Lucy's company has just promoted her to a managerial position and given her a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for her office. Her utility function for carpets (x) and paintings (y) is given by Using Excel's charting tool, draw an indifference curve for U = 4 and another one for U = 6, where both indifference curves contain 1, 2, 4, and 8 carpets on a graph, with carpets on the horizontal axis and paintings on the vertical axis. As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has given her a budget of $7200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each. Using Excel's charting tool, draw Lucy's budget constraint if her budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible quantities. Put carpets on the horizontal axis and paintings on the vertical axis. Combining the information in problem 8.1 and 8.2a, Use Excel to illustrate Lucy's utility-maximizing solution given that her budget is $5,000, the price of a carpet is $1000, and the price of a painting is $500. Problem 8.1As described in Exercise 8.1, Lucy wants carpets and paintingsLucy's company has just promoted her to amanagerial position and given her a new office. Sheis very fond of small Persian carpets and Nativefor here office. Her company has given her a budget of $72000Problem 8.220for this purpose. Persian carpets of the size that she wantsAmerican paintings and wants to get some carpetscan be purchased for $900 each and paintings from a local18and paintings for her office. Her utility function forcarpets (x) and paintings (y) is given by1Native American artist cost $400 each.16214a. Using Excel's charting tool, draw Lucy's budget constraint if12U(x, y) = Vxyher budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible10Using Excel's charting tool, draw an indifferencequantities. Put carpets on the horizontal axis and paintingscurve for U = 4 and another one for U = 6, whereon the vertical axis.38both indifference curves contain 1, 2, 4, and 846carpets on a graph, with carpets on the horizontalPX^x+Py^y=Y4axis and paintings on the vertical axis.7 y=7200-900x/40040ICiIC28351234361.169 xly302182810182544111.15.752084.5821213.515101311.2551456.7515246.8101617181920

An Indifference curve plots the area of the multitude of focuses showing the heaps of two products…

Lucy's company has just promoted her to a managerial position and given her a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for her office. Her utility function for carpets (x) and paintings (y) is given by Using Excel's charting tool, draw an indifference curve for U = 4 and another one for U = 6, where both indifference curves contain 1, 2, 4, and 8 carpets on a graph, with carpets on the horizontal axis and paintings on the vertical axis. As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has given her a budget of $7200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each. Using Excel's charting tool, draw Lucy's budget constraint if her budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible quantities. Put carpets on the horizontal axis and paintings on the vertical axis. Combining the information in problem 8.1 and 8.2a, Use Excel to illustrate Lucy's utility-maximizing solution given that her budget is $5,000, the price of a carpet is $1000, and the price of a painting is $500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Lucy's company has just promoted her to a managerial position and given her a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for her office. Her utility function for carpets (x) and paintings (y) is given by

Using Excel's charting tool, draw an indifference curve for U = 4 and another one for U = 6, where both indifference curves contain 1, 2, 4, and 8 carpets on a graph, with carpets on the horizontal axis and paintings on the vertical axis.

As described in Exercise 8.1, Lucy wants carpets and paintings for here office. Her company has given her a budget of $7200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.

Using Excel's charting tool, draw Lucy's budget constraint if her budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible quantities. Put carpets on the horizontal axis and paintings on the vertical axis.

Combining the information in problem 8.1 and 8.2a, Use Excel to illustrate Lucy's utility-maximizing solution given that her budget is $5,000, the price of a carpet is $1000, and the price of a painting is $500.

Problem 8.1
As described in Exercise 8.1, Lucy wants carpets and paintings
Lucy's company has just promoted her to a
managerial position and given her a new office. She
is very fond of small Persian carpets and Native
for here office. Her company has given her a budget of $72000
Problem 8.2
20
for this purpose. Persian carpets of the size that she wants
American paintings and wants to get some carpets
can be purchased for $900 each and paintings from a local
18
and paintings for her office. Her utility function for
carpets (x) and paintings (y) is given by
1
Native American artist cost $400 each.
16
2
14
a. Using Excel's charting tool, draw Lucy's budget constraint if
12
U(x, y) = Vxy
her budget is $5000. Use 0, 1, 2, 3, and 5 carpets as possible
10
Using Excel's charting tool, draw an indifference
quantities. Put carpets on the horizontal axis and paintings
curve for U = 4 and another one for U = 6, where
on the vertical axis.
3
8
both indifference curves contain 1, 2, 4, and 8
4
6
carpets on a graph, with carpets on the horizontal
PX^x+Py^y=Y
4
axis and paintings on the vertical axis.
7 y=
7200-900x/400
40
ICi
IC2
8
35
1
2
3
4
36
1.
16
9 x
ly
30
2
18
2
8
10
18
25
4
4
11
1.
15.75
20
8
4.5
8
2
12
13.5
15
10
13
11.25
5
14
5
6.75
15
2
4
6.
8
10
16
17
18
19
20

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