Mike has two identical brothers. Each of them have the same utility function below. If Mike and his brothers are the only people in the market, what is the aggregate demand at each price of X below? (Each of their income is $100 and the price of Y is always $1).   U (x,y) = x^2/5 Y^3/5   Price of X=$8 Price of X=$4 Price of X=$2 Price of X=$1

An individual's utility function is given by: U (q1 , q2) = q11/2 . q2 Suppose we know that the individual is maximizing their utility by consuming 9 units of good #1 (q1=9) and six units of good #2 (q2=6). If the current price for good #1 is $1 (p1=1), what must be the price of good #2 (p2) and what must be the individual's current income (y) available to spend on the two goods? a.) p2 = b.) y=

Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. The consumers have the following utility functions: UA(X1A,X2A)=X1A+3x2A; UB(X1B,X2B)=x1B +X2B. Consumer A is initially endowed with 4 units of good A and no unit of good 2, that is, consumer A's initial endowment is (W1A,W2A)=(4,0). Consumer B is initially endowed with 3 units of good 2 and no unit of good 1, that is, (WIB,W2B)=(0,3). In order to implement the allocation (x1A,X2A)=(0,1), (x1B,X2B)=(4,2) as a Walrasian equilibrium, what transfer of wealth should we make between the consumers if good 1 is the numeraire, that is, if p1 =1? O a. An amount 7 of wealth should be transferred from consumer A to consumer B. O b. None of the other answers. An amount 3 of wealth should be transferred from consumer A to consumer B. O c. d. An amount 3 of wealth should be transferred from consumer B to consumer A. An amount 7 of wealth should be transferred from consumer B to consumer…

Xander has a utility function u(x,y) = xy and an income of M. Assume that the price of x is $4 and the price y is $2. If Xander's income rises from M = 104 to M = 152, what the resulting increase in demand for good x? increases by 6 units increases by 9 units increases by 11 units increases by 14.5 units

Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. The consumers have the following utility functions: UA(X1A,X2A)=X1A+3X2A; UB(X1B,X2B)=X1B +X2B. Consumer A is initially endowed with 4 units of good A and no unit of good 2, that is, consumer A's initial endowment is (w1A,W2A)=(4,0). Consumer B is initially endowed with 3 units of good 2 and no unit of good 1, that is, (w1B,W2B)=(0,3). In order to implement the allocation (x1A,X2A)=(0,1), (x1B,X2B)=(4,2) as a Walrasian equilibrium, what transfer of wealth should we make between the consumers if good 1 is the numeraire, that is, if p1 =1? An amount 7 of wealth should be transferred from consumer A to consumer B. O a. O b. None of the other answers. O c. An amount 3 of wealth should be transferred from consumer A to consumer B. O d. An amount 3 of wealth should be transferred from consumer B to consumer A. e. An amount 7 of wealth should be transferred from consumer B to…

Lan's utility function is U = xa y1-a where x denotes her consumption of good X, y denotes her consumption of good Y and a = 0.8. The price of good X is  Px = 7, the price of good Y is  Py = 14 and Lan's income is M = 338. If each price increases by 2 dollars, how much money must Lan be given to compensate her for the price increase?

Bob’s preferences for apples (A) and bananas (B) are represented by U(A,B)=A+2B. Apples cost £2 and bananas £1. Given that Bob’s monthly income is £30 answer the following questions:a) What type of goods are apples and bananas for Bob?b) What is the proportion to which Bob is willing to exchange apples for bananas?c) Illustrate and solve graphically Bob’s utility maximisation problem.d) If his income increases every month by £10, how will Bob’s consumption choice be affected? Illustrate graphically the income expansion path and the Engel curve for each good.e) How will an increase in the price of bananas to £6 affect Bob’s optimal consumption choice? (Bob’s income is £30)f) Graph Bob’s demand curve for each good.g) Assume that Bob wins a voucher of £20 redeemable only in apples. How would this affect Bob’s his utility? (Assume that prices and income are as described initially)h) Assume that Bob is presented with two options: an apples voucher of £20 or just £6 to spend in any good he…