Let u(x,y) = 5x + 5y and let I denote income and px, py the prices of the goods. compute the demand functions for goods x and y when I = 100 and px = py = 1

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Keith LeannonLv2

19 Aug 2019

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U(X,Y)=MIN(3X,Y). The consumer has $60 to spend and the prices of the goods are Px=$2 and Py=$1. What is the optimal utility?

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35. Ron starts out in consumer equilibrium, consuming two goods, X and Y. Ron's income rises. At this point, we can definitely conclude that A) MUX/PX > MUY/PY, and then Ron increases his consumption of X. B) MUX/PX > MUY/PY, and then Ron decreases his consumption of X. C) MUX/PX < MUY/PY, and then Ron increases his consumption of X. D) MUX/PX < MUY/PY, and then Ron decreases his consumption of X. E) none of the above.

Cero has utility U = -{(x -50)^2+ (y -40)^2}, Px = Py = 1 and M = 100.

a.If he receives an additional 10 income how does he spend it? Just on x, just on y or some on x and some on y or on neither? Ted has utility U = 5x^2+ 8y^3 Px = 1 Py = 2 a.At what income is Ted indifferent between buying only x or only y?

b.If income were above the level found in part a, which good would he buy exclusively?

c.If income were below the level found in part a, which good would he buy exclusively?

d.Would the same answers for parts a, b, c hold true if utility were U = 10x^2+ 16y^3and why or why not?

Josh has utility U= -min{4x, 5y} Px=7 Py=10 M=140

a.What is the highest utility he can get?

b.What is his optimal point?

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Let u(x,y) = 5x + 5y and let I denote income and px, py the prices of the goods. compute the demand functions for goods x and y when I = 100 and px = py = 1

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