Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect on y? O A.-14.53 O B. +14.53 O C. +24.21 O D. +25.79 O E. None of the above
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Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect on
y?
O A.-14.53
O B. +14.53
O C. +24.21
O D. +25.79
O E. None of the above
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- Assume that Robyn wants to buy socks and once she finds out that the price per pair is $5. she decides to buy 4 pairs of socks. Which of the following is true? O a) The marginal benefit (or marginal utility) of the 5th pair is higher than the marginal cost of the Sth pair O b) The marginal benefit (or marginal utility) of the 4th pair must be equal to $20 O O The marginal benefit (or marginal utility) of the Sth pair must be lower than $5 O d) The marginal benefit (or marginal utility) of the first pair must be lower than 55Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.0 2 O 4 6 08 D Scones 10 1 2 3 4 5 Total Utility 10 18 24 Refer to Table 6.3, which shows the total utility and marginal utility derived from the consumption of scones. The first column of the table represents the number of scones a consumer consumes in a day. The second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. The total utility derived from the consumption of one scone is units. 28 30 Marginal Utility 6 2
- = Suppose that consumer has the following utility function: U(X,Y) = 2XY+20X. Suppose also that Px 10, Py = 20 and I = 80. What would be the optimal consumption of X and Y at the equilibrium, respectively? O O O 8,0 6, 1 0,4 4, 2O O O A. 33 B. 56 C. 29 O D. 35 Units 1 2 E. 59 345W N 6 7 Marginal Utility 10 0053 O 8 Toffee (bars) 1 Total Utility 10 18 23 26 27 27 27 Refer to the table above. If this consumer purchases 3 toffee bars and 5 bags of cashews per week, his/her total utility will be Cashews (bags) Marginal Utility 12 10 7 5 2 1 0 Total Utility 12 22 29 34 36 37 27MN 00 CO IN %24 Question 25 of 60 > (Table) Based on the table, assume that a bag of chips costs $3. The marginal utility per dollar for the first bag of chips is Bottled Water Bags of Chips Quantity Total Utility Quantity Total Utility 1. 1. 09 06 105 2. 3. 06 4. 114 4. 90. 120 O 10. O 20. O 15. 10:07 PM 75°F ENG 12/12/2021 dp f12 prt sc delete home 61 pua f4 144 I14 backspace -> wnu lock 7. 6 5. 9. 4. L home D. enter K. pause ↑ shift
- Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products G and H. MUG 36 33 27 21 18 12 6 Units of G 1 2 3 4 5 6 7 Multiple Choice O A What level of total utility is realized from the equilibrium combination of G and H, if the consumer has a money income of $29 and the prices of G and H are $3 and $5, respectively? 293 utils 324 utils 336 utils Units of H 1 2 72 utils 3 4 5 6 7 MUH 70 60 55 45 30 25 15The above figures show the market for gasoline. Which figure(s) shows the effect of an increased preference for cars that are smaller and more fuel efficient? DI 这些 D2 D2 D₁ Quantity (gallons of gas) Quantity (gallons of gas) Figure A Figure B Price (dollars per gallon) S2 她 Quantity (gallons of gas) Figure D Quantity (gallons of gas) Figure C O Figure A O Figure B O Figure C O Figure D Price (dollars per gallon) S2QUESTION 3 If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals O A. 0.67; AN INFERIOR GOOD OB. 1.5; A LUXURY GOOD O C. 0.67; A NORMAL GOOD O D. 1.5; AN INFERIOR GOOD O E. 1.5; A NORMAL GOOD 4 and clothing is
- Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities MUS 56 48 32 24 20 16 Units of J 1 2 3 4 5 6 7 Multiple Choice O O What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $36 and the prices of J and K are $4 and $4, respectively? O 12 238 utis 40 utils 204 Units of K 1 2 3 4 5 6 7 MUK 32 28 24 20 12 10. 8Another utility function is given; U(X, Y) = X.75 Y0.25 s.t. PxX+PyY=l What is the coefficient of the compensated demand function Y? Select one: O a. 0.46875 O b. 0.45875 O c. 0.42875 O d. 0.44875 O e. 0.43875Suppose that consumer has the following utility function: U(X,Y)= X¹/2y¹/2 and Px = 1, Py = 4 and I 720. Suppose now that Px goes up to 4. What is the magnitude of the income effect on good X? O90 - 90 180 O-180 P