EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 2, Problem 2.4P
A
To determine
ToProve: graphically that both, assuming the dual form for achieving the desired utility level at the provided cost, and the utility maximization approach would result in the same choices for the consumer.
B
To determine
To find: Assuming the individual reaches the utility level of 10, the costs associated with the given bundles of goods.
C
To determine
To find: the least costly bundle of all provided in part B for reaching the target utility of 10, and also compare this to the utility maximizing solution derived in problem 2.3.
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Students have asked these similar questions
Question 1.
For the case of two goods, give an example of a utility function U(₁, ₂) that represents the
preferences of a consumer who regards the two goods as perfect complements. Next, take the
transformation f(U)= U³ of the your example utility function and explain if this newly gener-
ated function represents the original preferences. Further, provide clear arguments supporting or
rejecting the claim that "f(U (₁, ₂)) must be strongly increasing in (₁, ₂)."
The daily total utility per quantity of
consumption is shown in the figure. This
shows that the total utility of consuming 1
product is $1.60, the total utility of 2
products is $3.00, and so on.
Using marginal analysis, for which market
price (per unit) is the optimal daily quantity
of consumption 4 units?
Quantity (units)
1
2
3
4
5
Total utility
$1.60
$3
$4.20
$5.20
$6.00
a) $5.10
b) $0.90
c) $1.10
d) $1.30
e) $5.30
a) Suppose that an individual consumes two benefits, and achieves the benefit u(x1, x2)
by consuming, respectively units of each of the benefits. Define the terms
indifference curve and budget constraint, and display the consumer's
benefit-maximizing good combination in a chart.Explain why this particular
combination solves the benefit maximization problem.
b) Suppose that the preferences of the consumer can be expressed by the utility
function u(x1, x2) =4x^0,5+x2, and that the price per unit x1 is 1p = 2 , the price per
unit x2 is 2p = 5 and that the income (m) is 200.Find the consumer's optimal good
choice in this case.
Chapter 2 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 2.1 - Prob. 1TTACh. 2.1 - Prob. 2TTACh. 2.3 - Prob. 1MQCh. 2.3 - Prob. 2MQCh. 2.3 - Prob. 1TTACh. 2.3 - Prob. 2TTACh. 2.3 - Prob. 1.1MQCh. 2.3 - Prob. 2.1MQCh. 2.5 - Prob. 1TTACh. 2.5 - Prob. 2TTA
Ch. 2.7 - Prob. 1MQCh. 2.7 - Prob. 2MQCh. 2.7 - Prob. 3MQCh. 2.8 - Prob. 1MQCh. 2.8 - Prob. 2MQCh. 2.8 - Prob. 1.1MQCh. 2.8 - Prob. 2.1MQCh. 2 - Prob. 9RQCh. 2 - Prob. 2.1PCh. 2 - Prob. 2.2PCh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.5PCh. 2 - Prob. 2.6PCh. 2 - Prob. 2.7PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.9PCh. 2 - Prob. 2.10P
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