Question
The first 3 are multiple choice and the last 2 are free response, thanks!!! 1) Alexa gets the same level of satisfaction from 16 apples
The first 3 are multiple choice and the last 2 are free response, thanks!!!
1) Alexa gets the same level of satisfaction from 16 apples as she gets from 8 bananas. Knowing her preferences are of the Perfect Substitutes kind, among the following bundles , which one is Alexa's favorite:
a)10 apples, 10 bananas
b)2 apples, 18 bananas
c)40 apples, 0 banana
d)22 apples, 5 bananas
2) Alice has Perfect Substitutes preferences. She is indifferent between bundle (X = 20, Y = 5) and bundle (X= 10, Y = 30). What is her Marginal Rate of Substitution for X with Y?
a)0.4
b)-2.5
c)2.5
d)-0.4
3) Gertrude consumes X and Y and her preferences are of the Perfect Substitutes kind. Knowing she is indifferent between Bundle (5, 5) and Bundle (7, 3), if her budget is $33 the price of X is $1 and the price of Y is $1.5, what is her optimal bundle?
a)X = 15,Y = 12
b)X = 33,Y = 0
c)X = 33 ,Y = 22
d)X = 0, Y = 22
4) Imagine that two goods are available to you: apples (X) and pears (Y).You like apples half as much as pears.If your fruit budget is $100 per month, the price of apples is $2 per pound, and the price of pears is $4 per pound, what is the value of the difference between the MRS and the MktRS (market rate of substitution)?
5) Imagine that two goods are available to you: hamburgers (X) and hot dogs (Y).You like hamburgers and hot dogs equally well.If your fast food budget is $50 per month, the price of hamburgers is $6 per unit, and the price of hot dogs is $4 per unit, what is the value of the MRSXY?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started