You are buying boxes of donuts at a bakery. Each box of donuts costs $10.   Which of the following statements are true?

There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. x₁ measures the number of episodes watched of Show 1 and x₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 5 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (x₁, x₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (x₁, x₂)=( d) Evaluate…

Zeynep is at the supermarket buying her bi-weekly groceries. As she arrived at the store right before closing, not much is left on the shelves; so her purchases are limited to beef, B, and an assortment of organic vegetables, V. Beef costs £50/kg and vegetables Ł10/kg. Her utility function is expressed as U(B,V) = B0-6v0.3. She has ±150 to spend. Please answer the following questions using this information: A) Given the vegetables cost less than beef, explain why Zeynep would not only buy vegetables. B) Write Zeynep's constrained maximization problem (objective function subject to her budget constraint). C) Using the Lagrangian technique, find how much beef and vegetables would Zeynep buy? D) Show that for the preferences represented as above, demand for beef is a function of only its own price, pg, and income, m, but not the price of vegetables, py. Note: Rather than using the given prices and income, use PB, Py and m. Find and comment on the comparative statics, i.e., how do changes…

Assume that a consumer has two goods to consume: medical care services (M) and all other goods (X). She has monthly income of $4000.   a. Plot how the budget constraint should change when this consumer’s income increased to $8000. Remember to label the origin, axis, and intercepts on your graph.