Consider the two bundles A and B. Note: each bundle is a pair of values, (c1, c2).Calculate the expenditure for the each of the two bundles. Put your answers in theblue highlighted cells for Q5. Qn 5Bundle A:Bundle B:Units of good 1 (c1)Units of good 2 (c2)Expenditure7.5018.7530.007.50 Table 2: Plot points Qn 1Qn 3(i) Qn 3(ii)IC1Table 1: Parameter tableac1:с2: ВСIC245.0 67.500027 49.96708541.0 52.068347 36.8296050.032.0p15.004.037.0 46.262122 31.97366933.0 42.039522 28.48025229.0 38.636667 25.692125p22.506.0112.58.025.0 35.757673 23.354719Utility level 1 (U1)Utility level 2 (U2)49.2950310.042.4124412.021.0 33.250795 21.33747314.017.0 31.025888 19.562829U=3(2 c1^0.5 + 2 c2^0.5)13.0 29.024217 17.9802539.0 27.204987 16.5546455.0 25.538492 15.260448Utility function:16.0IC1:c2=[(1/2)(16.43168-2c1^0.5)]^218.0IC2:c2=[(1/2)(14.13748-2c1^0.5)]^220.02.

Both the bundle A and B contain the two goods, the good 1 and the good 2. The consumer consumes a…

Answered: Qn 5 Bundle A: Bundle B: Units of good…

Business

Economics

Qn 5 Bundle A: Bundle B: Units of good 1 (c1) Units of good 2 (c2) Expenditure 7.50 18.75 30.00 7.50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Consider the two bundles A and B. Note: each bundle is a pair of values, (c1, c2).
Calculate the expenditure for the each of the two bundles. Put your answers in the
blue highlighted cells for Q5.

Qn 5
Bundle A:
Bundle B:
Units of good 1 (c1)
Units of good 2 (c2)
Expenditure
7.50
18.75
30.00
7.50

Table 2: Plot points Qn 1
Qn 3(i) Qn 3(ii)
IC1
Table 1: Parameter table
a
c1:
с2: ВС
IC2
45.0 67.500027 49.967085
41.0 52.068347 36.829605
0.0
3
2.0
p1
5.00
4.0
37.0 46.262122 31.973669
33.0 42.039522 28.480252
29.0 38.636667 25.692125
p2
2.50
6.0
112.5
8.0
25.0 35.757673 23.354719
Utility level 1 (U1)
Utility level 2 (U2)
49.29503
10.0
42.41244
12.0
21.0 33.250795 21.337473
14.0
17.0 31.025888 19.562829
U=3(2 c1^0.5 + 2 c2^0.5)
13.0 29.024217 17.980253
9.0 27.204987 16.554645
5.0 25.538492 15.260448
Utility function:
16.0
IC1:
c2=[(1/2)(16.43168-2c1^0.5)]^2
18.0
IC2:
c2=[(1/2)(14.13748-2c1^0.5)]^2
20.0
2.

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