Imagine that when MattPat gets to Hope there are 27 Hardcore theorist and 9 others (i.e. Everyone else), what is the (inverse) demand curve for t-shirts here? What does the graph look like?2. Suppose you have the following utility function: U(qx, y) = x1/3 2/3x qyis m (instead of specific prices/income given in the example video posted: mp4).a) What is the optimal consumption choice of good x and good y (i.e. q and q)?b) Show that if you double the income and prices that the choice of outcome (i.e. optimal quantity) does not change.c) Suppose there are 20 consumers in the market with the same preferences and income, what is the market demand for good a givenm= $54 and Py = $6?The the price of good x is Pr, the price of good y is Py, and income

Optimal consumption is the point where the ratios of marginal utility to price for the last unit of…

2. Suppose you have the following utility function: U(q, qy) = q³ xq/3. The the price of good x is Pr, the price of good y is Py, and income 1/3 is m (instead of specific prices/income given in the example video posted: mp4). a) What is the optimal consumption choice of good and good y (i.e. q and q)? b) Show that if you double the income and prices that the choice of outcome (i.e. optimal quantity) does not change. c) Suppose there are 20 consumers in the market with the same preferences and income, what is the market demand for good a given m = $54 and Py = $6?

2. Suppose you have the following utility function: U(q, qy) = q³ xq/3. The the price of good x is Pr, the price of good y is Py, and income 1/3 is m (instead of specific prices/income given in the example video posted: mp4). a) What is the optimal consumption choice of good and good y (i.e. q and q)? b) Show that if you double the income and prices that the choice of outcome (i.e. optimal quantity) does not change. c) Suppose there are 20 consumers in the market with the same preferences and income, what is the market demand for good a given m = $54 and Py = $6?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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