6. Perloff: Ch. 4, Exercise 1.4 (Demand for gasoline and bread). (the out-of-places belo are supposed to be a symbols representing partial derivatives.) 1.4 David consumes two things: gasoline (G) and bread (B). David's utility function is U(91, 92) = 10 q.25q2.75. a. Derive David's demand curve for gasoline. b. If the price of gasoline rises, how much does David reduce his consumption of gasoline, Oq₁/0p₁? c. For David, how does 0q1/0p₁ depend on his income? That is, how does David's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? To answer these questions, find the cross-partial derivative, 02q₁/(Op10Y). M I
6. Perloff: Ch. 4, Exercise 1.4 (Demand for gasoline and bread). (the out-of-places belo are supposed to be a symbols representing partial derivatives.) 1.4 David consumes two things: gasoline (G) and bread (B). David's utility function is U(91, 92) = 10 q.25q2.75. a. Derive David's demand curve for gasoline. b. If the price of gasoline rises, how much does David reduce his consumption of gasoline, Oq₁/0p₁? c. For David, how does 0q1/0p₁ depend on his income? That is, how does David's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? To answer these questions, find the cross-partial derivative, 02q₁/(Op10Y). M I
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hi please 6 only please. Thankyou
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b Week One - Google...
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learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com
Bb Lefebvre 1974-1991 - The Prod...
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a T
For "perfect substitute" preferences, MRS = MRT even outside of equilibrium.
6. Perloff: Ch. 4, Exercise 1.4 (Demand for gasoline and bread). (the out-of-place "0"s below
are supposed to be a symbols representing partial derivatives.)
1.4 David consumes two things: gasoline (G) and bread (B). David's utility
function is U (91, 92) = 10 q.25 0.75
a. Derive David's demand curve for gasoline.
b. If the price of gasoline rises, how much does David reduce his
consumption of gasoline, 0q₁/0p₁?
c. For David, how does 091/0p₁ depend on his income? That is, how does
David's change in gasoline consumption due to an increase in the price of
gasoline depend on his income level? To answer these questions, find the
cross-partial derivative, 02q₁/(0p₁0Y). M
JAN
24
7. James has utility function U(q₁, 92)=√√9₁ +92 and income Y = 50. The price of Good 1
is 5 and the price of Good 2 is 10.
a. What kind of preferences does James have?
tv w
X
B https://learn-us-east-1-prod-fle...
I
zoom
DQ
]
C
O
Tu](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30841e31-469e-444c-92f7-f4f3d21a3fe0%2F2054cadd-4f43-430a-b79d-af1f6aa14042%2Fsih5gtc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:File
Edit View
b Week One - Google...
Lr
History
C.
BER
BLE
Bookmarks
Window
Develop
Help
learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com
Bb Lefebvre 1974-1991 - The Prod...
(((
Bb Content - 20231_econ_303_26...
Bb https://learn-us-east-1-prod-fle...
Proforma - Google Drive
a T
For "perfect substitute" preferences, MRS = MRT even outside of equilibrium.
6. Perloff: Ch. 4, Exercise 1.4 (Demand for gasoline and bread). (the out-of-place "0"s below
are supposed to be a symbols representing partial derivatives.)
1.4 David consumes two things: gasoline (G) and bread (B). David's utility
function is U (91, 92) = 10 q.25 0.75
a. Derive David's demand curve for gasoline.
b. If the price of gasoline rises, how much does David reduce his
consumption of gasoline, 0q₁/0p₁?
c. For David, how does 091/0p₁ depend on his income? That is, how does
David's change in gasoline consumption due to an increase in the price of
gasoline depend on his income level? To answer these questions, find the
cross-partial derivative, 02q₁/(0p₁0Y). M
JAN
24
7. James has utility function U(q₁, 92)=√√9₁ +92 and income Y = 50. The price of Good 1
is 5 and the price of Good 2 is 10.
a. What kind of preferences does James have?
tv w
X
B https://learn-us-east-1-prod-fle...
I
zoom
DQ
]
C
O
Tu
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