代做Econ 302 Homework 1 B

日期：2024-11-02 12:49

Econ 302
Homework 1 B

1.  (20 points) Suppose a consumer views two goods, X and Y, as perfect complements.  Her utility function is given by U = MIN [2X, Y].  Sketch the graph of the consumers indifference curve that goes through the bundle X = 5 and Y = 4.  Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis.  Which of the three assumptions that we made about consumer preferences is violated in this case?

2.  (20 points) Suppose a consumer has $250 to spend on two goods, Good X and Good Y.  The price of Good X is given by P_X = $10.  The price of Good Y is given by P_Y = $5.  Graph the consumer’s budget constraint.  Please put the quantity of Good X on the horizontal axis, and the quantity of Good Y on the vertical axis.  Be sure to label your graph carefully and accurately.  What is the slope of the budget constraint?

3.  (20 points) Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = X²Y.  In the table below, identify 4 points on the consumer’s indifference curve where U = 1000.

X	Y

4.  (20 points) Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y).  Also, suppose the consumer has $100 to spend and the price of Good X is PX = $1 and the price of Good Y is PY = $2.  If the consumer maximizes their utility subject to their budget constraint, how much of Good X and how much of Good Y will the consumer purchase?

X* =

Y* =

5.  (20 points) Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = X*Y.  Also, suppose the consumer has $200 to spend and the price of Good X is P_X = $2 and the price of Good Y is P_Y = $4.  If the consumer maximizes their utility subject to their budget constraint, how much of Good X and how much of Good Y will the consumer purchase?

X* =

Y* =