Suppose Marcel's preferences over consumption bundles (X, Y) can be represented by the utility function U(X, Y) = X³Y. Which of the following expressions gives Marcel's Marshallian demand? (a) (X*, Y*) = (b) (X*,Y*) = (c) (X*,Y*) = (1/₂0) PX (d) (X*, Y*) = = 31 I 3px+py' 3px+py = (e) (X*,Y*) = Ipy Ipx PX (Px+py)' py (Py+PX) 3 I (¹¹) 4 px py I 31 px+4py' 4px+py

Suppose Marcel's preferences over consumption bundles (X, Y) can be represented by the utility function U(X, Y) = X³Y. Which of the following expressions gives Marcel's Marshallian demand? (a) (X, Y) = (b) (X,Y) = (c) (X,Y) = (1/₂0) PX (d) (X, Y) = = 31 I 3px+py' 3px+py = (e) (X,Y) = Ipy Ipx PX (Px+py)' py (Py+PX) 3 I (¹¹) 4 px py I 31 px+4py' 4px+py

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

Suppose Marcel's preferences over consumption bundles (X, Y) can be represented by
the utility function U(X, Y) = X³Y. Which of the following expressions gives Marcel's
Marshallian demand?
(a) (X*,Y*) = (
31
3px+py'
(b) (X*,Y*) = (px (PX+py))
(d) (X*,Y*) :
=
3px' +py)
3px+py
(c) (X*,Y*) = (-1,0)
Ipx
px (px+py)' py (py+PX)
1 I
3 I
4px' 4 py
(e) (X*,Y*) = = ( px + 4py ² :
31
px +4py' 4px+py

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