Grapes and bananas are perfect complements for Jane and Betty. Jane eats one grape per three bananas.; Betty eats three grapes per one banana. Once they go to sports for hours, Jane had 20 grapes and 10 bananas and Betty had 10 grapes and 20 bananas. (assume that grapes and bananas can be divided into half) 1. Draw the Edgeworth box for Jane and Betty. Place Jane at the origin and Betty on the upside-down.

Antonio likes to have coffee (C) and donuts (D) for breakfast every morning. He likes to dip his donuts into his coffee, so for every cup of coffee, he eats one and a half donuts. In economic terms, we can say he views one cup of coffee as a perfect complement to one and a half donuts. The price of a cup of coffee is $4.5 and the price of one donut is $2. His budget for breakfast this month is $75. (a) Write down a utility function that represents Antonio's preferences over (cups of) coffee (C) and donuts (D). (There may be many functions representing the same preferences, so you can choose either of them.) (b) How many cups of coffee (C) and donuts (D) is he going to consume? (Hint: the first order conditions will not help; draw the budget constraint and the indifference curves and look at the highest indifference curve that has a point in common with the budget constraint). (c) What is the exact value of Antonio's indirect utility for the utility function you chose in (a)?

Jane has 11 liters of soft drinks and 10 sandwiches. Bob, on the other hand, has 9 liters of soft drinks and 10 sandwiches. With these endowments, Jane's marginal rate of substitution (MRS) of soft drinks for sandwiches is 5 and Bob's MRS is equal to 7. Draw an Edgeworth box diagram to show whether this allocation of resources is efficient. If it is explain why. If it is not, what changes will make both parties better off? 1.) Using the three-point curved line drawing tool, draw an indifference curve for Jane when consuming 11 liters of soft drinks and 10 sandwiches. Label this curve Uj. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Bob when consuming 9 liters of soft drinks and 10 sandwiches. Label this curve Uğ. Carefully follow the instructions above, and only draw the required objects. Sandwiches 0₁ Jane 11 Soft drinks Bob OB 10 Q

Today, you've decided to treat yourself to some dessert, so you go to the store to buy a doughnut or a cupcake. The utilities of one doughnut and one cupcake are 1212 and 2424, respectively.Given that the price of one doughnut is $6$⁢6, what should be the price of a cupcake to get the same utility per dollar spent? Enter your answer in the box below and round to two decimal places if necessary.

Multiple choice question Joe and Rita each have some milk and cookies (Milk on the horizontal axis). Joe's MRS ofcookies for milk is 2. Rita's MRS of cookies for milk is 4. Which of the following statements isTRUE?a) No gains from trade are possible.b) Both Rita and Joe can be made better off if Rita gives Joe some cookies in exchange for milk.c) Rita and Joe are on the contract curve.d) Both Rita and Joe can be made better off if Joe gives Rita some cookies in exchange for milk.

Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch. With her income of $182 she buys 11 boxes of kiwis and 8 bunches of bananas. Hugo, who lives in Sydney, with an income of $175, consumes kiwis at a cost of $7 per box and bananas at a cost of $12 per bunch. Assuming their preferences are identical, then (select one) a) Madeline would prefer Hugo's consumption bundle to her own. b) Hugo would prefer Madeline's consumption bundle to his own. c) They would both be indifferent between their own bundles and the other's. d) Each prefers his/her own bundle to that of the other. e) We can't make any of the above statements without more information.

Please explain in detail part a to d.

8. Andrew and Vladimir are neighbours who enjoy consuming caviar. The demand curve for caviar for Andrew and Vlad are given as follows: Andrew: Vladimir: p = 40-q. p = 80 - 4q. If Andrew and Vladimir are the only two consumers of caviar the market demand curve is kink at the price equals to: a. p = 40 b. p = 20 c. p = 10 d. p = 25

Let the following table represents the total utility of a given consumer, in the cardinal utility approach. Q 1 2 3 4 5 6 7 TUX 8 14 18 20 20 18 16 TUY 6 10 13 15 16 16 14 MUX MUY MUX/PX MUY/PY Calculate the MUX and MUY and fill the table in the 4th and 5th rows. If the two products (X&Y) are free goods how many of X and Y should the consumer take to maximize utility? What is the maximum utility of X and Y if they are free? Let now price of X is 4 birr per unit and price of Y is 2 birr per unit. Calculate MUX/PX and MUY/PY and fill the 6th and 7th row. Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility? What is the total utility of X and Y? Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many of X and Y should the consumer buy to maximize utility?

Problem 3: Vlad's orchids Vlad loves vases with orchids. More precisely, he loves vases with three orchids in each. When his vases have less than three orchids each, every time he receives an orchid his utility goes up by 1, while it does not change if he receives a vase. When his vases have more than three orchids each, every time he receives a vase his utility goes up by 3,¹ while it does not change if he receives an orchid. a) Draw the indifference curves of Vlad (2 are enough) b) Write Vlad's utility function. c) Suppose now that Vlad has a fixed budget for vases and orchids and that a tax on orchids is imposed. Will Vlad buy more vases, less vases, or the same as before?