Question
The first question is free response, the second is multiple choice and the third is free response. For the multiple choice, the options are listed
The first question is free response, the second is multiple choice and the third is free response. For the multiple choice, the options are listed right below the question. Thanks!
1) Imagine there are two goods, H and S. The utility function is: U = H1/2S1/2.The price of H is $6 and the price of S is $3.The budget is $18.What is the optimal quantity of H to consume?
2) Emily's and Lavander's preferences about yogurt and protein bars are possibly different. Both are well-behaved, though. Also, the two girls have the same budget. The price of the cup of yogurt is $1 and each protein bar costs $2. Knowing Emily's optimal bundle is 8.2 cups of yogurt and 4.25 protein bars, which of the options below could be Lavander's optimal bundle?
a. 7.2 cups of yogurt and 6.25 protein bars
b. 10 cups of yogurt and 6.7 protein bars
c. 15 cups of yogurt and 0.85 protein bars
d. 4.1 cups of yogurt and 8.5 protein bars
3) Gennaro's preferences can be represented by the utility function U = X2Y2. His budget is $60, price of good X is $3, price of good Y is $4. What is his level of utility when he consumes his optimal bundle?
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