Derive the demand curve y = f (p) for the following utility function: u (x,y) =...
Derive the demand curve y = f (p) for the following utility function:
u (x,y) = x ⅔ y ⅓ The total budget m = 200
Explain the relationship between price change and revenue change in this case
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Derive the demand curve y = f (p) for the following utility
function:
u (x,y) =...
1. Chuck has the following quasi-linear utility function: a) Derive Chuck's demand curve for x as...
1. Chuck has the following quasi-linear utility function: a) Derive Chuck's demand curve for x as a function of P,and P b) Derive Chuck's demand for for y c) Is y a normal good?
Derive the demand curve for good X for the utility function U=3X^4Y^2. Show your work.
Derive the demand curve for good X for the utility function U=3X^4Y^2. Show your work.
answer e and f only please Exercise 3. Slutsky (Quasilinear) The utility function is u =...
answer e and f only please
Exercise 3. Slutsky (Quasilinear) The utility function is u = x + xy, and the budget constraint is m=P,X, + P2XZ. a) Derive the optimal demand curve for good 1, x,(PP2), and good 2, x2(m, PP.). b) Looking at the cross price effects (@x_/ôp, and Ox_/ôp.) are goods x, and X, substitutes or complements? Looking at income effects (@x,lôm and Ox_lām) are goods x, and X, inferior, normal or neither? c) Assume m=100, =0.5...
3. Suppose an individual has perfect-complements preferences that can be represented by the utility function U(x,y)=...
3. Suppose an individual has perfect-complements preferences that can be represented by the utility function U(x,y)= min[3x,2y]. Furthermore, suppose that she faces a standard linear budget constraint, with income denoted by m and prices denoted by px and p,, respectively. a) Derive the demand functions for x and y. b) How does demand for the two goods depend on the prices, p, and p, ? Explain.
1) Given the following demand function Q=8.5-p+0.1y a) Derive a formular for the price elasticity of...
1) Given the following demand function Q=8.5-p+0.1y a) Derive a formular for the price elasticity of demand and income elasticity of demand. b) find the elasticity if p=6 and y=1000 c) what will happen to price elasticity of demand if income varies. d) what will happen to income elasticity of demand if income varies. e) derive the total revenue function. show that the relationship between price and revenue depends on elasticity (Assume y = 0).
Consider a customer (i) with a utility function u(x, y) = 200x − 25x2 + y...
Consider a customer (i) with a utility function u(x, y) = 200x − 25x2 + y where the price of good x is $p, and the price of the composite good y is one dollar ($1). Also, assume that each consumer has an income I. (MUx=200-50x , and MUy=1) Derive the consumer's demand function for good x. Now, consider an economy with 100 exact same type of consumers. Calculate an aggregate demand for only good x. Now, consider a firm...
Suppose a consumer has the following utility function: u(x,y) = x??(1-?) Price o f x= $3,...
Suppose a consumer has the following utility function: u(x,y) = x??(1-?) Price o f x= $3, price of ? = $7, and ? (alpha) = 0,3. a) what is the Hicksian demand for goods x and y? Use the LaGrange method or MRS. b) Draw the graph of the minimization (budget constraint). Please provide step behind the solution. Thanks!
Suppose a consumer has the following utility function: u(x,y) = x??(1-?) Price o f x= $3,...
Suppose a consumer has the following utility function: u(x,y) = x??(1-?) Price o f x= $3, price of ? = $7, and ? (alpha) = 0,3, and wage=10. a) what is the Hicksian demand for goods x and y? Use the LaGrange method or MRS. b) Draw the graph of the minimization (budget constraint). Please provide step behind the solution. Thanks!
The utility function is given by U(x, y) = xy2 . (a) Write out the demand...
The utility function is given by U(x, y) = xy2 . (a) Write out the demand functions for goods x and y in terms of I, px, and py. (b) What is the maximum utility the consumer can achieve as a function of I, px, and py? (c) What is the minimum the consumer needs to spend to achieve a level of utility U as a function of px, and py? (d) The initial income is $576, initial prices are...
The utility function is given by U(x, y) = xy2 . (a) Write out the demand...
The utility function is given by U(x, y) = xy2 . (a) Write out the demand functions for goods x and y in terms of I, px, and py. (2) (b) What is the maximum utility the consumer can achieve as a function of I, px, and py? (2) (c) What is the minimum the consumer needs to spend to achieve a level of utility U as a function of px, and py? (2) (d) The initial income is $576,...
1. Chuck has the following quasi-linear utility function: a) Derive Chuck's demand curve for x as a function of P,and P b) Derive Chuck's demand for for y c) Is y a normal good?
answer e and f only please
Exercise 3. Slutsky (Quasilinear) The utility function is u = x + xy, and the budget constraint is m=P,X, + P2XZ. a) Derive the optimal demand curve for good 1, x,(PP2), and good 2, x2(m, PP.). b) Looking at the cross price effects (@x_/ôp, and Ox_/ôp.) are goods x, and X, substitutes or complements? Looking at income effects (@x,lôm and Ox_lām) are goods x, and X, inferior, normal or neither? c) Assume m=100, =0.5...
3. Suppose an individual has perfect-complements preferences that can be represented by the utility function U(x,y)= min[3x,2y]. Furthermore, suppose that she faces a standard linear budget constraint, with income denoted by m and prices denoted by px and p,, respectively. a) Derive the demand functions for x and y. b) How does demand for the two goods depend on the prices, p, and p, ? Explain.
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