Reese thinks peanut butter and chocolate are great when separate, but when they combine they are even more epic. In other words, Reese likes to eat either peanut butter or chocolate, but when he eats them together, he gets additional satisfaction from the combination. His preference over peanut butter (x) and chocolate (y) is represented by the utility functionz; u(x, y) =

Greg has the following utility function: u = x0.30x0.70. He has an income of $89.00, and he faces these prices: (P₁, P2) = (5.00, 2.00). Suppose that the price of x₁ increases by $1.00. Calculate the equivalent variation for this price change. *$94

Consider the following utility functions. G(x,y) = -1/[ min (6x, 2y)+1] H(x,y) = min (6x,6y) L(x,y) = min (6x,2y) - 10000000000 U(x,y) = min (3x, y) W(x,y) = min (6x, y) Z(x,y) = min (x,2y) Select the function or functions, if any, representing the same preferences as function U?

Jasper utility function for beer and pizza can be expressed as: U(B,P) = BXP Suppose beer costs $5 per glass, pizzas cost $10 each, and Jasper has a total of $30 to spend. Assume Jaspeer is allowed to purchase fractional amounts of each good. Part A) Based on the above information, what is Jaspeer's optimal amount of beer? Enter the number below. glasses Beer = 3 Part B) Now suppose the price of beer falls from $5 down to $3. Calculate the following and fill in the blanks below. When necessary, round answers to two places after the decimal. (Hint: find the decomposition basket to calculate the substitution and income effects). Jasper's total effect on beer is to increase total consumption by glasses of beer. Jasper's substitution effect is to increase beer consumption by 0.28 Jasper's income effect is to increase beer by 1.12 glasses of beer. glasses of beer.