Suppose the preferences of an individual are represented by a quasilinear utility function: U(x, y) = ln(x) + 3y a) Initially, p=1, Py=6 and I=102. Then, the price of x increases to 2 (p=2). Calculate the changes in the demand for r. Please also calculate the substitution and income effects of the change in p, on r. (Hint: since the change in price is not small, you cannot use the Slutsky equation. You need to have numbers instead of functions as the answer.) b) Please also calculate the substitution and income effects of the change in p on y. c) Instead of doubling to 2, suppose pz is only increased by a small amount. Use the Slutsk equation to find the substitution and income effects of the change in the price of r on I Compare your result to (a). Explain why there's no income effect of the change in p, on a Show your result on an indifference curve. d) Use the Slutsky equation to find the substitution and income effect of the change Pa on y. Compare your result to (b).

Q: Suppose a company's revenue function is given by R(q) = -q³ +280q² and its cost function is given by…

A:

Q: S[y] given by y = cosh æ + B sinhx, 0 0,

A:

Q: 2 The consumption function of a certain country is given by 1000VI+ 701 - 0.8 C = where I is the…

A:

Q: Suppose that a price-demand function is given by P(x) = 500- 500 - 15x. Calculate the marginal…

A:

Q: Suppose that the marginal propensity to save is   dS/dy = 0.24     (in billions of dollars) and…

A: Given that :dSdy=0.24 S(0)=$8.5 billion

Q: If the revenue function for a particular commodity is R(p) = −5 q(p) = -56p² + 62p, what is the…

A:

Q: The total cost to produce 100 units of a certain commodity in a certain firm amounts to € 2800.…

A: Since you have posted multiple subpart question, we will solve the first three subparts for you. If…

Q: Suppose that a cost–benefit function is given by f (x) = 50x105 - x, 0 … x … 100, where x is the…

A: Given Data: Cost-benefit function f(x)=50x105-x

Q: linear revenue function is  R = 53x.  (Assume R is measured in dollars.) (a) What is the slope m?…

A:

Q: For a minimum wage job, the total pay ($) received for x hours worked is given by P(x) = 15.74x, for…

A: Total pay ($) received for x hours worked is, P(x)=15.74x, For 0≤x≤80

Q: The demad function for A and B are as follows- **see picture** where qA and qB are the quantities…

A: Given demand function for A and B: qA=10pBpA                       . . . (1) qB=3pApB3…

Optimization

Optimization comes from the same root as "optimal". "Optimal" means the highest. When you do the optimization process, that is when you are "making it best" to maximize everything and to achieve optimal results, a set of parameters is the base for the selection of the best element for a given system.

Integration

Integration means to sum the things. In mathematics, it is the branch of Calculus which is used to find the area under the curve. The operation subtraction is the inverse of addition, division is the inverse of multiplication. In the same way, integration and differentiation are inverse operators. Differential equations give a relation between a function and its derivative.

Application of Integration

In mathematics, the process of integration is used to compute complex area related problems. With the application of integration, solving area related problems, whether they are a curve, or a curve between lines, can be done easily.

Volume

In mathematics, we describe the term volume as a quantity that can express the total space that an object occupies at any point in time. Usually, volumes can only be calculated for 3-dimensional objects. By 3-dimensional or 3D objects, we mean objects that have length, breadth, and height (or depth).

Area

Area refers to the amount of space a figure encloses and the number of square units that cover a shape. It is two-dimensional and is measured in square units.