Question: need help with these questions John Snow has utility function U(x1 , X2) = min {2x1, x2 }.His income is Rs. 40 and prices are
need help with these questions



John Snow has utility function U(x1 , X2) = min {2x1, x2 }.His income is Rs. 40 and prices are (P1,P2) = (2, 1). If the price of good 2 rises to p2 = 3, which of the following will occur? Select one: O a. The income effect causes John to consumer 5 fewer units of good 2. O b. The income effect causes John to consume 5 fewer units of good 1. O c. The substitution effect causes John to consume 5 fewer units of good 1. O d. The substitution effect causes John to consume 10 fewer units of good 2.Jessica's utility is U(x1 , X2) = 0.4 In x1 + 0.6 In x2 .The prices of good 1 and good 2 are Rs.2 and Rs.4, respectively and her income is m. What consumption bundle does she choose? Select one: m 3m O a. ( 15 ) 10 O b. ( m 3m 5 ' 20 m O c. ( ?' 2 3m O d. ( 3'5If we graph Gaurav's indifference curves with apples on the horizontal axis and oranges on the vertical axis, then the slope of his indifference curve is 2. Gaurav would be indifferent between a bundle with 4 apples and 16 oranges and another bundle that has 6 oranges and Select one: 0 a. 5 apples 0 b. 9 apples 0 c. 24 apples 0 d. 6 apples
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