The Calculus of Utility Maximization and Expenditure Minimization — End of Appendix Problem Suppose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two consumers, A and B. The utility functions for the consumers are UA(X,Y) = X 0.5y0.5 UB(X,Y) =X0.8y0.2 Consumer A has an income of $100, and Consumer B has an income of $300. Solve for the optimal bundles of goods X and Y for both consumers A and B. a. The optimal bundle for consumer A is b. The optimal bundle for consumer B is c. Calculate the marginal rate of substitution (MRS) for each consumer at his or her optimal bundles. Consumer A's MRS: Consumer B's MRS:

I need help with my homework assignment that i dont undertsand. Suppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has $90 to spend (M = $90). The Price of good Y is PY = $1.  Using a graph, sketch the consumer’s demand curve for Good X. Make sure to identify three points on the demand curve. Make sure your graph is neat, accurate, and scaled properly.

a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese meals and use the utility maximization conditions to find the demand for Vietnamese food of the typical consumer (keep in mind that since utility is quasi-linear, you can find demand without information about the consumer’s weekly budget). b) Sum across consumers to find the weekly market demand for Vietnamese meals in NYC.

Assume that the price of oranges is $2 and the price of starfruit is $1.  You have $10 of income to spend on both goods, and you intend to spend the entire amount.  Note that MU stands for marginal utility. Q of oranges       MU from oranges       Q of starfruit       MU of starfruit          1                           $20                             1                         $12          2                             16                             2                           10          3                             12                             3                             8          4                              8                              4                             6          5                              4                              5                             4          6                              0                              6                             2 To maximize total utility, you would consume _____ oranges and _____ starfruit.   Question 25…