Solved Consider The Utility Function U X Y X2 Y A Do We Chegg

Solved 1 Consider The Utility Function U X Y X2 Y2 A Chegg Question: consider the utility function u(x,y)=x2 y a) do we have a name for this type of utility function? compute the marginal utilities of x and y, and the marginal rate of substitution of x for y (mrsx,y). Suppose a consumer’s preferences for two goods can be represented by the cobb douglas utility function u(x, y) = a x α y β, where a, α, and β are positive constants. a. what is mrsx, y ? b. is mrsx, y diminishing, constant, or increasing as the consumer substitutes x. for y along an indifference curve?.

Solved 3 4 Consider The Utility Function U X Y Yx With The Chegg Ux (x ; y) = px (4a) uy (x ; y) = py (4b) pxx p yy = m (4c) where ux and uy denote the partial derivatives of the utility function with respect to x and to y, respectively. a ces utility function in what follows, we assume that the utility function takes the form of a ces function: u(x;y) = ( x ˆ (1 )yˆ)1 (5) and we define the price indexp. Consider the utility function u(x,y)=x^2 y. a)do we have a name for this type of utility function? compute the marginal utilities of x and y, and the marginal rate of substitution of x for y (mrsx,y). do we have diminishing mrs? b)let bob have budget i=$60, and let prices be px=$30, py=$10. find bob’s optimal basket of goods x and y. Suppose that a consumer’s utility function for two goods (x and y ) is u ( x , y ) = 10 x 0.5 2 y the price of good x is $5 per unit and the price of good y is $10 per unit. Question: consider the utility function u(x, y) = x2 y2. the marginal utilities are mux = 2x and muy = 2y. is the assumption that more is better satisfied for both goods? does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? explain. what is mrsx, y?.

Solved 1 Consider The Following Utility Function Chegg Suppose that a consumer’s utility function for two goods (x and y ) is u ( x , y ) = 10 x 0.5 2 y the price of good x is $5 per unit and the price of good y is $10 per unit. Question: consider the utility function u(x, y) = x2 y2. the marginal utilities are mux = 2x and muy = 2y. is the assumption that more is better satisfied for both goods? does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? explain. what is mrsx, y?. The m r s = m u x m u y is the slope of the indifference curves, which express one level of utility of a consumer’s utility function given their preferences. the slope of the budget constraint p x p y is the rate at which the market trades off (or exchange rate) between x and y , based on relative prices. Problem 1. utility maximization. (75 points) in this exercise, we consider a standard utility maximization problem with an unusual (for us) income. the utility function is ( )= log( ) (1− )log( ) this function is well defined for 0 and for 0 from now on, assume 0 and 0 unless otherwise stated. Utility maximization. (52 points) in this exercise, we consider a standard maximization problem with an unusual utility function. the utility function is. u(x, y) = √x √y. the price of good x is px and the price of good y is py. we denote income by m, as usual, with m > 0. this function is well defined for x > 0 and for y > 0. Consider a consumer with the utility function u(x, y) = x2 y2 . this consumer has an income denoted by i which is devoted to goods x and y. the prices of goods x and y are denoted px and py. a. find the consumer's marginal utility of x (mux) and marginal utility of y (muy). b. find the consumer's marginal rate of substitution (mrs).