Determine the maximum utility if the production function is P = 20 – x2 + 10x – 2y2 + 5y, the prices of inputs x and y are 2 and 1, respectively, and the unit price of product P is 5.

If Jackson's preferences over consumption bundles can be represented by the utility function U(X, Y) = 2X + Y, what will Jackson's optimal bundle, (X*,Y*), be when the price of X is px = 3, the price of Y is py = 1, and Jackson's income is I = 150? (a) (110,0) (b) (0, 150) (c) (0,80) (d) (50, 0) (e) (30,60)

A consumer has set of budget of $800 for the consumption of good X a d Y. The price of Good X is $10 and the price of good Y is $40.The consumer has a utility function given by U (X,Y) = X(0.80)Y(0.20).Find the optimal soloution using a methof that does not involves equations and illustrate the soloution?

A consumer has the following utility function U (X1, X2) = (x1 + 3) (x2+4) Prices of the two goods X₁ and x₂ respectively are p₁ and p2 and the consumer has income m. We assume that all prices and income are strictly positive. Furthermore, throughout this question we assume that m is high enough so that both goods are consumed in strictly positive amount in equilibrium. (a) Solve the consumer's optimization problem and express the demand for the two goods in terms of prices and income. (1) Compute the missing values of elasticities in the following table assuming M = 10, p₁ = 2, and p2 = 1. Show your work. Income elasticity Absolute value of own price elasticity Cross price elasticity X₁ T≤ X₂ (b) While x2 is produced locally, x₁ is transported from a different region. Assume P₂ = 1. Building a new railroad (that connects the regions) will reduce transportation cost which in turn will reduce the price of good 1 from p₁ = 2 to p₁ = 1. Railroad will be funded by taxes which will reduce…

Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.

A consumer facing a budget constraint will typically choose a combination of goods and services that: a) Provides the highest total utility b) Minimizes the total cost of consumption c) Equalizes marginal utility per dollar spent on each good d) Matches their preferences regardless of budget limitations

Each week, an individual consumes x and y of two goods, and works for 1 hours. These three quantities are chosen to maximize the utility function U(x, y, l) = a ln(x) + ß ln(y) + (1 − a − ß) ln(L − 1), which is defined for 0 ≤ 1 0, and where a, ß > 0 and a + ß < 1. The individual faces the budget constraint px + qy = wl, where w is the wage per hour. • State the optimization problem • Solve completely for the utility-maximizing levels of x, y, and I

Using the homogeneity of indirect utility, which of the following cannot be an indirect utility function? (a) V: = (b) V: = (c) V: = [2 PzPy I Pz+Py p²+p² (d) V = 1 Pz

The table below shows the production of all goods by the nation of Lemonaidia in 2013 and 2014 with their respective prices. 2013 Output 2013 Prices $1.00 per glass Lemonade 200 glasses Cookies 100 cookies $2.00 per cookie What was real GDP in 2013 using 2013 prices? 2014 Output 200 glasses 90 cookies 2014 Prices $1.00 per glass $2.50 per cookie

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