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An equation that represents a utility-maximizing pattern of consumption of two goods, A and B, is ______________________.
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- As consumption of a certain good increase, marginal utility ______ * Increases Decreases Increases then decreases Decreases then increasesYou are looking to build a model of consumer choice between consumption today and consumption tomorrow. Explain what utility function you would use and the type of preferences that it would represent.Which consumption theory best explain the consumption behaviour of consumers in our economy
- QUESTION 11 Which of the following pictures represents the effect of an increase in available hours to the budget constraint of a consumer? Consumption h, Leisure Consumption h, h, Leisure Consumption h, Leisure Consumption h, h2 LeisureFor each of the following utility functions get the marginal utility of consumption of each of the goods. 1/2 1/2 (a) u(a,b) = a b (b) u(x, y) = x³/4y1/4 (c) u(a, b) = n(a) + In(x) (d) u(x, y) = ln(x) + ln(y) (e) u(a, b) = 2xa +XbThe demand function for a particular good is x = a + bp. What are the associated direct and indirect utility functions?
- (c) If the preferences are concave, will the consumer ever consume both of the goods together?Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4. b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is. (Type an integer or a decimal.) C Utility (pleasure units) AU 200- 150- 100- 50- 0 (1,67) (2,106) I (3,134) (4,156) 2 Number of units of product 4 XWhat condition should be met in order for the consumer to maximize satisfaction in the consumption of good X and good Y? Provide the calculation that satisfies the equilibrium condition.
- Assume you consume two goods, X and Y. Your utility function is U = 2X + 4Y. Let PX= $4, PY= $2, and assume that your income is $100. What's your optimal consumption of Y?If people do not have a complete mental picture of total utility for every level of consumption ,how can they find their utility-maximizing consumption choice?The demand function for a particular good is x = a + bp+cm. What are the associated direct and indirect utility functions?