Please explain step by step 5-6-For this question, consider that the letter "A" denotes the last 4 digits of yourstudent number. That is, for example, if your student number is: 12345678, thenA = 5678.Suppose that the consumer has a utility function given by U(X,Y) = X0,2 y0,8The prices of goods X and Y are given by px=4 TL and py=2 TL. The totalbudget the consumer has is given by I = A TL.a. Write down the consumer's optimization problem (formally, as we wrote in thelectures).b. Apply the Lagrangian method. Find the necessary condition (NC) for theconsumer's optimization problem. Then find the values of X and Y that maximizeconsumer's utility.C. Illustrate your results by using a graph.d. In the graph you drew for part (c), mark a consumption bundle that is not optimal(i.e. does not satisfy the NC) and discuss why it is not optimal.Consider a consumer with a utility function U(X,Y)= 4√x + √Ya) Evaluate whether marginal utilities of X and Y are diminishing or not.b) Compute marginal rate of substitution (MRS). What is the value of MRSwhen the consumer is consuming 4 units of X and 64 units of Y.c) Provide an interpretation of the value of MRS you found in part (c).d) Evaluate whether this consumer has diminishing marginal rate ofsubstitution or not.

*Since ,question 5 requires value of 'A' to solve for final answer the question is incomplete . We…

6- Consider a consumer with a utility function U(X,Y) = 4√x + √Y a) Evaluate whether marginal utilities of X and Y are diminishing or not. b) Compute marginal rate of substitution (MRS). What is the value of MRS when the consumer is consuming 4 units of X and 64 units of Y. d) c) Provide an interpretation of the value of MRS you found in part (c). Evaluate whether this consumer has diminishing marginal rate of substitution or not

6- Consider a consumer with a utility function U(X,Y) = 4√x + √Y a) Evaluate whether marginal utilities of X and Y are diminishing or not. b) Compute marginal rate of substitution (MRS). What is the value of MRS when the consumer is consuming 4 units of X and 64 units of Y. d) c) Provide an interpretation of the value of MRS you found in part (c). Evaluate whether this consumer has diminishing marginal rate of substitution or not

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Explain Key principles of economics. your answers should not exceed 100 words
Please, can you solve these questions, I tried to solve them but I couldn't do it because it is difficult?.
Identify the steps in a typical scientific study and compare with that involved in economic studies.
Between qualitative and quantitative, which one is the best and more scientific methodology, and why?
Assess the importance of Elinor Ostrom’s work for economists?
What does it mean to think like an economist?
Summerize Wallersteins description of the world economy. What are his key categories and why are they important? Use examples.
What examples do you have of goods or services that are both consumer goods and resources depending upon the context in which those goods are used?
What is the importance of studying economics? Give an example how it can help you.
could you explain step 2 more thoroughly please
What are factors affecting economic analysis?
100 ACTS OF GLOBAL CITIZENSHIP FOR SDGS