for the constrained optimisation problem below, find the demand functions and the lagrangian multiplier. interpret the multiplier. max U(x, y)=4x 2+ 3y ² subject to 3x + 4y=100
Q: The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where:…
A: As given Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Also we know that income elasticity is Ey =…
Q: Sales are the function of advertising in The Dawn and Diva Magazine (X, Y). S = XY2 If the price…
A: Given, the sales function: S= XY2 Cost of advertising: PX=5 and PY=10 Advertising budget: M =105…
Q: Suppose the consumer's indirect utility function takes the form is u(p, w) w/(2* (P1 P2)^0.5. Let P1…
A: Given,
Q: What is the expenditure function? ○ E(Pa, Py, U) = Pa 9a (Pa, Py, I) + Pygy (Pa, Py, I) PxGx O$E(Px,…
A:
Q: Q1) Sales are a function of advertising in newspapers and magazines (X, Y).…
A:
Q: What does v mean in this question? Also, could you solve this problem without using Lagrange…
A: Quasi linear utility function are usually linear in one arguement and are non linear in the…
Q: Question No 03. Sales are the function of advertising in The Dawn and Diva Magazine (X, Y). S=XY If…
A: S = XY2 Total cost (C) = 5X + 10Y where X: Dawn and Y: Diva 105 = 5X + 10Y 21 = X + 2Y [diving by…
Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…
A: Answer: Given, Utility function: U=3PC Price of P PP=$1Price of candy PC=$0.5Total income…
Q: Sales are a function of advertising in newspapers and magazines (X, Y).…
A: Sales which is a function of advertising in newspapers and magazines (X, Y) is given as- S = XY2…
Q: The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where:…
A: The price elasticity of demand is an economic statistic that measures the increase in the quantity…
Q: For the utility function U = Qx0.800(1-0.80). and the budget 153 = 11Qx + 12Qy find the CHANGE in…
A: The consumer equilibrium is reached where the indifference curve tangents the budget line. The…
Q: find out the best combination of advertisements in newspapers and magazines by using the Lagrangian…
A: Here the concept of utility maximization is used to find the combination of Diva and Dawn magazines…
Q: The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where:…
A: Given Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A
Q: Denote the consumption of food by x and the consumption of all other goods by y. The demand for food…
A: Given:Qx= 5W/8PxW= 100Px =3Py =5Therefore, Qx= 5*100/8*3 = 20.83
Q: thought that a consumer measures the utility, u(x, y), of possessing a quantity, z, of apples and a…
A: Utility is given as u=xαy1-α Budget Constraint is given as px+qy=M Applying Lagrange multiplier…
Q: You are given the following utility function: ? = ?? The budget is K100 and the price of X is K2…
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Q: Ruby has the following utility function: U(X, Y) = X^3/4 , Y^1/4, where X is her consumption of food…
A: Consumption refers to the utilization or expenditure of goods and services by individuals,…
Q: The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn…
A: Correct : b. It will decrease by 0.5 million kilos.
Q: find out the best combination of advertisement in newspapers and magazines by using Lagrangian…
A: Here the concept of utility maximization is used to find the combination of Diva and Dawn magazines…
Q: The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn…
A: Ans) the correct option is d) Raise the price.
Q: The utility derived by a consumer from the consumption of two commodities is given by the function U…
A: Lagrange Multiplier Method: L = U (A, B) - λ(PA*A + PB*B - M) where, U (A, B) is the utility…
Q: QUESTION 1 For the utility function U = Qx0.65Qy(1-0.65) and the budget 127 = 6Qx + 6Qy find the…
A: The utility function is given as The budget constraint is given as
Q: A consumer’s utility function is given by U = 2x1x2 + 3x₁ where x₁ and x₁ denote the number of items…
A: The function that represents the consumer´s utility is given by: Where; Therefore, applying…
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- Sales are the function of advertising in The Dawn and Diva Magazine (X, Y). S = XY2 If the price of advertising in The Dawn and Diva Magazine is Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales of Dawn and Diva Magazine find out the best combination of advertisement in newspapers and magazines by using Lagrangian multiplier.Sales are the function of advertising in The Dawn and Diva Magazine (X, Y). S = XY2 If the price of advertising in The Dawn and Diva Magazine is Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales of Dawn and Diva Magazine find out the best combination of advertisements in newspapers and magazines by using the Lagrangian multiplier. please provide a complete solution with all the steps including formulas and proper working(b) It is thought that a consumer measures the utility, u(x, y), of possessing a quantity, z, of apples and a quantity, y, of oranges by the formula u(x, y) = rªyla, where a is a constant. Suppose that apples cost p dollars each and oranges q dollars each. If the consumer has M dollars to spend on apples and oranges, use the method of Lagrange multipliers to find the quantity of each that he will buy in terms of a, p, q and M. [You are not required to justify the use of the method of Lagrange multipliers here.] For equally priced apples and oranges when he has one dollar to spend, he is actually observed buying one apple and two oranges. What value of a does this imply?
- Q1) Sales are a function of advertising in newspapers and magazines (X, Y). S = XY2 The price of advertising in newspapers and magazines is Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing sales, find out the best combination of advertisements in newspapers and magazines by using the Lagrangian multiplier. (Hint: Make equation of the budget line with the help of the above information).The vending machine in Katherine's office building offers cans of pop and candies. Katherine's utility function is U = 3PC, where P is the amount of pop consumed per %3D week and C is the amount of candy consumed per week. Pop costs $1 and candy costs $0.5 per bag. If Katherine has $10 to spend, she will consume A bags of candy.The utility derived by a consumer from the consumption of two commodities is given by the function U (A, B) = 0.5In (A) + 0.5 In (B) where A are the number of units of the first commodity consumed and B are the number of units of the second commodity consumed each month. A unit of the first commodity costs $8 and a unit of the second commodity costs $ 4 using the Lagrange multiplier method determine the optimal quantity of each of the commodities consumed each month given that consumer has $32 to spend on both commodities each month
- A consumer's utility function is given by U = 2x1x₂ + 3x₁ where x₁ and x₁ denote the number of items of two goods G1 and G2. The prices of the goods are $1 and $2 respectively. Use Lagrange multipliers to find the maximum value of U if the consumer's income is $83. Estimate the new optimal utility in income rises by $1.In the nonlinear function Y = ax ZC, the parameter c measures Multiple Choice O O O the percent change in X for a 1 percent change in Z. None of these options are correct. the elasticity of Y with respect to Z. ΔΥ/ΔΖ.Suppose that a company wishes to predict sales volume based on the amount of advertising expenditures. The sales manager thinks that sales volume and advertising expenditures are modeled according to the following linear equation. Both sales volume and advertising expenditures are in thousands of dollars. Estimated Sales Volume = 48.06 + 0.53 (Advertising Expenditures) If the company has a target sales volume of $100,000, how much should the sales manager allocate for advertising in the budget? Round your answer to the nearest dollar.
- please solve Q6Question No 03. Sales are the function of advertising in The Dawn and Diva Magazine (X, Y). S=XY? If the price of advertising in The Dawn and Diva Magazine is Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales of Dawn and Diva Magazine find out the best combination of advertisement in newspapers and magazines by using Lagrangian multiplier.Suppose the consumer's indirect utility function takes the form is u(p, w) = w/(2*(P1*P2)^0.5. Let P1 = 4, P2 = 1, w = 80, and let L be the multiplier associated with the budget constraint. Assuming an interior solution, the value of Lis: