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2. The average Swedish household spent its disposable income (i.e., budget) the following categories of goods and services: Category 1. Food and non-alcoholic beverages % 12,0 2. Alcoholic beverages and tobacco 3,5 3. Clothes and shoes 5,1 4. Housing (incl. electricity, gas and heating) 26,1 5. Furniture and other household articles 5,2 6. Health and household care 3,1 7. Transports 13,9 8. Post, tele and other communication 3,1

2. The average Swedish household spent its disposable income (i.e., budget) the following categories of goods and services: Category 1. Food and non-alcoholic beverages % 12,0 2. Alcoholic beverages and tobacco 3,5 3. Clothes and shoes 5,1 4. Housing (incl. electricity, gas and heating) 26,1 5. Furniture and other household articles 5,2 6. Health and household care 3,1 7. Transports 13,9 8. Post, tele and other communication 3,1

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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2. The average Swedish household spent its disposable income (i.e., budget) on the following categories of goods and services: Category 1. Food and non-alcoholic beverages % 12,0 2. Alcoholic beverages and tobacco 3,5 3. Clothes and shoes 5,1 4. Housing (incl. electricity, gas and heating) 26,1 5. Furniture and other household articles 5,2 6. Health and household care 3,1 7. Transports 13,9 8. Post, tele and other communication 3,1 9. Leisure, entertainment and culture 11,7 10. Hotels, cafés and restaurants 5,9 11. Other 10,6 The average disposable income was Y = 200000kr, in 2007 (we assume). It is obvious that each category in the table contains many different goods so it is difficult to define a price for each category. However, we are often mostly interested in how demand changes as prices and/or disposable income changes. We can therefore define the "base-prices" for each category to be equal to 1 for all, and "normalize" the units of each category such that one unit of one good is initially exchanged for one unit of another good. household has a utiliy function of the Cobb- (a) If the average Douglastype, how many of these normalized units will it consume for each category of goods and services?
Transcribed Image Text:2. The average Swedish household spent its disposable income (i.e., budget) on the following categories of goods and services: Category 1. Food and non-alcoholic beverages % 12,0 2. Alcoholic beverages and tobacco 3,5 3. Clothes and shoes 5,1 4. Housing (incl. electricity, gas and heating) 26,1 5. Furniture and other household articles 5,2 6. Health and household care 3,1 7. Transports 13,9 8. Post, tele and other communication 3,1 9. Leisure, entertainment and culture 11,7 10. Hotels, cafés and restaurants 5,9 11. Other 10,6 The average disposable income was Y = 200000kr, in 2007 (we assume). It is obvious that each category in the table contains many different goods so it is difficult to define a price for each category. However, we are often mostly interested in how demand changes as prices and/or disposable income changes. We can therefore define the "base-prices" for each category to be equal to 1 for all, and "normalize" the units of each category such that one unit of one good is initially exchanged for one unit of another good. household has a utiliy function of the Cobb- (a) If the average Douglastype, how many of these normalized units will it consume for each category of goods and services?
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