Economics Budget Constraint / Bundle Consumption

Related BrainMass Solutions

• On the same graph, indicate this utility maximizing bundle. Suppose that the price of Y fall to $1/unit. Illustrate how this changes Bob's budget constraint.

• Finding the optimal consumption bundle

  Budget constraint is given by 6x1+5x2=64 Put x1=0 x2=64/5=12.8 units x1=0 b.

• Optimization using Lagrangian

  Consumer's Utility is given by: In order to solve for the optimal (original) consumption bundle, we also need Kaidu's budget constraint.

• Indifference Curve, Budget Line & Optimal Utility

  Note the budget constraint can be written as 2x + 2y = 4 6. Solve this budget constraint for y and substitute it into the utility function to obtain an expression for utility that depends on x only. 7.

• Consumer Budget Constarint

  But the maximum satisfaction is associated with the consumption bundle of X1 and Y1 in the graph (point A). c.

• Maximizing Consumer Utility

  On the same graph, indicate this utility maximizing bundle.  Suppose that the price of Y fall to $1/unit.  Illustrate how this changes Bob's budget constraint.  

• budget constraint, indifference curve

  So her consumption bundle is (316, 130). With also note that if she only consumes health care, then she can have 525 times, while if consumes grocery only, then she can have 420 bags.

• Budget Constraint/Indifference Curve

  Diagram a representative budget constraint and indifference curve that passes through bundle A given Annette's budget is exhausted at bundle A. Is Annette maximizing utility? Why or why not?

• Lolita, an intelligent and charming Holstein cow, consumes o

  x2/2+y, where x is her consumption of cow feed and y is her consumption of hay. Lolita has been instructed in the mysteries of budgets and optimization and always maximizes her utility subject to her budget constraint.