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why is there no inclusion of the parameter z in the solutions and the budget constraint?
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- The budget constraint for a consumer who only buys apples (A) and bananas (B) is PAA + PBB = I where consumer income is I, the price of apples is PA, and the price of bananas is PB. To plot this budget constraint in a figure with apples on the horizontal axis, we should use a budget line represented by what slope-intercept equation?Write down the equation for the budget constraint and then graph it for .. Px = $100 Py = $25 Income = $5,000.00Does a Budget constraint has only one individual indifference curve? Does every isocost line has a individual isoquant curve?
- Task 3: Pizza or Beer? Tom is a student and Maastricht university and his diet consists of beer and pizza. He's utility function for pizza and beer is given by U(B, P) = VBVPDefine Optimization in an indifference curve along with relevant examples?Suppose a consumer purchases food X and clothing Y. The utility function of the consumeris given by: U(X,Y ) = XY + 5Y and the budget /income/ of the consumer is 200 ETB. Andalso the price of food is X P and the price of clothing is Y P . Then drive the equation ofconsumer’s demand function for food and clothing.
- A utility function is given by the equation U = 20xe¬0.1x, where x is the number of glasses of wine consumed. (a) Show that this utility function has a maximum value and calculate the maximum utility. (b) Describe how marginal utility changes for glasses of wine consumed after the maximum utility is reached. Do you consider this reasonable? Give an explanation.Anna has an income of 1000 euros and utility function U(x,y)=x²y³. The prices of the two goods are P₁=5 and Py-20. a) Define the budget constraint and represent it graphically. (For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y) =x^3 y^2 c) U(x, y) =min(x, 2y)
