What is equation for the indifference curve for utility

Assignment Help Business Economics
Reference no: EM131244294

Sally the Greek’s preferences can be described by the utility function U(x, y) = (2x1/2 + y1/2)2.

(a) What is equation for the indifference curve for a utility of 25? (2)

(b) By how much does utility increase when Freddy increases consumption of good y by one (small) unit, when initially U = 25 and x = 4? (2)

(c) Holding utility constant at 25, if initially x = 4, how many additional (small) units of y does Freddy have to consume if his consumption of x drops by 6 (small) units? (2)

Reference no: EM131244294

Questions Cloud

In the loanable funds market-each dollar borrowed : In the loanable funds market, each dollar borrowed: Because businesses are the primary:
Influenced the slope of the phillips curve : The slope of the Phillips curve: Draw a graph with a steep Phillips curve and a graph with a gently sloped Phillips curve. Explain how the two economies respond differently to a boom and to a slump. What are some factors that might influenced the slo..
Evaluate a real situation between two actors : Evaluate a real situation between two actors; it could beany scenario: two competing businesses, two countries in negotiations, two kids trading baseball cards, you and another person involved in an exchange or anything else. Use game theory to analy..
What is the budget constraint : Freddy the Meek has $36 to spend on waffles W and French Toast F. The prices are $3 and $4, respectively. What is the budget constraint? How many more waffles does an additional dollar spent on W buy? How many more French Toasts does an additional do..
What is equation for the indifference curve for utility : Sally the Greek’s preferences can be described by the utility function U(x, y) = (2x1/2 + y1/2)2. What is equation for the indifference curve for a utility of 25? (2). By how much does utility increase when Freddy increases consumption of good y by o..
Properties of completeness-transitivity and non-satiation : Henry the Geek likes books (B) and computer games (C). We have observed that he preferred the bundle (12, 8) over (9, 15), bundle (20, 6) over (15, 10), and bundle (4, 16) over (13, 9). Assume that his preferences satisfy the properties of completene..
Draw tareks budget constraint and consumption : Tarek commutes on the subway, and buys all-other-goods (AOG). He has $100 to spend on subway tickets and AOG. The price of AOG is $1, and the price of a subway ride is $1, as well. Draw Tarek’s budget constraint and consumption, making sure to label ..
Assume perfectly competitive firm is producing : Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $11, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $9. Based on this information, the firm is:
Compute elasticity of demand and supply at the equilibrium : The market for cereal is characterized by the demand equation: QD=35-20P And supply is characterized by: QS=5P-40. Find the equilibrium in the market for cereal. Show your work. Compute the elasticity of demand and supply at the equilibrium. Show you..

Reviews

Write a Review

Business Economics Questions & Answers

  Affect the cost for health insurance companies

When more people buy the more expensive brand name drugs rather than the cheaper generic drugs, how does this affect the cost for health insurance companies? Hint: We are now looking at the health insurance market, not the health care market.

  When you look at monetary or fiscal policy

When you look at monetary or fiscal policy, it’s important to consider the Phillips curve. Explain what the short-run Phillips curve is and why it is important in thinking about economic policy. Explain what stagflation is and why stagflation is inco..

  Practices price discrimination by charging separate prices

A monopolist sells to two groups of people and practices price discrimination by charging separate prices for each group; students and non-students. This monopolist produces at constant marginal cost MC = 10. What is the price for each group if he ca..

  Stage-specific examples related to marketing bicycles

Imagine that you are the marketing manager responsible for developing marketing strategy for a bicycle company. Propose the strategic marketing process you will use, being sure to name the stages, the activities included in the stages, and stage-spec..

  National health service system

In the UK's National Health Service (NHS) system, the member hospitals are government owned and the doctors working in them are government employees.

  Comput the following with an explanation how you arrived

Comput the following with an explanation how you arrived at each result. The Amount Consumers will spend on new consumption.

  Verbally theoretical land price gradient between commercial

Explain verbally the theoretical land price gradient between commercial, residential, and agricultural uses of lands. Do we observe this theoretical relationship in Colorado’s Front Range? Why or why not? Discuss at least three of the policy options ..

  What fed wishes to increase

Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. Given a required reserve ratio of 0.25, what should it do?

  Regulation of nation financial intermediaries

Explain how savers and borrowers might benefit from regulation of nation's financial intermediaries. Does regulation impose costs? How do these costs affect long-run economic development.

  Find the revenue-total cost and profit function

Suppose you run a manufacturing business that is involved in manufacturing and selling a single product. The fixed cost to run the business is $15,000 and the constant marginal cost is $7.50 per unit. The sale price of your product is $15 per unit. F..

  Is the natural rate of unemployment fixed

Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?

  What money supply should the fed

Illustrate what money supply should the Fed set in yr 2009 if it wants to keep the price level stable?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd