please teach explain step by step, Question!: / XP₂((1-x²) P₁_V[p₁w) = α²² (1-α) ¹-a wPia PiaWhat is the highest lump sum tax that would be equivalent to princreasing to pi in terms of utility?1-AAnswer: u(x₁, x₂) = x₁²x²₂²²* based on the info given. this can be checked.via marshallian demands:29 (p, w) = =&wPitwo ways to answer:a) find EV using Hicksian.EV =CP²U²u = h₁ lp₁u) b₂[p₁u) = ((1-2) pijanаргP₂-(1-α) ²a pl1-α"hilp, P₂, vtp², wt) dpdp,u²=dwEV = αª (1-α)1=a Wa-pa piaAªpaw] [dt_sa=PºP₁'P₁IndEV=W² [²²][²] = [X][4]Jp²I][[- AWpa2Klik d2₂ (p₁w) = (1-x²) WP₂(1-α) imaX²²-(1-α)IndpaαX"P₁²αP₁pa-piapa-1 dp,w p²-P₁PrPia=W) 1- PP₁₁=игра11a-7-pia

In economics, equivalent variation stands for a mechanism of adjustment where a consumer's income is…

Question!: (xxpo Ji-x, _V[p,w] = α²² (1-a)1-a w Pia ina What is the highest lump sum tax that would be equivalent to pr increasing to pi in terms of utility? I-K Answer: u(x₁, x₂) = x₁²x²₂²-* based on the info given. this can be checked. via marshallian demands: 24 (p, w) = `n =h₂ (p₁u) b₂ [p,u) = ((1-2)). Ja n арг U² two ways to answer: a) find EV using Hickstan. EV = Pr 1-a =dw 26₂ (p₁w) = (1-x²) W P₁ P₂ f³h₁lp, pz, vtp², wi) dp P₁ vi-al-a dp, u² -(1-α) ²^ pl of EV = αª (1-α)²=a w -pa pix pa | A9- =dw x Pº EV = U² | ²² ²² ₁²² H (1-α) i-a w][* **] P₁ Xux (1-d)i-a -AW Ind PR £₂ _(1-α) i-a P₁² "][ P₁² - PUR- α α гда-ра [ P₁ pa-1 dp, il-a I-d = U² α²-α -(1-α) i-a ][暖一般] W [ pa - pra Pia Pr = W| 1-P₁² P₁^ of Pa ya 1 -7

Question!: (xxpo Ji-x, _V[p,w] = α²² (1-a)1-a w Pia ina What is the highest lump sum tax that would be equivalent to pr increasing to pi in terms of utility? I-K Answer: u(x₁, x₂) = x₁²x²₂²-* based on the info given. this can be checked. via marshallian demands: 24 (p, w) = `n =h₂ (p₁u) b₂ [p,u) = ((1-2)). Ja n арг U² two ways to answer: a) find EV using Hickstan. EV = Pr 1-a =dw 26₂ (p₁w) = (1-x²) W P₁ P₂ f³h₁lp, pz, vtp², wi) dp P₁ vi-al-a dp, u² -(1-α) ²^ pl of EV = αª (1-α)²=a w -pa pix pa | A9- =dw x Pº EV = U² | ²² ²² ₁²² H (1-α) i-a w][* **] P₁ Xux (1-d)i-a -AW Ind PR £₂ _(1-α) i-a P₁² "][ P₁² - PUR- α α гда-ра [ P₁ pa-1 dp, il-a I-d = U² α²-α -(1-α) i-a ][暖一般] W [ pa - pra Pia Pr = W| 1-P₁² P₁^ of Pa ya 1 -7

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 6RQ: Would you expect total utility to rise or fall with additional consumption of a good? Why?

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This is the question on my price theory economics homework. I reworked the equations so that P (vertical y axis) was on the left of the equation and Q the x-axis. I, however, cant seem to figure it out. I tried submitting this question earlier, but it wasnt able to be answered. I added the multiple choice options. I reworked Q=1/2P to P=2Q P(with $5 tax)= 2Q+5 I reworked Q=20-2P to P=10-1/2Q Let supply be Q=1/2 P and Demand be Q=20-2P. If a Tax of $5 is imposed the DWL=......., the total tax collected is .........of which the burden of the tax on the consumer = ........... a. 2, 10, 5 b. 5, 10, 2 c. 10, 2, 5 d. None of the above
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Explain (d) step by step Dont
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ADDED DISCUSSION WITH QUESTIONS TOPIC: MARGINAL UTILITY 5 6 7 No. of Pieces Total Utility (Q) 1 2 3 4 (TU) 150 225 250 220 8 9 10 11 Marginal Utility is calculated using the formula given below 12 Marginal Utility (TU-TU)/(Q-Q) 13 14 D For 1 Piece For 2 Piece For 3d Piece (86-0)/(A6-0) -(87-86)/(A7-A6) 150 75 (88-87)/(AS-A7) 25 Marginal 15 Utility Formula 16 Marginal Utility 17 For 1st Piece of the Cake Marginal Utility1 = (150-0)/(1-0) Marginal Utility1 = 150 For 4th Piece (89-88)/(AS-AS) -30 For 2nd Piece of the Cake Marginal Utility2=(225-150)/(2-1) Marginal Utility2 = 75 For 3rd Piece of the Cake Marginal Utility3 = (250-225)/(3-2) Marginal Utility3 = 25 For 4th Piece of the Cake Marginal Utility4 = (220-250) / (4-3) Marginal Utility4 = -30 Therefore, here we can see how the marginal utility of a piece of cake declines after the consumption of the previous one. Here, the highest utility is reached at the consumption of the 3rd piece, beyond whichthe total declined. This is a…
1. This question will let you examine/explore a more interesting utility func- tion than the simple example discussed in class as there will be both cross-price elas- ticity and an inferior good. Suppose you are told a consumer has the following utility function: U ( 921 9₂) = 9x+√9z+ 9z You should assume income is Y, the price of good r is P2, and the price of good z is P₂. This question will ask about several concepts discussed in lecture. (a) What is the Marshallian demand for goods x and z? L.e. find (qq) for both interior solutions and corner solutions. Note: the outcome is "ugly" for the interior section and both corner should include constraints, i.e. limits using Y relative to f (P, P₂). Hint: if solving using MRS = MRT, can use this information again in part (d).
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