Questions 1.4 and 1.5 refer to a consumer with preferences over food (x) and clothing (y) represented by the utility function u(x, y) = xy, and whose monetary income in 2018 was I = 2. In 2018 prices were (p2018, p2018) (1, 1), and in 2019 they are (p2019, p2019) = (4,1). hand written plz 1.4. The true consumer price index of this individual is 01 ☐ 1.5 风 2 ☐2.5. 1 1.5. The consumer price index of this individual calculated as a Laspeyres index is 01 1.5 2 ☑ 2.5.

Questions 1.4 and 1.5 refer to a consumer with preferences over food (x) and clothing (y) represented by the utility function u(x, y) = xy, and whose monetary income in 2018 was I = 2. In 2018 prices were (p2018, p2018) (1, 1), and in 2019 they are (p2019, p2019) = (4,1). hand written plz 1.4. The true consumer price index of this individual is 01 ☐ 1.5 风 2 ☐2.5. 1 1.5. The consumer price index of this individual calculated as a Laspeyres index is 01 1.5 2 ☑ 2.5.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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