Suppose an individual had a utility function given by: U = XSY 1 . Calculate this individual's Marginal Rate of Substitution (MRSxy) when they have a bundle with 3 units of Good X and 1.5 units of Good Y. (Round to the nearest decimal place if necessary.) Answer: Suppose a consumer had a utility function given by: U: 2X + 5Y' If the price of Good X (PX) is $6 and the price of Good Y is $2 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $12? (Round to the nearest two decimal places if necessary.) Answer: Suppose an individual had a utility function given by: U = X0'4Y5. The price of Good X is $5 and the price of Good Y is $1. The individual has a budget of $472.50. Solve the optimization condition for Y given the values above and fill in the blank below. Y = X (Round to the nearest decimal place if necessary.) Suppose the price of Good X is $4 and the price of Good Y is $3. If a consumer has a Marginal Rate of Substitution (MRSxy) of 2 for the bundle they are considering, then given their budget constraint, the consumer... Select one: 0 a. Cannot reach a higher level of utility given their budget constraint. 0 b. Would have a higher utility if they bought less of Good X. 0 c. Would have a higher utility if they bought more of Good X. Suppose an individual had a utility function given by: U = XZY. Suppose that Bundle A contains 16 units of Good X and 16 units of Good Y. Bundle B contains 4 units of Good Y and an unknown quantity of Good X. Calculate the amount of Good X that would make the individual indifferent between Bundle A and Bundle B. (Round to the nearest three decimal places if necessary.) Answer: Suppose a consumer had a utility function given by: U = X0'75Y0'8. If the price of Good X (Px) is $8 and the price of Good Y is $8 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $99.20? (Round to the nearest two decimal places if necessary.) Answer: Suppose a consumer had a utility function given by: U = X1'5Y1'5. If the price of Good X (PX) is $2 and the price of Good Y is $2 then what is the utility maximizing quantity of Good X the consumer will purchase with a budget of $28? (Round to the nearest decimal place if necessary.) Answer: Suppose a consumer had a budget of $64.40. The price of Good X is $7 and the price of Good Y is $35. Calculate value of the xintercept of the budget line. (Round to the nearest two decimal places if necessary.) Answer: Select the function that represents the marginal utility of X for the utility function: U = X0'4Y0'6. Select one: 0 a_ 2'5X0.45Y0.6 O b. 0.6X0'4Y_0'4 O c. 0.4XCL6YO'6 0 d_ 0'4X0.4Y0.6 0 e. 0.4X-0-6Y0-6 Suppose an individual had a budget of $73.50. The price of Good X is $3 and the price of Good Y is $5. Calculate the Market Rate of Substitution MktRSSubXY. (Round to the nearest decimal place if necessary.)
