Question: Suppose that a consumer's utility function is u(x, y) = kx+y, where k is a positive integer. Suppose that the equation of the budget

Suppose that a consumer's utility function is u(x, y) = kx+y, where k is a positive integer. Suppose that the equation of the budget line is y = -3x+9. Suppose that the consumer has more than one optimal bundle. (Note that an optimal bundle is one that, among all the affordable bundles, maximizes utility). Then, k is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The fact that the consumer has more than one optimal bundle indicates indifference curves with a per... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

What is the Net Profit Margin, Gross Profit Margin, and the Return on Assets? Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares, which are reflected in thousands,...

Suppose that the person with the above utility function is struck by lightning. He survives, except now his utility function is u = 1 log(x1 1) + 2 log(x2 2). Will his consumption decisions change...

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...

COBECON Term 2 AY 2021-2022 Problem Set 2 (50 pts) Instructions: 1. Problem sets are to be submitted individually but you can answer with your classmates. It is advisable that you work on the problem...

man598 4. (20 points) Consider the following model of the labor market, with labor supply Ls and labor demand Ld respectively given as a function of the wage by: Ls = aw +l Ld = f w: (a) (2 points)...

Please answer all questions with explanations Consumer Choice Model 1. Elizabeth has the following utility function for goods X and Y: U =X Y. Her income is $300 per unit of time, the price of X...

ecoty 1. Suppose that a consumer with utility U(x1, 12) is given an initial endowment 71, 12 so that his total budget set is pill , p232 (a) Derive a formula for the slutsky equation with endowments...

Do Homework - Chapter 10 Homework - Google Chrome X "mylab.pearson.com/Student/PlayerHomework.aspx?homeworkld=659493833&questionld=1&flushed=false&cld=7584450¢erwin=yes BUS 505 Multinational...

Suppose an individual had a utility function given by: U = XSY 1 . Calculate this individual's Marginal Rate of Substitution (MRSxy) when they have a bundle with 3 units of Good X and 1.5 units of...

Dalhousie University - Econ-2200 * Note: The most relevant sections of the textbook are 5.1, 5.2 and 3.3 but the material builds on earlier content. 1) Suppose that Fernando has the utility function...

1. Undeniably, breaking even is not the ultimate goal of firms. Why then bother about break-even analysis? [Deliverable: a 2-page paper; font, Calibri; font-size, 12; line spacing, 1. 5] 2. Though...

ZARA, a Spanish fashion giant, has redefined fast fashion. Founded in 1 9 7 5 by Amancio Ortega, ZARA boasts over 2 , 0 0 0 stores in 9 6 countries, a testament to its rapid global expansion. Their...

JOHOR BARU: Fresh graduates face new challenges and stiff competition looking for jobs in the coming years due to the economic downturn caused by the Covid-19 pandemic. Universiti Teknologi Malaysia...

Indicate the proper accounting for the following items. (a) Organization costs. (b) Advertising costs. (c) Operating losses.

Presented below is selected information related to Garryowen Company at December 31, 2019. Garryowen reports financial information monthly. (a) Determine the total assets of Garryowen Company at...

(Multiple choice) 1. Under the modified accrual basis of accounting, when are revenues considered to be available? a. When earned b. When cash is received c. When measurable with reasonable accuracy...

Lou Lewis, the president of the Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. a. Lewisville Company is currently leasing the warehouse to...

Using the data from Exercises 3-1 and 3-2, prepare financial statements for May, including income statement, retained earnings statement, balance sheet, and statement of cash flows.

a representation by management embodies in the financial statements that has at least a resonable possibility of being materially misstated in audit terms

Suppose that a firm's production function is given by Q = KL + K, with MPK = L + 1 and MPL = K. At point A, the firm uses K = 3 units of capital and L = 5 units of labor. At point B, along the same...

Suppose that the total cost of providing satellite television services is as follows: where Q1 and Q2 are the number of households that subscribe to a sports and movie channel, respectively. Does the...

What can you say about the returns to scale of the Leontief production function Q = min (aK, bL), where a and b are positive constants?

Name one way that technology has had an impact on quality management.

List and briefly explain the dimensions of goods and service quality.

Briefly summarize the elements of ISO 9001.