Frank's utility function for WWE wrestling event tickets(x,) and NASCAR race tickets (2) is of the followingCobb - Douglas form: U(x,, ) = x120.25 0.75x2his incomeis Y, the price of WWE tickets is p₁, and the price ofNASCAR tickets is p₂. a. Mathematically derive his1demand functions for x, and x2. No graphs! You arenot required to use Lagrangian Function, you can justuse the demand formulas for the Cobb - Douglas utilityfunction (Chapter 5, fourth slide). b. Using youranswers from part (a), find the demand functions for xand x2, and mathematically prove that they have theproper negative slope.

Given,Frank's CD production function :Then,

Frank's utility function for WWE wrestling event tickets (r,) and NASCAR race tickets (2) is of the following 0.25 0.75 Cobb-Douglas form: U(x,,x₂) = x^^" 2 1 xhis income is Y, the price of WWE tickets is p., and the price of NASCAR tickets is p2.a. Mathematically derive his demand functions for x, and 2. No graphs! You are not required to use Lagrangian Function, you can just use the demand formulas for the Cobb - Douglas utility function (Chapter 5, fourth slide). b. Using your answers from part (a), find the demand functions for x and x,, and mathematically prove that they have the proper negative slope.

Frank's utility function for WWE wrestling event tickets (r,) and NASCAR race tickets (2) is of the following 0.25 0.75 Cobb-Douglas form: U(x,,x₂) = x^^" 2 1 xhis income is Y, the price of WWE tickets is p., and the price of NASCAR tickets is p2.a. Mathematically derive his demand functions for x, and 2. No graphs! You are not required to use Lagrangian Function, you can just use the demand formulas for the Cobb - Douglas utility function (Chapter 5, fourth slide). b. Using your answers from part (a), find the demand functions for x and x,, and mathematically prove that they have the proper negative slope.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.13P

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