typed please3.12 CES utility with weightsa. Show that the CES function46+ото8is homothetic. How does the MRS depend on the ratioy/x?b. Show that your results from part (a) agree with ourdiscussion of the cases 8 = 1 (perfect substitutes) and80 (Cobb-Douglas).=c. Show that the MRS is strictly diminishing for all values of8 < 1.d. Show that if x = y, the MRS for this function dependsonly on the relative sizes of a and B.e. Calculate the MRS for this function when y/x = 0.9and y/x1.1 for the two cases 8 = 0.5 and 8 = -1.What do you conclude about the extent to which theMRS changes in the vicinity of x y? How would youinterpret this geometrically?=

3.12 CES utility with weights a. Show that the CES function x8 a + 8 ото 8 is homothetic. How does the MRS depend on the ratio y/x? b. Show that your results from part (a) agree with our discussion of the cases 8 = 1 (perfect substitutes) and 80 (Cobb-Douglas). 1 c. Show that the MRS is strictly diminishing for all values of 8 < 1.

3.12 CES utility with weights a. Show that the CES function x8 a + 8 ото 8 is homothetic. How does the MRS depend on the ratio y/x? b. Show that your results from part (a) agree with our discussion of the cases 8 = 1 (perfect substitutes) and 80 (Cobb-Douglas). 1 c. Show that the MRS is strictly diminishing for all values of 8 < 1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The utility function of an individual is given by u=f(x,y)=x3/4y1/4 Determine the optimal quantities of the 2 goods if its given that the price of good x is sh. 6 per unit, price of good y is sh. 3 per unit and the income of the individual is 120. Solve using max of utility approach and use langregean approach?
No written by hand solution
12) Answer the question on the basis of the following marginal utility data for products X & Y. Assume the prices of X and Y are $4 and $2, respectively, and that the consumers income is $18. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Suppose we observe that an individual's demand for good 1 is: 1/(2p,+p2) (where I- income). From this we can conclude that: Goods 1 and 2 are perfect complements O The price of good 1 is higher than the price of good 2 Two answers are correct O Goods 1 and 2 are perfect substitutes Three answers are correct No answer is correct Goods 1 and 2 are normal goods O These goods may be perfect substitutes or perfect complements, it depends upon the utility function
1. This question will let you examine/explore a more interesting utility func- tion than the simple example discussed in class as there will be both cross-price elas- ticity and an inferior good. Suppose you are told a consumer has the following utility function: U (9219₂) = 9z+√9z+ 9₂ You should assume income is Y, the price of good r is P2, and the price of good z is P₂. This question will ask about several concepts discussed in lecture. (a) What is the Marshallian demand for goods x and z? I.e. find (qq) for both interior solutions and corner solutions. Note: the outcome is "ugly" for the interior section and both corner should include constraints, i.e. limits using Y relative to f(P, P₂). Hint: if solving using MRS = MRT, can use this information again in part (d). (b) Suppose you are told P₂ = $8 and P₂ = $1. Create a graph showing the Income Consumption Curve (ICC) for Y = {$12.25, $35, $49, $70, $98). Be sure to clearly label the graph. Based on the ICC, which of the goods is…
6 If someone has an income of 20 and he wants to buy Pepsi and hamburgers. Hamburgers are sold in an unusual way. There is only one supplier and the more hamburgers he buys, the higher the price per unit. So, hamburgers cost is a total of 2h^2 (squared) for hamburgers. Pepsi is sold at a price of $2. 1. In this case, write out the budget constraint of hamburgers and Pepsi. 2. His utility function is u(h,p) = 12h + 4p. Draw his 1) budget line and 2) a few indifference curves on a graph. 3. What is the optimal bundle for him?
just do part c and explain it
Could you just do part c and explain.
Given that utility function for a consumer is given by u = (x-3)2 + (y-4)2, draw any twoindifference curves for this consumer while clearly labelling the higher one as ‘H’ and lower oneas ‘L’. Does he prefer more of a good to less of it? Does he prefer averages to extremebundles? Explain.
comsumer consuming two goods x and y has utility function v=x^2+y^3.If the price of the two commodities 6 and 2 respectively and his budget is birr .40 find the quantites x and y which will maximize utility