Given: Budget constraint: 1600 = 160*HI + 20*G Utility function: U=HI*G where MRS = -G/HI Consider someone who has an optimal bundle of health insurance (Hi) of 5 and other goods (G) of 40 (Hi = 5, G = 40).  Assume that this individual prefers to optimally purchase no health insurance (Hi).  On a graph, draw the budget constraint offered above and include the indifference curve for a person who optimally chooses to be uninsured.

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A: Indifference Curve (IC) is the locus of various combination of two goods which give equal…

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Q: Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good…

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A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

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Q: Suppose that a fast-food junkie derives utility from three goods-soft drinks (x), hamburgers (y),…

A: U(x,y,z)=x0.5y0.5(1+z)0.5 where Px = 1 Py = 4 Pz = 8 Income = 8

Q: 7 which following statement is true or flase with explaination 1. for a cobb douglas utility…

A: Cobb-Douglas function is a utility function of prices and income of the consumers. Monotonic…

Q: If a and ß are just parameters and if the direct utility function is u (x1, X2) = a · In(x1) + ß ·…

A: We have formula  fro MRS = -MUx/MUy

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Q: Question 5 Imagine U = VTy and Income=20, Px-2 and Py 2. What is the optimal bundle? %3D x*=5, y*=5…

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Q: . Make a graph with the budget constraint showing the trade-off between lifetime consumption and…

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Q: Question 1 Consider an economy with two goods t = 1,2. Whenever an individual consumes ₁ units of…

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Q: Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the…

A: Since you have asked multiple questions, we will solve first question for you. In case you want some…

Q: Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these…

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Q: For the next two questions, consider a consumer with utility function U(x1, X2) = x1+X1X2+X2 who…

A:

Q: Instructor-created question Jane receives utility from days spent traveling on vacation domestically…

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Q: Consider an economy with two goods t = 1, 2. Whenever an individual consumes xị units of good 1 and…

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.