1. Suppose Harry has the utility function for apples and candy as following:?X+3?Y, where X is the quantity of apples, and Y is the quantity of candy. marginal utility of X is1/2?X and the marginal utility of Y is3/2Y^(-1/2). What isHarry's marginal rate of substitution for candy with apples?

1. Jenna consumes only Apples and Bananas. The price of Apples is $3, while the price of Bananas is $34. Jenna bought 17 of Apples and 5 of Bananas. If shespent all of hermoney on the goods, what was herbudget?

1. Emily purchases only sirloin steaks and carrots. Herutility function isU(S,C)=4?S?C+48?S. The marginal utility of sirloin steaks is4?C+48 and the marginal utility of carrots is4?S. The price of sirloin steaks is $108 and the price of carrots is $4. Emily spent all of her income to purchase 3 sirloin steaks and 36 carrots.

a)What was her initial budget?

b)What is Emily's marginal rate of substitution MRS (S, C) at the current bundle of goods?

c) Is the current bundle the optimal bundle for Emily?

d)If not, what should she do to obtain higher utility? buy more sirloin steaks or sell carrots or buy more carrots or sell sirloin steaks

1. Hermione wants to buy lemons and chocolate bars for the weekend.Hermione's weekly income is $ 105. The price oflemons is $ 7 per unit, andprice ofchocolate bars is $ 3 per unit. SupposeHermione draws a buget line to make decisions, andHermione puts the quantity oflemons on the y-axis, andputs the quantity ofchocolate bars on the x-axis.

a) What is the slope ofHermione's budget constraint? Please enter your answer in fraction form:

b) IfHermione spends all of hermoney onlemons, findthe amount oflemons Hermione purchased

c) IfHermione spends all of hermoney onchocolate bars, findthe amount ofchocolate barsHermione purchased:

Suppose that your preferences are defined over food and leisure. Food is purchased with income earned through working. You have 18 hours a day that you divide between work and leisure. Assume food, F , costs $1 per unit and your income is equal to your wage, in , times hours worked, HW . All of your income is spent on food. Assume that your preferences are such that you always consume 12 units of food for every hour of leisure, H L , that you enjoy. Hence L = 12 . HL lfw= 12, How much time will you spend working? HW = :] [B How much leisure time will you enjoy? HL = [: [E Find the labour supply function in terms of wage, to . Leave numbers as fractions. Hwiw>= :lns