Ask Question, Ask an Expert


Ask Microeconomics Expert

1. Albert's utility function is u(x, y) = xy. prepare alternate utility function for Albert's preferences. That is, provide a second utility function which produces same ranking for consumption bundles in Albert's choice set. Briefly describe why two utility functions rank bundles in the same way.

2. Bill's utility function is u(x, y) = (x + 4) y. Bill's income is $20, the price of X is $6 per unit, and price of Y is $1 per unit.

a. Draw indifference curve u(x, y) = 16.

b. How much of each good will Bill purchase?

3. Chris consumes two goods, X and Y. Price of X is $4 per unit and price of Y is $3 per unit. Chris's income is $48.

a. Plot Chris's budget constraint. Illustrate the values for intercepts and the slope.

b. Assume that Chris's utility function is u(x, y) = x2y. How much X will he buy?

c. Now assume that seller of X offers quantity discount of following form.
First 8 units cost $4 per unit, but all subsequent units will cost just $2 each.

i. Depict change to Chris's budget constraint in graph for Part (a). Label any changes to intercepts or slope.

ii. Will the quantity discount affect Chris's consumption of X? If so, will he consume more or less, and how can you tell? (Hint: You mustbe able to answer this problem without doing any extramath if you consider the problem graphically.)

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M923206

Have any Question? 

Related Questions in Microeconomics

Here is a link to the pdf version of dan ariellys

Here is a link to the pdf version of Dan Arielly's Predictably Irrational. The Table of Contents starts on page 11. Scan through it and choose a chapter that looks interesting. ...

Then answer the following questionsin the video it is

Then answer the following questions: In the video, it is mentioned that Whirlpool provides three different types of appliances that vary in the amount of features that are offered. Discuss the product differentiation acr ...

Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

Question 1the document that lists and details the contents

Question 1 The document that lists and details the contents and conditions of a shipment is called: A. The Tariff B. Proof of Delivery C. The Invoice D. The Bill of Lading Question 2 Declining transport rates as the quan ...

Assignmentlinking questions 51 which one of the generic

Assignment Linking questions 5: 1. Which one of the generic competitive strategies best characterize your company's strategic approach to competing successfully? 2. Which athletic footwear companies in your industry appe ...

Assignmentyou have been asked to assist your organizations

Assignment You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following: • The impact the theo ...

Assignment multiyear plans and Assignment: Multiyear Plans and Analysis Preparation •

Assignment: Multiyear Plans and Analysis Preparation • Review the document titled "City of Charlottesville 2010 Annual Comprehensive Plan" located in the course shell. Write a three to four (3-4) page paper in which you: ...

Assignmentwrite a 5-6 page paper on one of the following

Assignment Write a 5-6 page paper on ONE of the following topics. Advice: Read the question you choose very carefully, and make sure you are answering it. What you write must be clearly relevant to answering the question ...

Project-listen to this video asafter you work on your graph

Project- Listen to this video as/after you work on your graph. The lecture is on the 'Aftermath of the Financial Crisis' given by Ben Bernanke in March 29 th 2012. ...

Assignmentlearning objectives covered1explain 3 ways the

Assignment Learning Objectives Covered: 1. Explain 3 ways the statement of goals, application of rewards, and institution of discipline affect and motivate ethical behavior in individuals 2. Demonstrate how roles and aut ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro