MICROECONOMICS: Utility, Consumers optimal choice

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1. A consumer’s utility function is given by U = XY . a. What is the utility derived from 1 unit of X and 2 units of Y ? What is the utility derived from 2 units of X and 1 units of Y ? What is the utility derived from 5 units of X and 2 units of Y ? b. How does the consumer rank the following bundles?

4. Remember Anny Knowsmuch? Now she is trying to decide how to allocate her time in studying for her technology 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 id 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. Foe 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 examns that she can achieve with a total of 1,200 minutes of studying. On the same graph, draw two or three “indifference curves” for Anny. On your graph, draw a straight line that goes through the kinks in 2 Anny’s indifference curves. Label the point where this line hits Anny’s budget with the letter A. Draw Anny’s indifference curve through this point

6. Andrea spends his income on tennis balls (B) and guitar picks (P). Tennis balls are priced at $10, while a package of guitar picks costs $3. Assume that Andrea has $50 to spend and his utility function can be represented as U(B, P) = B0.5P 0.5 . a. What is the optimal number of tennis balls and guitar picks for Andrea to purchase? How much utility does this combination bring him? b. If the price of guitar picks doubles to $6, how much income must Andrea have to maintain the same level of utility? c. In a graph draw what happens to the optimal choice if the price of tennis balls increases to $13. Find the new optimal choice (mathematically)

Sample Solution

re confined as a result of the ban put on them. Just turkey and Azerbaijan perceive the air terminals. Direct and contract flights occur from different nations yet should stopover in turkey.

There is no accessible railroad framework in North Cyprus making the thruways the significant methods for transportation between significant urban areas. The streets are generally double carriageways, cleared and flawlessly kept up. A decent reasonable system of transports that works between all the principle towns; additionally for guests, numerous cabs or lease a-vehicle administrations are accessible at the air terminal just as at significant towns.

North Cyprus has two fundamental ports in Gazimağusa and Girne where ferryboat organizations work standard administrations to Turkey. Exchange to TRNC is for the most part done through Gazimağusa port. Notwithstanding Girne Yacht Harbor and Gemyat Delta Marina (in Kyrenia New Harbor), Ercan Airport as of late manufactured Kar-paz Gate Marina in Karpas Peninsula has a perfect area to have around 300 yachts from numerous nations of the world, other than offering different other facilities[53].

The nation works a left hand drive framework, traffic and street signs are of universal norms with greatest speed of 100kph. Safety belts are compulsory and drivers are disallowed to drive affected by liquor. Person on foot paths are accommodated simple strolling around in the towns

4.4.5. Cooking

Nourishment in North Cyprus is extremely scrumptious and has such huge numbers of assortments; from succulent kebabs to heavenly meze and sweet, clingy pastries.

North Cyprus cooking is a blend diverse conventional food of different nations, for example, Turkey, Greece, Lebanon, France, Italy, Syria and Armenia; this is so in light of the fact that not exclusively is north Cyprus deliberately situated at the junction of Europe, Asia and north Africa yet in addition numerous developments which vanquished the island deserted a few follows in the nourishments which are as yet delighted in even till today [54].

Table 9: a portion of the nearby nourishment claims to fame of North Cyprus

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