The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as follows: MUc = Qd MUd = Qc Gino has an income (I) of £120 and the price of carrots (Pc) and donuts (Pd) are both £1. a. What is Gino's budget line? b. What quantities of Qc and Qd will maximize Gino's utility? c. Holding Gino's income and Pd constant at £120 and £1 respectively, what is Gino's demand curve for carrots? d. Suppose that a tax of £1 per unit is levied on donuts. How will this alter Gino's utility maximizing market basket of goods? e. Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amount is levied on Gino. What is Gino's utility maximizing market basket? f. The taxes in (e) and (f) both collect exactly the same amount of revenue for the government, which of the two taxes would Gino prefer? Show your answer numerically and explain why Gino prefers the per unit tax over the lump sum tax, or vice versa, or why he is indifferent between the two taxes

please help

Suppose that U(f,c) = f + 8c^(1/2)is a utility function that describes Amelia’s preferences over two goods: fish(f)and custard (c). For the following, think of fish as the good graphed on the horizontal axis.a. Derive an expression for her marginal utility (Uf)from a small increase in f holding c fixed. Also find themarginal utility for custard (Uc).b. What is Amelia’s marginal rate of substitution (MRS)? Give a brief (2 sentences maximum) intuitivedescription of what MRS represents. If Amelia has 4 units of custard, holding her utility constant, howmany units of custard would she be willing to give up in order to get one more unit of fish?c. Graph Amelia’s indifference curve for a utility level of 40. Be sure to specify at least 3 bundles of goodson the indifference curve.d. Does the fact that Amelia’s indifference curve intersects with the custard axis violate any of the 5properties of indifference curves? Briefly support your answer.e. Give another utility function that represents…

Sylvia’s utility function over waffle fries, F, and frozen yogurt, Y is given by U = 2 ∗ F ∗ Y. Her marginal utility from waffle fries is MUF = 2Y, and her marginal utility from frozen yogurt is MUY= 2F. A pack of frozen waffle fries sells for $4. The price of a cup of frozen yogurt is $6. Sylvia has a budget of $120 to allocate to these items each month. a) For Sylvia’s utility functions above, draw a set of indifference curves showing utility levels U = 20, U = 30, and U = 40 b) What is the equation for Sylvia’s budget line? Draw it (with frozen yogurt –Y– on the vertical axis), and label the slope and intercepts. c) What is Sylvia’s marginal rate of substitution? d) If Sylvia maximizes her utility, how much of each food should she consume? Solve for her optimal bundle. Show how to determine this bundle on a diagram using indifference curves and a budget line. e) Briefly explain if each of the four conditions of the utility-maximizing behavior is satisfied with the bundle you…

Focus on parts e-h

Ben gets utility from apples and bananas such that U(A,B)=A+2B. If the price of bananas is $2, then Ben's ordinary demand curve for apples in the (x1, p1) plane is zero for pA>$2 and then downward sloping for pA$0.50 and then downward sloping for pA$0.50 and then vertical for pA$1 and then vertical for pA$4 and then downward sloping for pA$4 and then vertical for pA<$4.00

The utility-maximizing bundle of x and x2may, in some instances, be found at a point of tangency between the budget line and an indifference curve. In other instances, the utility-maximizing bundle will be found at a corner point-that is, where the quantity consumed of one good is zero. For which types of indifference curves shown below will the utility-maximizing bundle definitely be found at a corner point? Choose one or more: A. B. "C. D.

Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is €2 per pound, the price of oranges is €3 per pound, and Bob's budget is $24 per week. What is Bob's utility maximizing choice between these two goods? A. 12 pounds of apples and no oranges B. 8 pounds of oranges and no apples C. 4 pounds of oranges and 6 pounds of apples D. 12 pounds of oranges and no apples Fiona uses her entire budget to purchase food and clothing. The price of food is €1 per unit and the price of clothing is €2 per unit. Fiona's marginal utility from food is 2 and her marginal utility from clothing is 6. She currently spends all her money on food and clothing. Her objective is to maximise her utility. Which of the following statements is correct? Fiona should buy more food and more clothing. A. B. C. D. E. Fiona is currently maximsing her utility and should continue to consume her current…