Given the following Cobb Douglas Utility function u(x1, x2) = x1cx2d.What is Marginal Rate of Substitution MRS x1, x2 ?

Suppose the preferences of an individual are represented by a quasilinear utility function: U(x, y) = In(x) + 3y a) Initially, Px=1, Py=6 and 1=102. Then, the price of x increases to 2 (Px=2). Calculate the changes in the demand for x. Please also calculate the substitution and income effects of the change in Px on x. (Hint: since the change in price is not small, you cannot use the Slutsky equation. You need to have numbers instead of functions as the answer.)  B)Please also calculate the substitution and income effects of the change in Pr on y. C) Instead of doubling to 2, suppose Px is only increased by a small amount. Use the Slutsky equation to find the substitution and income effects of the change in the price of x on x. Compare your result to (a). Explain why there's no income effect of the change in Pa On X. Show your result on an indifference curve. d) Use the Slutsky equation to find the substitution and income effect of the change in Px on y. Compare your result to (b).

Suppose a consumer utility function is given by U(X,Y)=XY+8X the price of good X and Y are 2 birr and 6 birr respectively the consumer has total income of 160 birr to be spent on two goods A) find the utility maximizing quantities of good X and Y B) find MRXSY at equilibrium

Suppose your utility for goods x1 and x2 is represented by the following utility function:  U(x1,x2)= x11/5  x24/5 a) What is your marginal rate of substitution, MRS12? b)  If the price for good x1 is p1 = 2, the price for good x2 is p2 = 4, and your available income is m = 20, write down your budget constraint. c) Using the prices and income given at b) above, find your optimal consumption choice bundle (Marshallian demand) and its corresponding utility level. d) Illustrate your optimal consumption choice on a graph. e) For the prices given in b), what income would you need to achieve a utility level of 25?   PLEASE ONLY ANSWER PART C, D AND E

A consumer has GH¢600 to spend on two commodities, A and B. Commodity A costs GH¢20 per unit and Commodity B costs GH¢30 per unit. Suppose that the utility derived by the consumer from x units of Commodity A, and y Commodity B is given by the Cobb-Douglas utility functionU (x, y) = 10x0.6y0.4a. How many units of each commodity should the consumer buy tomaximize utility?b. Is the budget constraint binding?

Sally consumes two goods, X and Y. Her utility function is given by the expression U = 2XY3. The current market price for X is $20, while the market price for Y is $10. Sally's current income is $500. a. Write the equation for Sally's budget constraint. What is the slope of her budget line? b. Determine the X,Y combination which maximizes Sally's utility, given her budget constraint.

James Bond consumes two goods: vodka (x) and martini (y). His preferences are described by the utility function U(x,y) = (1x+9)y. Calculate the value of the marginal rate of substitution in the point (2;2). Please use 2 decimals in your answer.

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Assume the price of good A goes up and the consumer decreases purchases of good A and decreases purchases of all other goods. How might you explain this lack of substitution into other goods? The indifference curve for good A and other goods must be linear The income effect is greater than the substitution effect Good A is a luxury item Good A is inferior

A consumer’s utility only depends on the consumption of goods A and B according to the following Cobb-Douglass utility function: U(A, B) = A1/4 B 3/4. The price of goods A and B are $20 and $40, respectively. The consumer has a budget of $1200 that he can use to consume the two goods. a. Write down the budget constraint and plot it. b. Calculate the optimal bundle and maximized utility for the consumer. c. A new tax of $10 is imposed on the price of good B. Compute the new optimal bundle of good A and B for the same consumer. What is the utility loss due to the tax? d. Show that the consumer would prefer a lump sum income tax that raises the same revenue as the tax on good B. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.