Can you please help awnser 8 d I have attached awnser to 8 a to make it easier to understand and complete. Thank you 10.In a 2 good (8, and x) model, the consumer's utility is given by:U= +where U is utility. P, is the price of good 1. p, is the price of good 2 and m isincome.Find the hicksian (compensated) demand functions, x, - x, (U.p.) for eachgood by minimising the expenditure required to attain a given level of utility.Assume the second order conditions hold.(a)1-pX, +P,X, + 2U -x - x)1.-2.--01, -U ---0Dividing first equation by the second gets:Now substitute this into the third equation:P +Px -U*pi + pSimilarly for the other one to get: x -U 8.In a 2-good model, where the goods are denoted x, and x2, the consumer's utility1 1function is as follows: U =Money income available is denoted m. All of this income is spent on the two goods.The prices of the two goods are P1 and p2 respectively.(a)By minimising expenditure, subject to the utility function, find the compensated(Hicksian) demand functions; that is, demand for each good expressed in terms of U,P1 and P2. Do not check the second order conditions.(b)Substitute these conditional demand functions back into the objective function to findthe expenditure function; that is, m in terms of U, P, and p2.(c)Show that the derivative of the expenditure function with respect to P1 is theconditional demand function for x1-(d)Now maximise utility subject to the budget constraint and thus find the ordinary(Marshallian) demand functions; that is, demand for each good expressed in terms ofm, Pi and P2. Do not check the second order conditions.(e)Substitute the demand functions in (d) into the utility function and re-arrange the termso that the dependant variable is m.

We are going to find the Marshallian demand function to answer the part d) of this question.

8. In a 2-good model, where the goods are denoted X1 and x2, the consumer's utility 1 1 function is as follows: U = x²x². Money income available is denoted m. All of this income is spent on the two goods. The prices of the two goods are p1 and p2 respectively. By minimising expenditure, subject to the utility function, find the compensated (Hicksian) demand functions; that is, demand for each good expressed in terms of U, (a) P1 and P2. Do not check the second order conditions. (b) Substitute these conditional demand functions back into the objective function to find the expenditure function; that is, m in terms of U, P1 and P2. (c) Show that the derivative of the expenditure function with respect to p1 is the conditional demand function for xX1. Now maximise utility subject to the budget constraint and thus find the ordinary (Marshallian) demand functions; that is, demand for each good expressed in terms of m, P1 and P2. Do not check the second order conditions. (d) (e) Substitute the demand functions in (d) into the utility function and re-arrange the term so that the dependant variable is m.

8. In a 2-good model, where the goods are denoted X1 and x2, the consumer's utility 1 1 function is as follows: U = x²x². Money income available is denoted m. All of this income is spent on the two goods. The prices of the two goods are p1 and p2 respectively. By minimising expenditure, subject to the utility function, find the compensated (Hicksian) demand functions; that is, demand for each good expressed in terms of U, (a) P1 and P2. Do not check the second order conditions. (b) Substitute these conditional demand functions back into the objective function to find the expenditure function; that is, m in terms of U, P1 and P2. (c) Show that the derivative of the expenditure function with respect to p1 is the conditional demand function for xX1. Now maximise utility subject to the budget constraint and thus find the ordinary (Marshallian) demand functions; that is, demand for each good expressed in terms of m, P1 and P2. Do not check the second order conditions. (d) (e) Substitute the demand functions in (d) into the utility function and re-arrange the term so that the dependant variable is m.

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

Can you please explain the proper difference between the fixed and flex ex rates and which should be better?
How much can Sheila borrow on a credit card charging an APR of 17% over a period of 5 years if she wants to keep her payments to not exceed $300 every month end, if the credit card company compounds money on a daily basis?
The future value of 1000 Rand for 8% interest rate over 6 years is a certain value. At what interest rate will you get the same future value when you change the period to 3 years for the same 1000 Rand? Hint use goal seek
How can the engineers handle unequal Service Life Problemsin Replacement?
Ed opened a savings account 5 years ago with $600. The account earns 3% simple interest per year, and Ed has not added or withdrawn from the account. How much interest has Ed earned?
What is the actual value on the Mec?
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each What would be the profit(loss) be if 1000 unit were sold in month?
Adam leases a truck with an upfront payment 3100 and monthly payments of 116. Assuming there is no additional charges , what I will be the total cost of a 3 year lease?
So what really happens if we don't raise the debit limit? Hmmmm? Good question we have never not done that before... Verbatum question formulated by Eric Kortenhoven. Comment on the question then reply to a fellow student this will be an extra credit and points can be used wherever you would like just let me know where to apply them
Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.
Subject: Engineering Economics Topic: Uniform Gradient An employee deposits $300 into an account paying 6% per year and increases the deposits by $100 per year for 4 more years. How much is in the account immediately after the 5th deposit?
2