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
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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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
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