Exam 4: Consumer Behavior

Jewel's utility is a function of golf (G) and music lessons (M), where MU_G = 1/G and MU_M = 1/M. What is the equation for the marginal rate of substitution of music lessons for golf (MRS_GM)?

The utility function U = Y/X violates the assumption(s) of:

Suppose that a consumer's utility function can be written U(X,Y) = XY². a. Use calculus to determine whether this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in X. b. Is this consumer's marginal rate of substitution MRS_XY is increasing or decreasing in Y?

Martha loves to eat chili, especially an award-winning chili recipe that calls for using 2 tablespoons of chili powder for 1 pound of ground buffalo. What is Martha's utility as a function of tablespoons of chili powder (P) and pounds of ground buffalo (B)?

A consumer is consuming a bundle of goods in which her MRS_XY is greater than P_X /P_Y.

Esther has income of $80, and she consumes pizza (P) and soda (S). The price of pizza is $10 and the price of soda is $4.

Kyle's utility function is U = 4X + 3.7Y, where X is units of good X and Y is units of good Y. What is the marginal utility of good X?

Bucky has $20 to spend on bowling and billiards. The prices of bowling and billiards are $4 and $1 per game, respectively. Graph Bucky's budget constraint, assuming he has a coupon for two free games of bowling. Place bowling on the x-axis and billiards on the y-axis.

Ernest wants to achieve a utility level of 100. His utility function is U = XY, where MU_X = Y and MU_Y = X. What is the least amount of money (M) that Ernest can spend to achieve a utility level of 100? Ernest's budget constraint is M = 8X + 2Y.

Belle likes to wear either sandals or Crocs, but she always receives 3 times as much marginal utility from an additional pair of Crocs as from an additional pair of sandals. Draw Belle's indifference curve, using a well-labeled diagram.

Suppose that U = min{2X, Y}, where X is units of good X and Y is units of good Y. The price of good X is $4 and the price of good Y is $7. What is the minimum expenditure necessary to achieve a utility level of 100?

For the utility function U(X,Y) = X^0.75Y^0.25, the marginal utility of Y is:

Joan purchases coffee (C), bagels (B) and juice (J). At her current levels of consumption, her MU_C = 10, MU_B = 15, and MU_J = 20. The price of coffee is $2, the price of bagels is $3, and the price of juice is $4. Is the Joan maximizing her utility? If so, why? If not, what must she do to move her consumption toward equilibrium?

The ideal pheasant shell requires that lead shot (L) and gunpowder (G) be used in the following fixed proportion: 1 ounce of lead shot to 18 grains of gunpowder. Graph an indifference curve for 25 shells.

Allen earns $1,000 per week and purchases health care (H) at $200 per unit and non-health-care (N) goods at $50 per unit.

A graph of the utility function U = 4Y + X would reveal that goods X and Y are:

Suppose that MRS_XY = Y/X. As X increases:

List the four properties of utility functions, giving an example of each property.

Use the following to answer question: Figure 4.1 -(Figure 4.1) Sam's grandmother, who is visiting from Florida, gives Sam 10 oranges and 1 pineapple. As a result, Sam will be willing to:

Draw an indifference curve for the utility function U = 0.5XY when utility equals 5. Identify four consumption bundles on the indifference curve along with their respective values of X and Y.