D,E **D.** Robert’s utility is given by $ U(x, y) = 5x^2y $, and therefore $ MU_x = 10xy $ and $ MU_y = 5 $. Find his demand for $ x $ and $ y $.**E.** Draw a graph to show that individuals prefer income taxes over quantity taxes when both taxes result in the same revenue to the government.**Graph/Diagram Explanation:**There is no graph or diagram provided in the image. For requirement E, you need to draw a graph that compares the effects of income taxes and quantity taxes. This graph should illustrate how both forms of taxation generate the same revenue for the government, but individuals have a preference for income taxes due to differences in their effective burden on consumers.

Answered: Robert's utility is given by U(x,y)=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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D,E

**D.** Robert’s utility is given by $ U(x, y) = 5x^2y $, and therefore $ MU_x = 10xy $ and $ MU_y = 5 $. Find his demand for $ x $ and $ y $.

**E.** Draw a graph to show that individuals prefer income taxes over quantity taxes when both taxes result in the same revenue to the government.

**Graph/Diagram Explanation:**

There is no graph or diagram provided in the image. For requirement E, you need to draw a graph that compares the effects of income taxes and quantity taxes. This graph should illustrate how both forms of taxation generate the same revenue for the government, but individuals have a preference for income taxes due to differences in their effective burden on consumers.

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Question D:

Given:

Robert's utility function: $U (x, y) = 5 x^{2} y$ ......(1)

Marginal utility of good x: $M U_{x} = 10 x y$

Marginal utility of good y: $y = 5 x^{2}$

We have to find the demand for x and y.

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