please only do: if you can teach explain steps of how to solve each part use lengrange u(T1, T2, T3) = √√√1₂-2-³.As usual, goods 1 and 2 are perfectly divisible, meaning that ₁ and 2 can take on anynonnegative real values and need not be integers. Good 3 is indivisible and unique, meaningthat 23 must be either 0 or 1 (for example, good 3 could be an original painting).(a) Show that this consumer's preferences are monotone.Solution: The derivatives du/oxy and du/dr2 are positive for x1, x2 > 0. Increasing13 from 0 to 1 increases utility by 1/2. Therefore, if the quantity of all three goodsincreases, utility (strictly) increases.(b) Find this consumer's Marshallian demand.Solution: If x3 = 0, the optimal choice isIf x3 = 1, the optimal choice iswhich simplifies toW(31,82,83) = (201₁, 2012, 0).Therefore,x(p, w):Note that if p3>w, we must have x3 = 0. Otherwise, the optimal choice of x3 is 0 ifw-P3 w - P32p1 2p2(F1, F2, F3) = (²W W2p12p212w-P3 w-P3,2p1 2p2P3 ≥ √P1P2.w-Pa2p1 2pz²,₁1).(2P12P2,0)1) if p3 ≤ w and p3 ≤ √P1P2,if P3 w or P3 ≥ √P1P2

As usual, goods 1 and 2 are perfectly divisible, meaning that ₁ and 22 can take on any nonnegative real values and need not be integers. Good 3 is indivisible and unique, meaning that 23 must be either 0 or 1 (for example, good 3 could be an original painting). (a) Show that this consumer's preferences are monotone. Solution: The derivatives du/day and du/da2 are positive for x1, x2 > 0. Increasing 23 from 0 to 1 increases utility by 1/2. Therefore, if the quantity of all three goods increases, utility (strictly) increases. (b) Find this consumer's Marshallian demand. Solution: If x3 = 0, the optimal choice is (#₁, #2,83) = (25₁, 252,0). If x3 = 1, the optimal choice is (#1, #2, #3) = W 2p1 1 w - P3 2p2

As usual, goods 1 and 2 are perfectly divisible, meaning that ₁ and 22 can take on any nonnegative real values and need not be integers. Good 3 is indivisible and unique, meaning that 23 must be either 0 or 1 (for example, good 3 could be an original painting). (a) Show that this consumer's preferences are monotone. Solution: The derivatives du/day and du/da2 are positive for x1, x2 > 0. Increasing 23 from 0 to 1 increases utility by 1/2. Therefore, if the quantity of all three goods increases, utility (strictly) increases. (b) Find this consumer's Marshallian demand. Solution: If x3 = 0, the optimal choice is (#₁, #2,83) = (25₁, 252,0). If x3 = 1, the optimal choice is (#1, #2, #3) = W 2p1 1 w - P3 2p2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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M Inbox - vardeepk2005@gmail. x O myAbbyVirtual Creative and Critical Thinking: G canada to india money conver X A Assignment Help | Do My Assi x + A s3.abbyvirtual.com/mod/book/view.php?id=34147&chapterid=31575 Guest : Recent Resources - Vardeep Kaur ASSIGNMENT 2: Making Inferences SECTIONS Writers use inference in their text to make their writing more interesting. It's not necessary to tell the reader every detail. Good readers make inferences, or conclusions, as they read. It's an important skill for understanding text, as authors often imply themes and ideas, without stating Table of contents 1 them outright. Instead, writers let readers draw their own conclusions about what is happening. Introduction 2 However, it's very important to be able to tell the different between fact and opinion. It is especially difficult to do this on social media. If we Summary Explanation of Assignments are looking at the history of social media, we also have to look at how social media has grown to…
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