Master Microeconomics - Online Tutor

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟲 - 𝗣𝗮𝗿𝘁 𝟭 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=sLsDnaLds6s&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=78

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 𝗳𝗼𝗿 𝗼𝗻𝗲-𝗼𝗻𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗰𝗼𝗮𝗰𝗵𝗶𝗻𝗴 (𝗛𝗼𝘂𝗿𝗹𝘆 𝗿𝗮𝘁𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 $𝟯𝟱 𝗮𝗻 𝗵𝗼𝘂𝗿)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Elmer's utility function is U(x, y) = min{x, y2).

a) If Elmer consumes 4 units of x and 3 units of y, his utility is_____

b) If Elmer consumes 4 units of x and 2 units of y, his utility is_____

c) If Elmer consumes 5 units of x and 2 units of y, his utility is_____

d) On the graph below, use blue ink to draw the indifference curve for Elmer that contains the bundles that he likes exactly as well as the bundle (4, 2).

e) On the same graph, use blue ink to draw the indifference curve for Elmer that contains bundles that he likes exactly as well as the bundle (1, 1) and the indifference curve that passes through the point (16, 5).

f) On your graph, use black ink to show the locus of points at which Elmer's indifference curves have kinks. What is the equation for this curve?

g) On the same graph, use black ink to draw Elmer's budget line when the price of x is 1, the price of y is 2, and his income is 8. What bundle does Elmer choose in this situation?

h) Suppose that the price of x is 10 and the price of y is 15 and Elmer buys 100 units of x. What is Elmer's income? (Hint: At first you might think there is too little information to answer this question. But think about how much y he must be demanding if he chooses 100 units of x.)

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺.

www.youtube.com

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟱 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=gNNR1hFyJsw&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=77

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 𝗳𝗼𝗿 𝗼𝗻𝗲-𝗼𝗻𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗰𝗼𝗮𝗰𝗵𝗶𝗻𝗴 (𝗛𝗼𝘂𝗿𝗹𝘆 𝗿𝗮𝘁𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 $𝟯𝟱 𝗮𝗻 𝗵𝗼𝘂𝗿)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: In her communications course, Nancy also takes two examinations. Her overall grade for the course will be the maximum of her scores on the two examinations. Nancy decides to spend a total of 400 minutes studying for these two examinations. If she spends m1 minutes studying for the first examination, her score on this exam will be x1 = m1/5. If she spends m2 minutes studying for the second examination, her score on this exam will be x2 = m2/10

a) On the graph below, draw a “budget line” showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying. On the same graph, draw two or three “indifference curves” for Nancy. On your graph, find the point on Nancy’s budget line that gives her the best overall score in the course.

b) Given that she spends a total of 400 minutes studying, Nancy will maximize her overall score by achieving a score of ____ on her first examination and _____ on the second examination

c) Her overall score for the course will then be _____

*𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺.

Choice Q5.5 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟰 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=9VPgZaqMl6I&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=76

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 𝗳𝗼𝗿 𝗼𝗻𝗲-𝗼𝗻𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗰𝗼𝗮𝗰𝗵𝗶𝗻𝗴 (𝗛𝗼𝘂𝗿𝗹𝘆 𝗿𝗮𝘁𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 $𝟯𝟱 𝗮𝗻 𝗵𝗼𝘂𝗿)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Nancy Lerner is trying to decide how to allocate her time in studying for her economics course. There are two examinations in this course. Her overall score for the course will be the minimum of her scores on the two examinations. She has decided to devote a total of 1,200 minutes to studying for these two exams, and she wants to get as high an overall score as possible. She knows that on the first examination if she doesn’t study at all, she will get a score of zero on it. For every 10 minutes that she spends studying for the first examination, she will increase her score by one point. If she doesn’t study at all for the second examination she will get a zero on it. For every 20 minutes she spends studying for the second examination, she will increase her score by one point.

a) On the graph below, draw a “budget line” showing the various combinations of scores on the two exams that she can achieve with a total of 1,200 minutes of studying. On the same graph, draw two or three “indifference curves” for Nancy. On your graph, draw a straight line that goes through the kinks in Nancy’s indifference curves. Label the point where this line hits Nancy’s budget with the letter A. Draw Nancy’s indifference curve through this point.

b) Write an equation for the line passing through the kinks of Nancy’s indifference curves.

c) Write an equation for Nancy’s budget line.

d) Solve these two equations in two unknowns to determine the intersection of these lines. This happens at the point (x1, x2) = ____

e) Given that she spends a total of 1,200 minutes studying, Nancy will maximize her overall score by spending ___ minutes studying for the first examination and ___ minutes studying for the second examination.

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺.

Choice Q5.4 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 - 𝗣𝗮𝗿𝘁 𝟲 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=JQPEFr7GeRw&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=75

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 𝗳𝗼𝗿 𝗼𝗻𝗲-𝗼𝗻𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗰𝗼𝗮𝗰𝗵𝗶𝗻𝗴 (𝗛𝗼𝘂𝗿𝗹𝘆 𝗿𝗮𝘁𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 $𝟯𝟱 𝗮𝗻 𝗵𝗼𝘂𝗿)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺.

Choice Q5.3 - Part 6 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟱 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=0eUTsxIu2MU&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=75

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺.

Choice Q5.3 - Part 5 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟰 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=6nqek6DaW7s&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=74

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.3 - Part 4 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟯 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=XvioYO8kfOE&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=73

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 𝗳𝗼𝗿 𝗼𝗻𝗲-𝗼𝗻𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗰𝗼𝗮𝗰𝗵𝗶𝗻𝗴 (𝗛𝗼𝘂𝗿𝗹𝘆 𝗿𝗮𝘁𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 $𝟯𝟱 𝗮𝗻 𝗵𝗼𝘂𝗿)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.3 - Part 3 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟮 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=PdRmoNQ8dF8&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=72

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.
a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.3 - Part 2 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟭 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=tQAelnnEQm8&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=71

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.3 - Part 1 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟯 𝗣𝗮𝗿𝘁-𝟭 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=tQAelnnEQm8&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=70

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Ambrose, the nut and berry consumer, has a utility function U(x1,x2) = 4*square root of x1 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries.

a) The commodity bundle (25,0) gives Ambrose a utility of 20. Other points that give him the same utility are (16,4), (9, __ ), (4, __ ) , (1, __), and (0, ___ ). Plot these points on the axes below and draw a red indifference curve through them.

b) Suppose that the price of a unit of nuts is 1, the price of a unit of berries is 2, and Ambrose’s income is 24. Draw Ambrose’s budget line with blue ink. How many units of nuts does he choose to buy?

c) How many units of berries?

d) Find some points on the indifference curve that gives him a utility of 25 and sketch this indifference curve (in red).

e) Now suppose that the prices are as before, but Ambrose’s income is 34. Draw his new budget line (with pencil). How many units of nuts will he choose? How many units of berries?
The optimal consumption position is where the indifference curve is tangent to the budget line.

f) Now let us explore a case where there is a “boundary solution.” Suppose that the price of nuts is still 1 and the price of berries is 2, but Ambrose’s income is only 9. Draw his budget line (in blue). Sketch the indifference curve that passes through the point (9, 0). What is the slope of his indifference curve at the point (9, 0)?

g) What is the slope of his budget line at this point?

h) Which is steeper at this point, the budget line or the indifference curve?

i) Can Ambrose afford any bundles that he likes better than the point (9, 0)?

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.3 - Part 1 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟮 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=Xp1bR5ZkSwk&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=69

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

Clara's utility function is U(X,Y) = (X+2)(Y+1), where X is her consumption of good X and Y is her consumption of good Y.

a) Write an equation for Clara's indifference curve that goes through the point (X,Y) = (2,8) , Y = ____. On the axis below, sketch Clara's indifference curve for U = 36.

b) Suppose that the price of each good is 1 and that Clara has an income of 11. Draw in her budget line. Can Clara achieve a utility of 36 with this budget?

c) At the commodity bundle, (X, Y ), Clara’s marginal rate of substitution is .

d) If we set the absolute value of the MRS equal to the price ratio, we have the equation .

e) The budget equation is ______________

f ) Solving these two equations for the two unknowns, X and Y , we find X = ____ and Y = ______ .

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.2 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟭- 𝗣𝗮𝗿𝘁-𝟯 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=w_sv7uJRKIQ&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=68

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: We begin again with Charlie of the apples and bananas. Recall that Charlie's utility function is U(xa,xb) = xa.xb. Suppose that price of apples is 1 and price of bananas is 2, and Charlie's income is 40.

a) On the graph below, use blue ink to draw Charlie’s budget line. (Use a ruler and try to make this line accurate.) Plot a few points on the indifference curve that gives Charlie a utility of 150 and sketch this curve with red ink. Now plot a few points on the indifference curve that gives Charlie a utility of 300 and sketch this curve with black ink or pencil.

b) Can Charlie afford any bundles that give him a utility of 150?

c) Can Charlie afford any bundles that give him a utility of 300?

d) On your graph, mark a point that Charlie can afford and that gives him a higher utility than 150. Label that point A.

e) Neither of the indifference curves that you drew is tangent to Charlie's budget line. Let's try to find one that is. At any point, (XA, XB), Charlie's marginal rate of substitution is a function of XA and XB. In fact, if you calculate the ratio of marginal utilities for Charlie's utility function, you will find that Charlie's marginal rate of substitution is MRS (XA, XB) = -XB/XA. This is the slope of his indifference curve at (XA, XB). The slope of Charlie's budget line is (give a numerical answer).

f) Write an equation that implies that the budget line is tangent to an indifference curve at (Xд, XB). There are many solutions to this equation. Each of these solutions corresponds to a point on a different indifference curve. Use pencil to draw a line that passes through all of these points.

g) The best bundle that Charlie can afford must lie somewhere on the line you just penciled in. It must also lie on his budget line. If the point is outside of his budget line, he can't afford it. If the point lies inside of his budget line, he can afford to do better by buying more of both goods. On your graph, label this best affordable bundle with an E. This happens where XA and Xb =. Verify your answer by solving the two simultaneous equations given by his budget equation and the tangency condition.

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.1 - Part 3 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...

𝗖𝗵𝗼𝗶𝗰𝗲 𝗤𝟱.𝟭 - 𝗣𝗮𝗿𝘁 𝟮 (𝗙𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻)

https://www.youtube.com/watch?v=LSPoLh-DKIg&list=PLyqDMruigg0KMCTFezZc6TlDZ5G0ynWsD&index=67

𝗪𝗵𝗮𝘁𝘀𝗮𝗽𝗽 +𝟵𝟭-𝟵𝟱𝟲𝟬𝟱𝟲𝟬𝟬𝟴𝟬 for one-one online microeconomics coaching (Hourly rate starting $35 an hour)

𝗢𝗻𝗹𝗶𝗻𝗲 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗣𝗮𝗴𝗲: https://www.eduspred.com/pages/help-microeconomics-econometrics-statistics-tutor

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻: We begin again with Charlie of the apples and bananas. Recall that Charlie's utility function is U(xa,xb) = xa.xb. Suppose that price of apples is 1 and price of bananas is 2, and Charlie's income is 40.

a) On the graph below, use blue ink to draw Charlie’s budget line. (Use a ruler and try to make this line accurate.) Plot a few points on the indifference curve that gives Charlie a utility of 150 and sketch this curve with red ink. Now plot a few points on the indifference curve that gives Charlie a utility of 300 and sketch this curve with black ink or pencil.

b) Can Charlie afford any bundles that give him a utility of 150?

c) Can Charlie afford any bundles that give him a utility of 300?

d) On your graph, mark a point that Charlie can afford and that gives him a higher utility than 150. Label that point A.

e) Neither of the indifference curves that you drew is tangent to Charlie's budget line. Let's try to find one that is. At any point, (XA, XB), Charlie's marginal rate of substitution is a function of XA and XB. In fact, if you calculate the ratio of marginal utilities for Charlie's utility function, you will find that Charlie's marginal rate of substitution is MRS (XA, XB) = -XB/XA. This is the slope of his indifference curve at (XA, XB). The slope of Charlie's budget line is (give a numerical answer).

f) Write an equation that implies that the budget line is tangent to an indifference curve at (Xд, XB). There are many solutions to this equation. Each of these solutions corresponds to a point on a different indifference curve. Use pencil to draw a line that passes through all of these points.

g) The best bundle that Charlie can afford must lie somewhere on the line you just penciled in. It must also lie on his budget line. If the point is outside of his budget line, he can't afford it. If the point lies inside of his budget line, he can afford to do better by buying more of both goods. On your graph, label this best affordable bundle with an E. This happens where XA and Xb =. Verify your answer by solving the two simultaneous equations given by his budget equation and the tangency condition.

𝗧𝗵𝗲 𝗮𝗯𝗼𝘃𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗮𝗸𝗲𝗻 𝗳𝗿𝗼𝗺 '𝗪𝗼𝗿𝗸𝗼𝘂𝘁𝘀 𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗠𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 - 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵' 𝗯𝘆 𝗛𝗮𝗹 𝗩𝗮𝗿𝗶𝗮𝗻 𝗮𝗻𝗱 𝗧𝗵𝗲𝗼𝗱𝗼𝗿𝗲 𝗖 𝗕𝗲𝗿𝗴𝘀𝘁𝗿𝗼𝗺

Choice Q5.1 - Part 2 (From 'Workouts in Intermediate Microeconomics' by Hal Varian) Whatsapp +91-9560560080 for one-one online Microeconomics, Statistics or Econometrics coaching. Our Online Coaching Page: https://www.eduspred.com/pages/help...