Assume the price of good x is 12 dhs per unit, the price of good y is 6 dhs per unit, and the income is 48 dhs 1) Utility maximization: a. Derive the budget line. Draw and explain the budget line b. Maximize utility subject to the budget constraint c. What is the optimal combination of x and y? Which utility level is attained? 2) Indicate the optimal (x,y) bundle together with the relevant indifference curve and the budget constraint, and answer how the latter two and the MRS is related in the optimum 3) Illustrate how your answer in the previous question would be modified if income doubled? Explain. Please can you draw for me the budget line for step 1 also if there are any other drawing required can you also include them? last thing, yesterday i submitted the exact question and it got answered thank you for that but now im trying to find the answer it's gone why is that? thanx
Assume the price of good x is 12 dhs per unit, the price of good y is 6 dhs per unit, and the income is 48 dhs 1) Utility maximization: a. Derive the budget line. Draw and explain the budget line b. Maximize utility subject to the budget constraint c. What is the optimal combination of x and y? Which utility level is attained? 2) Indicate the optimal (x,y) bundle together with the relevant indifference curve and the budget constraint, and answer how the latter two and the MRS is related in the optimum 3) Illustrate how your answer in the previous question would be modified if income doubled? Explain. Please can you draw for me the budget line for step 1 also if there are any other drawing required can you also include them? last thing, yesterday i submitted the exact question and it got answered thank you for that but now im trying to find the answer it's gone why is that? thanx
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
Related questions
Question
not use ai please
Transcribed Image Text:Assume the price of good x is 12 dhs per unit, the price of good y is 6 dhs per unit, and the income is 48 dhs
1) Utility maximization:
a. Derive the budget line. Draw and explain the budget line
b. Maximize utility subject to the budget constraint
c. What is the optimal combination of x and y? Which utility level is attained?
2) Indicate the optimal (x,y) bundle together with the relevant indifference curve and the budget constraint,
and answer how the latter two and the MRS is related in the optimum
3) Illustrate how your answer in the previous question would be modified if income doubled? Explain. Please
can you draw for me the budget line for step 1 also if there are any other drawing required can you also
include them?
last thing, yesterday i submitted the exact question and it got answered thank you for that but now im trying
to find the answer it's gone why is that? thanx
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps with 4 images
Recommended textbooks for you
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning