14.3 (0) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x - x²2 2 +y. (a) What kind of utility function does Quasimodo have? (b) What is his inverse demand curve for earplugs?. (c) If the price of earplugs is $50, how many earplugs will he consume? (d) If the price of earplugs is $80, how many earplugs will he consume? (e) Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50?.

14.3 (0) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x - x²2 2 +y. (a) What kind of utility function does Quasimodo have? (b) What is his inverse demand curve for earplugs?. (c) If the price of earplugs is $50, how many earplugs will he consume? (d) If the price of earplugs is $80, how many earplugs will he consume? (e) Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50?.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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