Jane's utility function is U=X^2Y^8 , with marginal utilities being  MUX=2XY^8 and MUY=8X^2Y^7. Prices are PX=1 and PY=3. Jane's income is I=120. What is the optimal consumption of X?

Rhea is determining how many gallons of milk (M) and loaves of bread (B) to purchase. Use the information in italics to answer the bolded question below: Rhea's marginal utility function for milk: MUN • Rhea's marginal utility function for bread: M = 0.5M-2 MUB = 0.5MB-1/2 • Rhea has $60 to spend on bread and milk. • The price of milk (Pm) is $3/gallon of milk. • The price of bread (Pb) is $1/loaf of bread. • For the sake of computation, assume that bread is the horizontal axis good (i.e., good X) and milk is the vertical axis good (i.e., good Y). When you set up the optimal budget decision rule for Rhea's consumer problem, which of the following statements best describes how much she will buy of both goods at her consumer equilibrium? O For each gallon of milk, Rhea will buy 1/3 loaf of bread. O For each gallon of milk, Rhea will buy 3 loaves of bread. For each gallon of milk, Rhea will buy 1 loaf of bread. O For each gallon of milk, Rhea will buy 6 loaves of bread.

For the utility function U = Qx0.28Q (1-0.28) and the budget 137 = 11Qx+6Qy find the CHANGE in optimal consumption of X if the price of X increases by a factor of 1.6. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Let U(x, y) = 3x + y be the utility function of a consumer, whohas a budget of I. As a function of I, find the consumer’s Walrasian demand when the prices are px = py = 1. The price of good x increases to 2, find the new Walrasian demand for the new prices px = 2 and py = 1. Decompose this change into an income and a substitution effect.

For the utility function U = Qx0.46Qy(1-0.46) and the budget 100 = 11Qx + 11Qy find the CHANGE in optimal consumption of X if the price of X increases by a factor of 1.5. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Assume that bob has a Cobb Douglas utility function U (F,H) = A F^0.7 H^0.3 over Food F and Housing H. How much does Bob spend on Housing and Food when the price of Housing is 10$ and income is 200 ?

QUESTION 1 For the utility function U = Qx0.50Qy(1-0.50) and the budget 122 = 8Qx + 14Qy find the CHANGE in optimal consumption of Y if the price of Xincreases by a factor of 1.7. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).

Victoria has the following utility function: U(x,y) = x½y½ and faces the budget constraint: M = Px + Py. Suppose M = 120, Px = 4 and Py= 1. Find the optimal x and y.

QUESTION 1 For the utility function U = (Qx0.5+Qy0.5)² and the budget 133 = 8Qx + 10Qy find the CHANGE in optimal consumption of Y if the price of X increases by a factor of 1.1. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).

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.