Gene has the following utility function u xy 2y the px 4, Ask an Expert

Economics

Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.

a. Find Gene’s MRSx,y

b. Is the MRSx,y increasing, decreasing, or constant with respect to X?

c. What is the slope of the budget constraint?

d. Find the optimal X and Y.

e. At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91521426

Have any Question?Write your Review or question?

Related Questions in Business Economics

Trans-pacific partnership tppa what are the economic

Trans-Pacific Partnership (TPP) A. What are the economic implications? Provide a credible citation. B. What possible impact could this event have on global trade? Provide a credible citation. C. What is President Trump's ...

The tobacco industry is a prime example to consider when

The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers". What can we s ...

The increase in prescription drugs cost increases the drug

The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?

What are the main things to remember about elasticity

What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?

Charlies indifference curves have the Charlie's indifference curves have the equation xB

Charlie's indifference curves have the equation xB = cons tan t/xA , where larger constants denote better indifference curves. Charlie strictly prefers the bundle (6, 16) to a. the bundle (16, 6). b. the bundle (7, 15 ...

Since quotas do not raise revenues but have the same trade

Since quotas do not raise revenues but have the same trade effects as do tariffs, why not just have tariffs? Why would the government impose quotas when tariffs not only would reduce imports but also bring in new revenue ...

Suppose we have a hypothetical economy with a marginal

Suppose we have a hypothetical economy with a Marginal Propensity to Consume of seventy-five percent (75%). Further assume business investment spending increases by $2,000. By how much will this change affect Gross Domes ...

Suppose demand and supply are given byqdxnbsp 14 - 05

Suppose demand and supply are given by: Q d x = 14 - 0.5 P x and Q s x = .25 P x - 1 a) Determine the equilibrium price and quantitiy. b) Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium ...

How has the value of the euro changed compared to other

How has the value of the Euro changed, compared to other countries, over the past 10 years (since the Great Recession began)?

There are 100 identical firms in a perfectly competitive

There are 100 identical firms in a perfectly competitive industry. Market demand is given by -200P +8000. If each firm has a marginal cost curve, MC = .4 q + 4. What is the firm's supply curve ? What is market supply? Wh ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert