Intermediate Microeconomics Homework Help!
The consumer has an endowment (w1, w2) of goods X and Y. The consumer can buy and sell the two goods at Px and Py, respectively.
The utility function: U(x,y) = 10ln(x)+5ln(y)
Please answer Questions 1-3 in order.
1. What is the net demand for good X.
2. What values of Py will the consumer be a net demander of good Y?
3. Px=$12 and (w1,w2)=(10,15). What value of Py is the consumer's utility the lowest? Why?
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is...
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is 1. Hi S income is 1. His utility is given by is * and y. Px is the price of x. Py is the price of a) Calculate consumer's optim U(x,y) = xy s optimal choice of x and y under his budget.hu uncompensated demand) b) Derive the indirect utility function. c) Are these two goods normal goods? Why d) Derive the expenditure function....
4. General Equilibrium An economy consists of two consumers, indexed by j = A, B, who...
4. General Equilibrium An economy consists of two consumers, indexed by j = A, B, who consume two goods x, and x2. The first consumer's endowment of the two goods is (W1,W4) = (2,4), and the second consumer's endowment is (w,w) = (5,1), where w/ denotes consumer j's endowment of good i. a. Suppose the preferences of the two consumers are described by the utility functions U,(x) = (x^)(x4)4 and U2(x) = xPx, where x denotes consumer j's consumption of...
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...
Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A...
Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 3 units of good X and 5 units of good Y. Consumer B is given an initial endowment of 5 units of good X and 3 units of good Y. Consumer A’s utility function is given by: UA(X,Y) = X + 4Y, and consumer B’s utility function is given by UB(X,Y) = MIN (X, 2Y). If the prices...
Price Changes (16 points) The utility function is given by U(x, y) = xy2 . (a)...
Price Changes (16 points) 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...
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,...
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is...
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is I. His utility 18 * and y. Px is the price of x. Py is the price of Is 1. His utility is given by U(x,y) = xy a) Calculate consumer's optim uncompensated demand) s optimal choice of x and y under his budget. hinc b) Derive the indirect utility function. c) Are these two goods normal goods? Why! d) Derive the expenditure function....
3. Consider a two consumer endowment economy. Consumer 1 and consumer 2 come into the economy...
3. Consider a two consumer endowment economy. Consumer 1 and consumer 2 come into the economy with an endowment of good x and good y. They can voluntarily trade their endowments. They have the following utility functions and endowments: u1(x,y) = zły: u2(z, 1) = a* * And they have the following endowments: Consumer 1 e1 = (4,12) Consumer 2 e2 = = (8,6) (a) Set up the utility maximization problem for consumer 2. Then solve for the demand functions...
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,...
A consumer buys two goods, good X and a composite good Y. The utility function is...
A consumer buys two goods, good X and a composite good Y. The utility function is given as U(X, Y) = 2X1/2+Y. The demand function for good X is X = (Py/Px)2. (Edit: The price of X is Px, the price of Y is Py.) Suppose that initially Px=$0.5 and then it falls and becomes Px=$0.2 Calculate the substitution effect, income effect, and the price effect and show the answer graphically.
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is 1. Hi S income is 1. His utility is given by is * and y. Px is the price of x. Py is the price of a) Calculate consumer's optim U(x,y) = xy s optimal choice of x and y under his budget.hu uncompensated demand) b) Derive the indirect utility function. c) Are these two goods normal goods? Why d) Derive the expenditure function....
4. General Equilibrium An economy consists of two consumers, indexed by j = A, B, who consume two goods x, and x2. The first consumer's endowment of the two goods is (W1,W4) = (2,4), and the second consumer's endowment is (w,w) = (5,1), where w/ denotes consumer j's endowment of good i. a. Suppose the preferences of the two consumers are described by the utility functions U,(x) = (x^)(x4)4 and U2(x) = xPx, where x denotes consumer j's consumption of...
Question 2 (20 points) A consumer purchases two goods x ano y. The consumer's income is I. His utility 18 * and y. Px is the price of x. Py is the price of Is 1. His utility is given by U(x,y) = xy a) Calculate consumer's optim uncompensated demand) s optimal choice of x and y under his budget. hinc b) Derive the indirect utility function. c) Are these two goods normal goods? Why! d) Derive the expenditure function....
3. Consider a two consumer endowment economy. Consumer 1 and consumer 2 come into the economy with an endowment of good x and good y. They can voluntarily trade their endowments. They have the following utility functions and endowments: u1(x,y) = zły: u2(z, 1) = a* * And they have the following endowments: Consumer 1 e1 = (4,12) Consumer 2 e2 = = (8,6) (a) Set up the utility maximization problem for consumer 2. Then solve for the demand functions...
Most questions answered within 3 hours.
-
David Corp. sold machinery for $80,000 on December 31, 2018.
This machinery was purchased on January...
asked 43 minutes ago -
Discuss at least five differences between supply chain
partnerships of the past and those that have...
asked 1 hour ago -
"The Ramsey family has total assets of $1,000,000 and total
liabilities of $700,000. Included in their...
asked 2 hours ago -
The following table gives information on the amount of sugar (in
grams) and the calorie count...
asked 4 hours ago -
A car travels at an average speed of 56 mph for 15 hours. What
was the...
asked 4 hours ago -
Exercise on Mirror, Mirror on the Wall/lnitial Self
Evaluation
Write an Initial Self Evaluation paper that...
asked 5 hours ago -
Implementation of policy recommendations is often a
problem. What do you see as the major barriers...
asked 6 hours ago -
23- The consideration needed to support a contract
must:
a. Flow to the promise AND have...
asked 8 hours ago -
1. What is the main causal factor of Border line personality
disorder? Research has also found...
asked 10 hours ago -
The National Institute of Standards and Technology (NIST)
supplies "standard materials" whose physical properties are
supposed...
asked 10 hours ago -
Alpha Centauri A and B are Sun-like stars, and together they
form the binary star Alpha...
asked 10 hours ago -
What is the pH of a 0.200 M solution of sulfurous acid? Given:
Ka1 = 1.70×10–2,...
asked 10 hours ago