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(Solved): Please solve all 3 parts 4. An individual's preferences over books (B) and snacks (S) are represent ...



4. An individuals preferences over books (B) and snacks (S) are represented by the utility function, \( U(B, S)=\left[B^{I /Please solve all 3 parts

4. An individual's preferences over books (B) and snacks (S) are represented by the utility function, . According to the MRS, what's the maximum number of books the individual would be willing to give up for one more snack, if the individual currently has 16 snacks and 4 books? a. 4 b. c. 2 d. 5. An individual has preferences represented by the utility function: . Which of the following statements is TRUE concerning her marginal rate of substitution of for ? a. If the individual has 10 units of and 10 units of , she would be willing to trade a maximum of units of to get 1 additional unit of . b. If the individual has 3 units of and 4 units of , she would be willing to trade a maximum of 2 units of to get 1 additional unit of . c. If the individual has 2 units of and 4 units of , she would be willing to trade a maximum of 4 units of to get 3 additional units of . d. If the individual has 10 units of and 5 units of , she would be willing to trade a maximum of 4 units of to get 1 additional unit of . e. All the statements above are false. 6. Kassia's preferences are monotonic in both and . Moreover, she is willing to give up increasing amounts of good for each additional unit of good X. Which of the following utility functions could represent Kassia's preferences? a. b. c. d.


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4. Answer is option (d) i.e
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