3. (22 total points) Suppose there are two consumers, A and B, and two goods, X...
Suppose there are two consumers, A and B, and two goods, X, and Y. Consumer A's utility function is given by: Ua(X,Y) = X*Y^3 Consumer B's utility function is given by: Ub (X,Y) = X*Y Marginal Utilities for A: MUx =Y^3 , MUy = 3X*Y^2 Marginal Utilities for B: MUx = Y, MUy = X Initial endowments: Person A has 40 units of good X and 20 units of good Y Person B has 30 units of good x and...
I know that the answer is shown so please show the work 24 total points) Suppose there are two consumers, A and B, and two gods, X and given an initial endowment of 9 units of good X and 14 units of good en a ina ds, X and Y. Consumer A is Y. Consumer B is given an imitia endowment of 7 units of good X and 2 units of good Y. Consumer A's utility function is given by:...
2. Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 2 units of good X and 3 units of good Y. Consumer B is given an initial endowment of 6 units of good X and 5 units of good Y. Consumer A’s utility function is given by: UA(X,Y) = X1/2*Y1/2, And consumer B’s utility function is given by UB(X,Y) = X1/4*Y3/4. Therefore, consumer A’s marginal utilities for...
Please solve with steps! Section 11 General Equilibrium Continued 1. Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A's utility function is given by: UA(X,Y)= X*Y', And consumer B's utility function is given by U (X,Y)= X*Y. Therefore, consumer A's marginal utilities for each good are given by: MUX = Y MUY = 3X*Y2 Also, consumer B's marginal utilities for each good are given by: MUX = Y MUY = X Initial Endowments...
need help w this extra practice problem Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y)= X Y UR(X,Y)= X*Y2 Therefore: • For consumer A: MUX = Y; MUY = X • For consumer B: MUX = Y; MUY = 2XY The initial endowments are: A:X = 200; Y = 46 B:X = 40; Y = 26 a) (20 points) Suppose the price of Y, Py = 1. Calculate the price...
Q: Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = XY3 UB(X,Y) = X*Y Therefore: For consumer A: MUX = Y3; MUY = 3XY2 For consumer B: MUX = Y; MUY = X The initial endowments are: A: X = 16; Y = 28 B: X = 54; Y = 12 a) Suppose the price of Y, PY = 1. Calculate the price of X, PX that will lead to...
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...
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con- sumers, A and B. Let cheese be the numeraire good with price of $1. Consumer A's utility function is UA(x; y) = 2x+y and B's utility function is UB(x; y) = xy. A's initial allocation is 10 units of x and 0 units of y. B's initial allocation is 0 units of x and 30 units of y. (a) Put wine x on the...
Description of the economy: For each of the following problems, consider a 2x2 Exchange Economy with two consumers A and B, and two goods X and Y . The preferences of consumer A can be represented by the utility function uA(xA, yA) = xAyA , where xA is the amount of good A consumed by consumer A, and yA is the amount of good Y consumed by consumer A. The preferences of consumer B can be represented by the utility...
Description of the economy: For each of the following problems, consider a 2x2 Exchange Economy with two consumers A and B, and two goods X and Y . The preferences of consumer A can be represented by the utility function uA(xA, yA) = xAyA , where xA is the amount of good A consumed by consumer A, and yA is the amount of good Y consumed by consumer A. The preferences of consumer B can be represented by the utility...