(d) If we gave him more clothes, his utility will increase.

Peter's preferences over two goods, x and y, are represented by the utility function u(x, y) = y + 2x. a) Peter is currently consuming bundle A = (2,4) with 2 units of good x and 4 units of good y. Calculate his current level of utility from consuming this bundle. b) Write the expression the indifference curve representing Peter's current level of utility (i.e., the one you found in part (a). Next draw this indifference curve. c) By looking at the indifference curve you drew in part (b), answer the following questions: Does Peter like good x? Good y? Explain. What can you say about the marginal rate of substitution of good x for y, MRSxy? Is it positive? Negative? Constant? Increasing? Decreasing? Interpret/explain your answer in terms of the tradeoffs Peter is willing to make between goods to keep the same utility level. d) On the same graph you drew in part (b), draw the indifference curve for a utility level of 10. Plot and label in the graph bundles B = (1,2), C = (1,6), and D =…

Gino derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as follows:U(Qc,Qd) = (Qc)(Qd)The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as follows:MUc = Qd MUd = QcGino has an income (I) of £120 and the price of carrots (Pc) and donuts (Pd) are both £1. - suppose a lump sum tax of the same dollar amount, of a 1 pound tax per unit on donuts,  is levied on Gino. what is Gino's utility maximising market basket? - why would Gino prefer a per unit tax over the lump sum tax, or vice versa, or why is he indifferent between the two taxes.

You consume music (M) and concert tickets (C). Your utility function is U(M, C) = M1/4C3/4. The marginal utility for concert tickets, MUC is MUC =3/4C-1/2M1/4 and the marginal utility for music, MUM is MUm = 1/4C3/4M-3/4   (a) Calculate MRSMC using only the given marginal utilities. (b) Solve for the utility of bundle A where M = 16 and C = 16. Solve for your utility at bundle B where M = 128 and C = 8. Are the utilities the same? (c) Calculate MRSMC at bundle A and at bundle B. Are they the same? (d) Are your indifference curves convex? Draw the ICs. Make sure to label the quantities of the consumption bundles, the axis, and the MRS at those bundles.

Gino derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as follows:U(Qc,Qd) = (Qc)(Qd)The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as follows:MUc = Qd MUd = QcGino has an income (I) of £120 and the price of carrots (Pc) and donuts (Pd) are both £1. - what is Gino's budget line and what quantities of Qc and Qd will maximise Gino's utitlity? - holding income and Pd constant, what is Gino's demand curve for carrots? - suppose a tax of 1 pound per unit is levied on donuts. how will this alter Gino's utility maximisinzing market basket of goods?