Mary spends all her budget on statistical software (S) and office supplies(O). Her preferences can be represented by the utility function: U(S, O) =2 ln(S) + 3 ln(O). Suppose that the price of software is pS = 2, the price of officesupplies is pO = 3, and Mary’s income is I = 10. What bundle ofsoftware and office supplies (S, C) maximizes Mary’s utility?

Q: Let x be eggs and y be bagels. An individual utility function is given by U(x, y) = ½ x + 1 y. This…

A: Given utility function  U(x,y) = 12x+1y   .......... (1) Equation of budget constraint: 2x+1y = 4…

Q: Clara's utility function is U(x, y) =(x+2)(y+1). If her marginal rate of substitution is -4 and she…

A: Marginal rate of substitution is the rate at which one good is substituted for other. It is the…

Q: Suppose the price of a dress increases to $200 and income decreases to $4200. What is the new…

A: Budget line is a locus of all possible combination of two goods on which consumer spends his entire…

Q: Why does the optimal consumption bundle occur where the budget line is tangent to the indifference…

A: Answer: Introduction: A consumer maximizes his/her consumption where the slope of the budget line is…

Q: Suppose that you have an income of $20 to spend on sticky hands and gumballs. Both cost $1.00.…

A: Preferences: Sticky hands(y) and Gumballs (x) Total Income (M) = $20 Price of Sticky hand (Py) = $1…

Q: Felina prefers to spend her living allowance of $1500 on Mobile data and food. She prefers to pay…

A: The utility is the want satisfying power of the commodity. The budget line would be the total amount…

Q: Suppose that initially, bread is $2 per loaf, and cake is $2 per slice. Marie Antoinette has $18 to…

A: The substitution effect is given by the change in consumption of bread between the initial and…

Q: Consider a representative consumer in a two goods economy of x and y. The price of good x is 1 TL…

A: Utility function of two goods X and Y. Price of X = 1TL Price of Y = 3TL MRSXY = 2 Solution: Optimum…

Q: Assume that a combination of two goods reflects a point of tangency between the budget line and an…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: How does a rational consumer choose his optimal consumption bundle? Graphically show the…

A: The economics as a study is based upon the idea that the economies, and the societies around the…

Q: Suppose Maryís utility function is given as U(X; Y ) = 2X + Y . Mary has and income of 60 dollars.…

A: An important concept that measures preferences over a set of a particular good and services in terms…

Q: Sophia’s preferences over donuts (D) and coffee (C) are represented by the utility function:…

A: The utility function implies donuts and coffee are perfect complements and consumed in fixed…

Q: The budget set, or budget constraint, in the graph shows the possible combinations of brownies and…

A: Budget line shows graphically the possible combinations of two goods which a consumer can purchase…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Individual M consumes product F Per unit product F= $5 Total income=$2,000   Maximum amount of food…

Q: Let the utility function of a consumer is given by the following function U = (x + 1)(y + 1) a. Find…

A: Given utility function  U=x+1y+1             ............ (1)

Q: Carol needs to decide how to spend her wealth on fish and chicken. For Carol, 1 lb of fish is…

A: Given, u(x; y) = 2x + y

Q: Answer the question on the basis of the following total utility data for products L and M. Assume…

A: Answer - Need to find- What level of total utility does the rational consumer realize in equilibrium…

Q: Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces…

A:

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: A rational consumer would always aim at maximizing his/her utility. So a consumer would choose the…

Q: Mrs. Griffiths earns $5000 a week and spend her entire income on dresses and handbags. Since these…

A: The indifference curve shows the combination of two goods and services that gives the same…

Q: The Busto family is allocating its monthly household expenditure between only two goods, food and…

A: Given information: Price of food: $5 per unit Price of clothing: $10 per unit Marginal utility from…

Q: John spends all his money on leather jackets and hats. John’s utility function is given by U(x1,…

A: Indifference curves are curves that show a combination of the goods that provide equal satisfaction…

Q: Maya divides her income between coffee and croissants (both of which are normal goods). An early…

A: There are primarily two types of products: inferior goods and normal goods. The inferior goods are…

Q: What is the value of MRS at the optimal point and what does this value mean?  b) What is the…

A: Utility refers to the level of happiness derived by a person when he./she consumes a good or…

Q: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Given; Price of cheese cake= RM8 Price of curry puff= RM4 Income; M= RM52

Q: Carol needs to decide how to spend her wealth on fish and chicken. For Carol, 1 lb of fish is…

A: The curve which depicts quantities of two of the goods that tend to provide a consumer with equal…

Q: Caleb has an income of $100 and a utility function u(x.y) 2x 4y. Say that the price of x is $4 and…

A: Answer is given below

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: Given, U (F,C) = FC MUF= C MUC = F Income (I) = $100 Price of food (PF) = $2 Price of cloth (PC) =…

Q: Mike is a jellyfish wrangler.  In June and July he spent his budget on fish tanks and wet suits.…

A: Marginal Utility: - marginal utility is the utility derived by the consumption of an additional…

Q: Q14. The slope of the calculated by taking the price of one good and dividing it by the price of the…

A: Budget constraint shows the combination of total expenditure of goods which are spent by consumer on…

Q: What is the difference between ordinal utility and cardinal utility? Explain why the assumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: Suppose a consumer only purchases food and clothing, and food plotted along the horizontal axis of…

A: Indifference curve: It refers to that curve which shows the combination of two different goods…

Q: Suppose that price of good X falls by 50 % while price of Y falls by 25% and Income falls by 50%.…

A: Assume the budget line before the change is : 10x+20y=200 Px=10 and Py=20 Price of x falls by 50%…

Q: Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on pudding…

A: Marginal rate of substitution can be explained as the rate at which a consumer is willing to give up…

Q: The utility function for an individual is given as u (x; y)= xy. Suppose that his income is S 100…

A: This individual's budget constraint: The utility function for an individual is given as u(x:y)= xy…

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

A: Budget constraint shows the different feasible combination of two goods that can be attained by…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: The Engel curve shows the relationship between the income and the demand of a particular good…

Q: Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to…

A: The law of diminishing marginal utility states that, when the consumer consumes a commodity without…

Q: Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will…

A: Here, it is given thatUtility function, U(x, y) = 5x + 2y  where x and y depicts that they are…

Q: Assume that the data in the following table are an indifference curve for a consumer: a. graph this…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as…

A: Marginal utility is the additional utility gained from consuming an additional unit of the good.

Q: If the price of a cinema ticket is 20, the price of a concert ticket is 40 and the income is 120,…

A: Budget constraint shows the combination of two goods a person can afford given its income level and…

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

A: Indifference curve refers to the curve which shows all the possible combination of two goods that…

Q: Consider a utility function: U (F,C) = FC so MU_F = C and MU_C = F Suppose as Case 1, Total income…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Optimal bundle is where budget constraint is tangent to indifference curve.

Q: Amrita, a utility maximizing consumer, consumes only two normal goods, Breakfast Cereal and Bread…

A: Marginal utility refers to the value of additional utility that derived from the consumption of one…