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

Q: ne slope əpna əl c. What is the slope of the indifference b. IS curve (MRS)? d. Write the intuition…

A: Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good…

Q: John is maximizing utility when consuming two goods, French fries and hot dogs. If the marginal…

A: Utility Maximization is the situation where a consumer spend his all income on goods that maximise…

Q: Consider a consumer with a utility function U(X,Y) = 4vX + vỸ a) Explain what marginal utility is.…

A: Utility refers to the amount of satisfaction gained by an individual by consuming a good. Marginal…

Q: Mr Banda faces the following utility function from consuming nshima [X] and Rice [Y] U = 3XY 1 3 Mr…

A: Given information:   There is two goods, nshima and rice nshima is denoted by X rice is denoted by Y…

Q: gmmar ou Complete this table, showing Guido's utility from beer and pizza, to answer the following…

A: Here we have to calculate the Guido purchase of slice of Pizza given the price of slice pizza is $2…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: The ability of a good to fulfill human needs is demonstrated by its utility. The utility function…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: Given U(M,S)=M^{2/3}S^{1/3} a.) Budget constraint : Let M denote Mcnuggets and S Szechuan sauce,…

Q: a) If the price of food is $1, and of all else is $2, how much of each good will Pat choose? b) If…

A: Consumer theory studies how people decide to spend their money based on their individual preferences…

Q: Jake likes Coke (C) and Pepsi (P), and he gets one unit of utility from consuming either one Coke or…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: The consumer is in equilibrium when indifference curve is tangent to the budget line. It is…

Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…

A: Marginal utility refers to the additional satisfaction or usefulness that a consumer derives from…

Q: Kevin's utility function is given by U=3x+2y. Kevin's demand functions for X and Y graphically…

A: Substitute goods are used for each other. When price of one good increases, the consumer tends to…

Q: question #104 Fred currently has $800 to spend on Goods X and Y. The price of good X is $20/unit,…

A: U(x,y) = x2y3M(income) = 800Px = 20 Py = 12

Q: 1. Joseph's utility is given by: U=X² + y² (Note that this is the equation of a circle with the…

A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…

Q: Y) för 1 пее (g0 a. Write out Jim's utility function. b. Jim's budget constraint is 100 = 4x + 9y.…

A: (A) U = min(2X, Y) If Y is 2, X should be 1,thus U remains constant and U is utility.

Q: Can you quickly give workings of the following question please? Bob views apples and oranges as…

A: Indifference curve: It is a graphical presentation of all the possible combinations of two goods…

Q: In a simple but delicious world, Joey eats only sandwiches, s, and jam, j. He has a Cobb-Douglas…

A: a. Since N>0, for any N in that, the order of the bundles will be preserved. That mean if…

Q: 10) Find the marginal and average functions for the following total functions and graph the results.…

A: Total Cost Function C = 3Q2 + 7Q +12

Q: Denver Bluff High School has $60,000 to spend on computers and other goods so its budget equation is…

A: We are going to find optimal bundle and marginal rate of substitution using utility maximisation…

Q: Find the optimal choice for each of the following individuals given that each has an income of $210…

A: Income = $210  Px = 2 , Py =1  Hence the budget equation is : 2x + y = 210

Q: In the following graph the price of Y is $15. What does the curve in the second graph show? Y 40…

A: The budget constraint is the graphical representation of the relationship between bundles of…

Q: Paul derives utility from cups of coffee (C) and donuts, which he eats a dozen at a time (D). His…

A: The above question is based on consumer preference. Here Paul consumes coffee and donuts and his…

Q: From the information given above calculate the price of Y. Given the information above, calculate…

A: Consumer has options of two goods; X and Y. This consumer has total income of $1000 to spend on X…

Q: Suppose Lucia has to choose between purchasing high-definition televisions and water. Which of the…

A: The process by which individuals or households allocate their limited resources (such as income or…

Q: Practice sheet: The optimal choice Find the optimal choice for each of the following individuals…

A: # consumer's budget income = 210  ; Px = 2, Py =1 Hence consumer's budget equation would be :  =>…

Q: -llows: U(Q,Qa) = Q.*Qu onald has an income (I) of $120 and the price of carrots (Pe) and donuts…

A: ANSWER A and B part

Q: Let's assume that Justin Trudeau, who lives in Ottawa, is purchasing corn (C) and dandelion (D) in…

A: The utility is maximum when both goods are purchased at equal marginal utility per dollar.

Q: 14. Steve Rogers consumes shiny metal shields, denoted as good s, and blue face masks, denoted as…

A: In economics, it is an expression that states utility derived from the consumption of two goods x…

Q: Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility function is as…

A: Utility shows the satisfaction that consumers receive after consuming a good or service. Utility…

Q: Mary's indifference map and budget constraint for goods X and Y are shown below. If Mary spends all…

A: Utility is the total satisfaction that the consumer derives from consumption of the goods and…

Q: Rick consumes 2 goods, Chicken McNuggets (M) with Szechuan sauce (S). His utility function is U(M,…

A: In microeconomics, the function of U {"utility"} is described as a crucial term or concept in which…

Q: For each of the following situations, decide whether the bundle Lakshani is considering is optimal…

A: The term utility can be defined as the level of satisfaction that a consumer derives from the…

Q: Solve these consumer choice problems: a. Suppose a consumer has a utility function u(x, y) = xy + 7y…

A: Utility function : u(x, y ) = xy + 7y  px = 1 , py =2  , Income = 10  Budget Constraint : x + 2y =…

Q: Tristan has preferences for computers (C), and robots (R). Computers costs $750 a unit and robots…

A: The consumer tends to maximize utility where the slope of indifference curve is equal to the slope…

Q: 4. Tim wants to maximise his utility given his utility function of U (A, B) = A² B¹. He faces 20; M…

A: Utility is maximised by consuming the bundle where ratio of marginal utilities is equal to ratio of…

Q: Jennifer likes her tea, but only if prepared with 4 teaspoons of honey for every cup of tea. The…

A: Jennifer likes tea with 4 teaspoons of honey. The price of the tea is $2. The price of the honey is…

Q: 1. In a simple but delicious world, Joey eats only sandwiches, s, and jam, j. He has a Cobb-Douglas…

A: Since we answer a maximum of 3 subparts, a-c will be answered here. Please reupload the question…

Q: Troy likes games (Good X) and books (Good Y). Based on the number of games and books in his current…

A: The consumer utility is maximized where MRSx/MRSy = Px/Py. MRS refers marginal rate of substitution…

Q: 1. Jim's preferences for pears and apples can be summarized by the following utility function:…

A: a) To draw an indifference curve, we need to calculate a series of bundles that all produce the same…