2) A consumer’s utility function is
u(x,y)=-1/3x^3 - 1/y
(a) Find the consumer’s optimal choice for x as a function of income I and prices px,py.
2) A consumer’s utility function is u(x,y)=-1/3x^3 - 1/y (a) Find the consumer’s optimal choice for...
4) A consumer’s utility function is u(x, y) = min{x, 3y} (a) Find the consumer’s optimal choice for x, y as functions of income I and prices px,py. (b) Sketch the demand curve for y as a function of other price px when py = 10, I = 100. Suggestion: a picture showing the budget set, optimal choice and indifference curve. (I need help with the sketching which is the second part)
3) A consumer's utility function is 2y (a) Find the consumer's optimal choice for x, y as functions of income I and prices px,py. (Be careful!) (b) Sketch the demand curves for x, y as functions of income I when prices are px = 16, p,-2. (Be careful!)
3) A consumer's utility function is u(x,y)22 (a) Find the consumer's optimal choice for x, y as functions of income I and (b) Sketch the demand curves for x, y as functions of income I when prices prices pa,Py. (Be careful!) are p 16,Py 2. (Be careful!)
2) A consumer's utility function is a(x,y) = (a) Find the consumer's optimal choice for x as a function of income I and prices px,Py' (b) Sketch the demand curve for x as a function of its own price Pz when py = 10, 1 = 100. (It may be easiest to plot a few points.)
Suppose that a consumer’s utility function is U(x,y)=xy+10y. the marginal utilities for this utility function are MUx=y and MUy=x+10. The price of x is Px and the price of y is Py, with both prices positive. The consumer has income I. (this problem shows that an optimal consumption choice need not be interior, and may be at a corner point.) Assume first that we are at an interior optimum. Show that the demand schedule for x can be written as...
2) A consumer's utility function is a(x,y) =- 3x3 y (a) Find the consumer's optimal choice for x as a function of income I and prices pa,Py. (The answer is a little messy.) (b) Sketch the demand curve for x as a function of income I when prices are Pz 2,Py-32. (It may be easiest to plot a few points.)
2. Consider a utility function that represents preferences: u(x,y)= min{80x,40y} Find the optimal values of x and y as a function of the prices px and py with an income level m. (5)
2) A consumer's utility function is 3x3 y (a) Find the consumer's optimal choice for x as a function of income I and prices pa,Py. (The answer is a little messy.) (b) Sketch the demand curve for x as a function of income I when prices are P 2,Py 32. (It may be easiest to plot a few points.)
In Problems 5 - 7, you are given the utility function u(x, y), income I and two sets of prices: initial prices px,py and final prices p,%-For each problem, you are to find: (a) the optimal choice at the initial prices (b) the optimal choice at the final prices (c) the change- optimal choice at final prices - optimal choice at initial prices (d) the income effect and the substitution effect 5) u(x, y)-min(x, 3y), 1-14, p.-1, p,-2. p,-2, p,-2
Question 7 In Problems 5 - 7, you are given the utility function u(x, y), income I and two sets of prices: initial prices px,py and final prices p,%-For each problem, you are to find: (a) the optimal choice at the initial prices (b) the optimal choice at the final prices (c) the change- optimal choice at final prices - optimal choice at initial prices (d) the income effect and the substitution effect 5) u(x, y)-min(x, 3y), 1-14, p.-1, p,-2....