What is the slope of the budget constraint

Assignment Help Business Economics
Reference no: EM13853328

Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.

a. Find Gene’s MRSx,y

b. Is the MRSx,y increasing, decreasing, or constant with respect to X?

c. What is the slope of the budget constraint?

d. Find the optimal X and Y.

e. At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.

Reference no: EM13853328

Questions Cloud

What is the slope of the above budget constraint : Sidney makes $200 per week. She buys only two items: pizza and beer. The price of a pizza is $5 and the price of each beer is $2. What is the y-axis intercept for the above budget constraint? What is the x-axis intercept for the above budget constrai..
Find his optimal bundle of coffee and donuts : Billie Joe loves Krispy Kreme donuts and coffee. Billie Joe likes to eat 3 donuts (D) for each cup of coffee (C) he drinks. His utility function is: U = min(0.333D, C). The price of each donut is $0.60 and the price of coffee is $2.20. Given Billie J..
Index models-capm and apt : Download 61 months (September 2010 to September 2015) of monthly data for the SPDR S&P 500 Index ETF (symbol = SPY). Download 61 months (September 2010 to September 2015) of Microsoft Corporation data (symbol = MSFT) and 61 months (September 2010 ..
Explain how the internet challenges the protection : Explain how the Internet challenges the protection of individual privacy and intellectual property.  What should governments do, if anything, to protect their citizens?   Include reference to source material for this discussion.
What is the slope of the budget constraint : Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.  What is the slope of the budget constraint? Find Gene’s MRSx,y. Is the MRSx,y increasing, decreasing, or constant with respect to X?
Determine the expected tail loss : Determine the Value-at-Risk (VaR), denominated in Australian dollars, for the portfolios provided - Determine the Expected Tail Loss (ETL), denominated in Australian dollars, for the portfolios provided below using the results from
Find the utility maximizing choice of food and clothing : Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
What types of economic activities are most prominent there : Describe the economic status of South Korea. What types of economic activities are most prominent there? What factors have led to your region's growth or lack thereof?
How does the ad portray its brand : How does the ad portray its brand

Reviews

Write a Review

Business Economics Questions & Answers

  Good stock-based mutual fund

A good stock-based mutual fund should earn at least 8% per year over a long period of time. Consider the case of Barney and lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.

  What nation grew at a constant rate over these years

If each nation grew at a constant rate over these years, in which year did the U.S. overtake the U.K. in terms of average income.

  Country could increase national saving rate and therefore

In the post war period, a country could increase the national saving rate and therefore: The depreciation rate in United State is about 4% and population growth rate is 0.9% in 2012 and the technology growth rate is 2.1%. According to the Solow model..

  Find the marginal social benefit of building

There are 2 fishermen, Zach and Jacob, who fish along a certain coast. Both would benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional lighthouse is $25. The demand curves for lighthouses ar..

  Show the marginal revenue product curves

Draw a graph that shows the marginal revenue product curves of the two franchises. Make sure your axes are properly labeled. Show the equilibrium level of competitive balance and the equilibrium level of player salaries.

  Q1 when crude oil price controls were in place illustrate

q1. when crude oil price controls were in place illustrate what would have been the welfare implications of a ban on

  If nonbinding price floor is imposed on market

If a nonbinding price floor is imposed on a market, then:

  Command system to market system

In this table below, Agoira moves from a command system to a market system

  Evaluate the relative importance of economies of scale

Evaluate the relative importance of economies of scale and comparative advantage in causing the following.

  Explain why this is or is not a logical decision

In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.

  Quantitative easing campaign after fed has already lowered

Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.

  When cyclical unemployment increases and other things remain

When cyclical unemployment increases and other things remain the same, ______. The U.S. labor force participation rate ______.Withdrawals move from employed to not in the labor force. people who voluntarily quit their jobs are colled job leavers.

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