Then which of the following is correct? Budget line becomes steeper and consumer is not able to afford some bundles that were affordable before. Budget line becomes flatter and consumer is not able to afford some bundles that were affordable before. Budget line becomes steeper and consumer is able to afford new bundles that were not affordable before. Budget line becomes flatter and consumer is able to afford new bundles that were not affordable before.

An individual's utility is given by: U (q1, q2) = a(q1)+ b(q2), where a and b are constants. When prices are P1= 4 and P2=1, the individual can only maximize utility by purchasing all good #2. When the prices are P1=3 and  P2=1, the individual can only maximize utility by consuming all good #1. Which of the following statements below must be true? A.  Goods #1 and #2 are complements B.  a < b C. 3 < a/b <4 D. The indifference curves exhibit diminishing MRS

A consumer has a budget of $3000 in a given period, and wishes to buy two goods, X and Y, so as to maximise his utility. The price of good X is $5 and the price of good Y is $2, and his MRS is given by the formula 2Y/X. How many units of good X will he buy in that period?

Lucas has $40 per week that he can spend on lemon soda (X) and chips (Y). The price of the lemon soda (PX) is $2 per bottle, and the price of the chips (PY) is $4 price  Write down Lucas’s budget constraint. Draw the budget constraint on the graph below. Make sure to indicate the intercepts and the slope of budget constraint. Label it as BC1.    Provide an economic interpretation of the slope of the budget constraint BC1 Suppose Lucas’s income decreases to $12 per week, and the price of lemon soda and chips remain the same. Write down Lucas’s new budget constraint. Then draw his new budget constraint on the same graph above.  Make sure to indicate the intercepts and the slope. Label it as BC2.    Suppose Lucas’s income remains to be $40 per week and the price of chips remains the same, but the price of lemon soda (PX) increases to $5. Write down Lucas’s new budget constraint. Then draw his new budget constraint on the same graph above. Make sure to indicate the intercepts and the…

Steve's utility for socks (q1) and other goods (q2) is given by U(q1,q2) = 10q10.1 0.1q² 0.9 The price of the composite good is p2=1 and the price of a pair of socks is p1=2. Steve's income is Y=100. Every year, Steve's mom buys him 20 pairs of socks. How many dollars is the equivalent variation of the $40 that his mom spends on socks every year?

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?