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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9da6f334-2e26-4347-847a-2137310320fc%2Fd4c71497-bdbe-4133-9d10-04a281f9880d%2Fj6c3lxh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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.
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