Suppose we have a market with 200 individuals withpreferences over two goods, x and y.1. Consider that all 200 individuals have the utilityfunction U = x²/3y¹/3 and that each individualhas the same income and is subject to the sameprices. Calculate the market demand for x as afunction of income and prices.2. Find the own price elasticity of demand for goodx. Is the elasticity constant or is it changing atdifferent values of P?3. Suppose now that we know m = 135, P = 3,4. What is the market demand for x?This should be a number.and Py4. Consider now that 100 individuals (type A) havethe utility function U = x²/³y¹/³ and the other100 (type B) have the utility functionU = x¹/3y2/3. Each individual still has the same'yincome and is subject to the same prices.Calculate the market demand for x as a functionof income and prices.5. Suppose now that we know m = 250, P = 5,and Py3. What is the market demand for x?This should be a number.==

Since you have posted multiple subparts, as per Bartleby guidelines, we can solve only the first 3…

Suppose we have a market with 200 individuals with preferences over two goods, x and y. 1. Consider that all 200 individuals have the utility x²/3y¹/3 and that each individual function U has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. 2. Find the own price elasticity of demand for good x. Is the elasticity constant or is it changing at different values of Pr? 3. Suppose now that we know m = 135, P = 3, = 4. What is the market demand for x? This should be a number. and Py 4. Consider now that 100 individuals (type A) have the utility function U = x²/3y¹/3 and the other 100 (type B) have the utility function U = x¹/3y2/3. Each individual still has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. Px = 5, 5. Suppose now that we know m = 250, P₂ and P₁ = 3. What is the market demand for x? This should be a number. =

Suppose we have a market with 200 individuals with preferences over two goods, x and y. 1. Consider that all 200 individuals have the utility x²/3y¹/3 and that each individual function U has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. 2. Find the own price elasticity of demand for good x. Is the elasticity constant or is it changing at different values of Pr? 3. Suppose now that we know m = 135, P = 3, = 4. What is the market demand for x? This should be a number. and Py 4. Consider now that 100 individuals (type A) have the utility function U = x²/3y¹/3 and the other 100 (type B) have the utility function U = x¹/3y2/3. Each individual still has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. Px = 5, 5. Suppose now that we know m = 250, P₂ and P₁ = 3. What is the market demand for x? This should be a number. =

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose we have a market with 200 individuals with
preferences over two goods, x and y.
1. Consider that all 200 individuals have the utility
function U = x²/3y¹/3 and that each individual
has the same income and is subject to the same
prices. Calculate the market demand for x as a
function of income and prices.
2. Find the own price elasticity of demand for good
x. Is the elasticity constant or is it changing at
different values of P?
3. Suppose now that we know m = 135, P = 3,
4. What is the market demand for x?
This should be a number.
and Py
4. Consider now that 100 individuals (type A) have
the utility function U = x²/³y¹/³ and the other
100 (type B) have the utility function
U = x¹/3y2/3. Each individual still has the same
'y
income and is subject to the same prices.
Calculate the market demand for x as a function
of income and prices.
5. Suppose now that we know m = 250, P = 5,
and Py
3. What is the market demand for x?
This should be a number.
=
=

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