II. Please complete the homework 6 problems on the Aplia Website. (2 points each)
1. If a consumer does not have convex preferences, then a point of tangency between her indifference curve and her budget line must be an optimal bundle.
2. A consumer's utility function is U(x,y)=(x+6)(y+2). If the consumer's consumption of both x and y are doubled, then the consumer's marginal rate of substitution of y for x remains constant.
3. Charlie has the utility function U(xA,xB)=xAxB
where xA denotes number of apples he
has and xB denotes of number of bananas he
has. If his income is $80, the price of apples is $4 per apple and the price of
bananas is $6 per banana, how many apples are there in the best bundle that
Charlie can afford?
4. A consumer's utility function is U(x,y)=y+54x-2x2.
Her income is $166. If the price of x is $38 and the price of y is $1, how many
units of good y will the consumer demand?