Suppose that consumer has the following utility function: U(X,Y) - X1/2y1/4. Suppose also that P2, P -3 and 1=144. What would be the optimal consumption of X and Y at the equilibrium.respectively?36, 2412,4024,3248.16

Given information: U = X1/2 Y1/4 --------> Utility function Price of X (Px) = 2 Price of Y (Py) =…

Suppose that consumer has the following utility function: U(X,Y)= X1/2y1/4. Suppose also that Px 2,Py-3 and 1-144. What would be the optimal consumption of X and Y at the equilibrium, espectively? 36, 24 12,40 24, 32 48, 16

Suppose that consumer has the following utility function: U(X,Y)= X1/2y1/4. Suppose also that Px 2,Py-3 and 1-144. What would be the optimal consumption of X and Y at the equilibrium, espectively? 36, 24 12,40 24, 32 48, 16

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Consider a CES utility function. Derive ut as → 1. 쁩 0 = = (())) Ut + a (c21) ਜ 6-1 \ 6 -

A: The utility function refers to all those commodity bundles that derive the same amount of utility…

Q: 8/ A consumer has the following utility function: u (x, y) = 6xy + 10 a) Determine the marginal…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Q1: (I)Asma eats only apples and almonds. Her level of income is $36, Price of apple (Pa) is $2 per…

A: We have the following information related to the question:

Q: 2. Consider a small island economy where the government is contemplating imposing a tax on bananas…

A: Step 1: Step 2: Step 3: Step 4:

Q: Consider an individual who consumes two goods, x and y. Her utility function is U(x, y) = x¹/³y²/³…

A: Utility function : U(x , y ) = x1/3 y2/3Price of x = Price of y = 1 Income = 50 Gift certificate =…

Q: ;) Given preferences represented by the utility function u(x1, x2) = min{3x1, x2}. a) Write down the…

A: a) The given utility function is: U= min( 3x1, x2) This represents the utility function of perfect…

Q: Consider a consumer with the utility function u(x,y) = r*y, where a and b are both strictly positive…

A: Consumer preferences satisfy local non-satiation if, for any bundle (x, y), and any open…

Q: U(x, y) = min(x, 5y) is the utility function of the consumer. In addition, px = 1, Py = 3 and M = 8.…

A: Given Utility function: U(x,y) =min(x,5y) ..... (1) The price of good x is 1 and the price of…

Q: Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P…

A: We have price of hot dog is $1 and price of an apple pie slice is $2 and income of $9

Q: 12) A consumer's preferences are given by U(X,Y)=X0.6y04. The price of X is 4, and the price of Y is…

A: Consumer preferences refer to the wants and needs of consumers, which guide their purchasing…

Q: Harmon's utility function is U(x1, x2) = x1x2. His income is $80. The price of good 2 is p2 = 4.…

A: In economics, a budget line represents the possible combinations of two goods that a consumer can…

Q: Please refer to the following information to answer the question (in bold) below: You enjoy…

A: At consumer’s optimum bundle, slope of indifference curve is equal to slope of budget constraint.…

Q: A9) Suppose we have two goods, xi and x2, with prices pi and p2, respectively. Consider the budget…

A: Given Budget constraint x1p1+x2p2 <= m When price p1 and inocme m double i.e p' = 2p1 and m' =…

Q: utility function:

A: A utility function is a mathematical illustration that assigns a numerical value to the pleasure or…

Q: Consider the following utility functions defined over the outcome space X = R². 1. U(1₁, 1₂) = ₁₂

A: An indifference curve is a graphical representation used in economics to illustrate and analyze the…

Q: find the utility-maximizing consumption function subject to the budget constraint

A: For the utility maximising consumption bundle the basic principle is that we equate the rate at…

Q: 3(b)Consider the following social choice problem in the setting of consumption of two goods by two…

A: The Social Choice problem is ranking various social alternatives based on social desirability.…

Q: Two consumers have utility functions given by UA = x¹/3y2/3 and UB = x¹/3 + y2/3 If each consumer…

A: A utility function is a representation for defining individual preferences for commodities or…

Q: how to calculate indirect utility function for two goods, al and a2? Given that U(a1,a2) = a1 +…

A: Utility function refers to the function that gives the magnitude of satisfaction that a consumer…

Q: - There are 6 cups of espresso (x1) and 6 bars of chocolate (x2) in the house. Andrew and Eric have…

A: Initial endowment refers to the preliminary allocation or ownership of products or assets that each…

Q: A consuMER hAS A UTILITY FUNCTION v(x, y) = MAX (2x+y) (x+3y) he consumes(1,0) in equilibrium THEN…

A: The utility function is used to calculate a consumer's happiness or satisfaction as a consequence of…

Q: 1. Prove that MRS = = − ₂ holds when the utility function is U = U (91, 92).

A: 1) Utility maximization is founded on the premise that people and firms should strive to make their…

Q: Q)Suppose we have two goods, x1 and x2, with price p1 and p2, respectively. Consider the budget…

A: The budget line shows the optimal combination of two goods and services for the consumer that he or…

Q: Suppose there are 2,000 potential consumers in the Chestnut Hill market for tablet computers. All…

Q: A household of a wife and husband get utility from hours spent watching HBO (Z). To produce one unit…

A: GIVEN : =>Utility from watching HBO for both husband and wife=Z =>Cost of subscribing HBO = X…

Q: 2. Consider a consumer whose preference relation over the consumption set X = R³ can be repre-…

A: A utility function is a mathematical illustration that assigns a numerical value to the pleasure or…

Q: 3) For each utility function, determine the marginal utility with respect to x, marginal utility…

A: A utility function in economics is a mathematical representation of a consumer's preferences or…

Q: QUESTION 1 For the utility function U = Qx0.41Qy(1-0.41) and the budget 129 = 8Qx + 8Qy find the…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…

Q: For the utility function U = Qx0.800(1-0.80). and the budget 153 = 11Qx + 12Qy find the CHANGE in…

A: The consumer equilibrium is reached where the indifference curve tangents the budget line. The…

Q: Q.31 Suppose that the utility function u: RR, represents a complete, transiti and continuous…

A: Utility Function:A utility function is a concept used in economics and decision theory to represent…

Q: Do the preferences represented by this utility function satisfy monotonicity? Why or not? D. why

A: A function is monotonic if it is increasing throughout without any change or decreasing throughout.…

Q: A consumer has the following utility function U (x1, x2) = (x1 + 3) (x₂+4) Prices of the two goods…

A: In part (a) of the question we maximize utility subject to the budget constraint and calculate the…

Q: 3 8. Let be the utility function U(x, y) = (xi + 2yi), , where x and y a are the quantities %3D…

A: Given information U=49X13 +2Y133 Consumer is consuming X and Y X=2 and Y=2

Q: 1. Tom (T) and Jerry (J) have identical incomes I. Their preferences can be described by the utility…

A: Utility refers to the satisfaction or happiness that a consumer get from the consumption of goods or…

Q: Suppose a consumer seeks to maximize the utility function U (x, y) = (x+2) (y + 1), where x and y…

A: For utility maximization the second-order condition we have to show the utility function is convex…

Q: A consumer has preferences over 3 goods represented by the utility function u(x₁, x2, x3) =…

A: u(x1,x2,x3) = (x1x2 )0.5- 2-x3 Good 1 and 2 are perfectly divisible and Good 3 are invisible and…

Q: An individual’s utility function is given by U = x1 √ x2 where x1 and x2 denote the monthly…

A: A utility function is a mathematical expression that represents an individual's preferences for…

Q: Suppose that consumer uses 2 units of X and 5 units of Y always in fixed proportion. Suppose also…

A: Px = 1; Py = 2 ; I = 120 The Bundles must hold/satisfy 2 consitions: 1) Budget Constraint: x+2y =…

Q: 1. A consumer wishes to maximize the utility U(X1, X2) = (X1 + 20)(X2 + 30) subject to the available…

A: Given Utility function U=(X1+20)(X2+30) M=600 P1=5 P2=4

Q: Given the utility function U(x1, x2) = x³x2.7, select all that are true. a) 30% of the budget is…

Question

100%

Suppose that consumer has the following utility function: U(X,Y) - X1/2y1/4. Suppose also that P
2, P -3 and 1=144. What would be the optimal consumption of X and Y at the equilibrium.
respectively?
36, 24
12,40
24,32
48.16

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Beans and doughnuts: The consumer receives positive benefits from the consumption of beans (B) and donuts (K). Utility function of the consumer is the following: U(B,K) = 100∙B^0.25 · K^0.75 The price of beans (can) is ISK 2,000. but the price of a donut (box) is ISK 4,000. Consumption restrictions are placed on the consumer since his income is ISK 400,000. Put on all form donuts on the x-axis and beans on the y-axis. a) Show an equation for the bean's success rate for a single donut in light of the utility function. Draw the equivalence curve on a picture and explain what the equation is performance ratio is stated at each point on the equivalence curve. Explain with the concept of the efficiency ratio of the curvature of the equivalent curve. b) Find the most efficient consumption combination and draw on the diagram. c) The government decides to support the consumption of beans so its price drops to 1,000. Who is the most economical consumption combination based on the changed price…
1. Consider a consumer who consumes two goods. The utility function is given by u(x1, x₂) /2x1+1+√√√x₂, - where x > 0 denotes the amount of good i = the price of good 1 is 3, the price of good 2 is p2 > 0, and the income is 12. 1,2 consumed. Unless stated otherwise, (1) Calculate the marginal rate of substitution (measuring the value of good 1) at the consumption plan (x₁, x₂) = (3, 4). (2) Calculate the consumption plan that is optimal for the consumer. (3) Let v(p₂) denote the utility level at the optimal consumption plan. Calculate its derivative with respect to p2, i.e., v'(P2), at p2 = 3. (4) Suppose that p2 = 1 and the utility level is 10. Calculate the compensated demand for each good.
4.An individual consumes products X and Y and spends $30 per time period. The prices of the two goods are $3 per unit for X and $3 per unit for Y. The consumer in this case has a utility function expressed as: U(X.Y) = 0.5XY How much X should this individual consume, given that he is maximizing the utility? ( A) 4.17 ( B) 5 (C)6 D) 6.25
Elements of Mathematical Economics
Suppose that a consumer has the utility function U(X,Y)= 2X 1/2 y 1/2 for X>0 and Y> 0. Which of the following utility functions would not represent the same preferences? U(X,Y)= 2(X + Y) 1/2 U(X,Y)=2x1/2y 1/2 - 100 O U(X,Y)= In 2 + InX+ In Y O U(X,Y)= X 1/2 y 1/2 O U(X, Y) = 4XY
If the utility function (U) between food (F) and clothing (C) can be represented as U = F*C, then which combination of food and clothing will a rational consumer choose? a. (F, C) = (9, 25) O b. (F, C) = (25, 4) O c. (F, C) = (4, 16) d. (F, C) = (4, 25)
Problem 2.3 Let the consumer's preferences over consumption bundles (x1, x2) be represented by the utility function u(x1,X2) = /x1 +1·(x2+1). Which of the following statements is correct? (a) The utility function v,(x1,x,) = In(x, + 1) + 3 ln(x, + 1) also represents the consumer's preferences. (b) The utility function v,(x1,x2) = In(x1 + 1) + In(x2 + 1)² also represents the consumer's preferences. (c) None of the statements is correct.
Suppose the function for the utility from good c is denoted as U(c)=2c2. Which of the following expressions indicates the marginal utility of c? 1/c2 1/square root of c All of the above are correct.
Your preferences are represented by the utility function U = (x9.5 + x2:5)², where the price of good 1 is 4 PHP and the price of good 2 is 3 PHP. Your income is given by 50 PHP. • Set up the Lagrangean function for this utility-maximization problem with constraint. Compute for the utility-maximizing quantities of x₁ and 22. • What is the maximum level of utility you can attain given your utility function and budget con- straint?
Please teach not just solve
Only typed solution
Part A . Consider an economy with the following features. • There are 100 identical consumers that derive utility from consuming three different goods: software, computers, and good m. • Each consumer decision utility function is given by U (c, 8) = 4c¹/48¹/4+m, where e denotes the amount of computers that she consumes, s denotes the amount of software that she consumes, and m denotes the amount of good m that she consumes. cand s must be non-negative, but m can take any real value. • Computers are produced by 20 identical competitive firms with a total cost function given by 10c². • Software is produced by 40 identical competitive firms with a total cost function given by 20s². . QUESTION 1: What are the equilibrium prices for software and comput- ers in equilibrium? Part B • Suppose that there is a positive technology shock in the software industry so that that the new cost function of the software firms becomes 10s². Let C and S denote, respectively, the aggregate level of…