Given MUx = X, MUY = 4Y, Price of X is 3 Birr per unit and price of Y is also 3 Birr per unit. If the income of the consumer is 1200 Birr, find the amounts of X and Y that the consumer chooses to consume so as to maximize his utility.

/in /by

Given MUx = X, MUY = 4Y, Price of X is 3 Birr per unit and price of Y is also 3 Birr per unit. If
the income of the consumer is 1200 Birr, find the amounts of X and Y that the consumer chooses
to consume so as to maximize his utility.

You might also like
Assume the following for price discriminating monopolist aimed at maximizing profit. Total demand for the product of the monopolist is Q = 50-5P (P = 100-2Q) · Demand in Market one is Q1= 32-0.4P1(P1= 80-2.5Q1) · Demand in Market two is Q2= 18-0.1P2(P2= 180-10Q2) · Cost function is C = 50+40Q (where Q = Q1+ Q2) a. Find equilibrium quantities (Q1and Q2), b. Find equilibrium prices (P1and P2), c. Calculate profit (π), d. Calculate and Interpret elasticities (ε1 and ε2)
Suppose the demand curve is linear and is given by the equation P = a – bQ where P is price and Q is quantity. What is the consumer surplus if the equilibrium price is P* and equilibrium quantity is Q*?
Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Into which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you have an account; (e) the automobile industry. In each case, justify your classification.
Given the following Cobb Douglas utility function U(X1,X2)=Xc1,Xd2 determining marginal utilities for good X1 and X2 respectively what is the marginal rate of substitution MRSx 1 x 2 and the marginal rate of substitution MRs x 2 x 1 C(y)=10y2+100 what is the supply curve
The income elasticity of the demand for shoes is 0,6. Shoes are * A. AN INFERIOR AND NECESSARY GOOD. * B. A NORMAL AND LUXURY GOOD. * C. A NORMAL AND NECESSARY GOOD. * D. A NORMAL BUT INFERIOR GOOD.
If C1= 30C, C2 = 60C, C3 = 90C and J1 = 50J, J2 = 70J, J3 = 80J; I. Derive the transformation curve. (2 points) II. Superimpose the Edgeworth box diagram of question C on the transformation curve, and determine the general equilibrium and Pareto optimal point of production and distribution.
Suppose the National Institutes of Health publishes a study finding that coffee drinking reduces the probability of getting colon cancer. How do you imagine this will affect the market for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
You are given the following utility function and price of commodities q1 and q2: U = 3q1+q1q2-5q2-15 P1=3 and p2=2 If the corresponding bugdet is 20. i. Write the consumer's budget equation ii.construct a constrained utility maximization problem out of the information given above iii. Write the augmented objective function? Iv. Find the optimum level of U V. Is the second order condition for a maximum satisfied? Vi. Find the levels of q1 and q2 that will satisfy the first order condition for a maximum.