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The following utility functions are defined over three goods, x, y, and z. Calculate the demand functions for each good, h, for j = x, y, z, as functions of the prices px, P (a) u(x, y, z) = xyz hylPx, Py. Pz, m) 3p. hylPx. Py, Pz, m) 3p. %3D hz(Px. Py. Pz. m) (b) u(x, Y, z) = x + In(y) + In(2) 3 2 m if m > Px hylPx, Py. Pz, m) if m sPx Px Ру if m > hylPxı Pyi Pzi m) %3! if m sPx Px if m > h-(Px. Py. Pz, m) %3D If ms20. E

The following utility functions are defined over three goods, x, y, and z. Calculate the demand functions for each good, h, for j = x, y, z, as functions of the prices px, P (a) u(x, y, z) = xyz hylPx, Py. Pz, m) 3p. hylPx. Py, Pz, m) 3p. %3D hz(Px. Py. Pz. m) (b) u(x, Y, z) = x + In(y) + In(2) 3 2 m if m > Px hylPx, Py. Pz, m) if m sPx Px Ру if m > hylPxı Pyi Pzi m) %3! if m sPx Px if m > h-(Px. Py. Pz, m) %3D If ms20. E

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help me with Question (b), for the two parts I got wrong.

The following utility functions are defined over three goods, x, y, and z. Calculate the demand functions for each good, h, for j = x, y, z, as functions of the prices px, py. Pz and income, m. (a) u(x, y, z) = xyz m hy(Pxı Py. Pz. m) = 3p. m hy(Px, Py. Pz, m) = 3p, h-(Px. Py. Pz, m) = 3p. (b) u(x, y, z) = x + In(y) + In(z) m 2 if m> 흑px hylPx, Py. Pz, m) = if msPx Px Py if m > hy(Pxr Pyr Pz m) = if ms 측px + Px if m > 흑px 2p- hz(Px. Py. Pz, m) = If ms
Transcribed Image Text:The following utility functions are defined over three goods, x, y, and z. Calculate the demand functions for each good, h, for j = x, y, z, as functions of the prices px, py. Pz and income, m. (a) u(x, y, z) = xyz m hy(Pxı Py. Pz. m) = 3p. m hy(Px, Py. Pz, m) = 3p, h-(Px. Py. Pz, m) = 3p. (b) u(x, y, z) = x + In(y) + In(z) m 2 if m> 흑px hylPx, Py. Pz, m) = if msPx Px Py if m > hy(Pxr Pyr Pz m) = if ms 측px + Px if m > 흑px 2p- hz(Px. Py. Pz, m) = If ms
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