1. Calculate the expenditure's share on good one S1 and good two S2. (Reproduce table and fill in values for S1 and S2) ii. Assume that the individual has carried out optimal purchases of goods 1 and 2 and preferences are Cobb Douglas in nature. Estimate the utility function that is depicted by the expenditure pattern observed in the table. iii. calculate the utility associated with the consumption of goods one and two for the listed years. (fill in the values in the same table you reproduce in (i)). iv. Which year does the individual enjoy the highest utility in (iii).

1. Calculate the expenditure's share on good one S1 and good two S2. (Reproduce table and fill in values for S1 and S2) ii. Assume that the individual has carried out optimal purchases of goods 1 and 2 and preferences are Cobb Douglas in nature. Estimate the utility function that is depicted by the expenditure pattern observed in the table. iii. calculate the utility associated with the consumption of goods one and two for the listed years. (fill in the values in the same table you reproduce in (i)). iv. Which year does the individual enjoy the highest utility in (iii).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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