Using calculus, show that not all goods can be inferior. (Hint: start with the identity that Y=P₁91 +P292+...+ PN9N-)dq₁dq2dan+...+PN DY+ P2 dydyNote thatdYdyP₁OA. AlthoughOB. BecauseO D. BecausedYO E. BecausedydY55 55 55= 1, at least onedY= 0, at least one must be positive, which means at least one good, good i, is not inferior.dYdYOC. Although = 1, at least one p, can be negative, which means at least one good, good i, is not inferior.da=1, at least onedydycan be negative, which means at least one good, good i, is not inferior.dYdqdydamust be positive, which means at least one good, good i, is not inferior.dy=1, at least one p, must be positive, which means at least one good, good i, is not inferior.dy

Inferior goods are those goods whose demand decreases with an increase in income.Therefore, dqi/dY…

Using calculus, show that not all goods can be inferior. (Hint: start with the identity that Y=P₁91 +P292+...+PN9N-) dq₁ da2 dan +...+PN dy = P1 dy +P2 dy Note that dY dy OA. Although OB. Because OC. Although OD. Because OE. Because ㅎㅎ ㅎ ㅎㅎ ㅎ ㅎㅎㅎ dy dY dY dY dy dy = 1, at least one can be negative, which means at least one good, good i, is not inferior. dy dq₁ dq dY = 0, at least one must be positive, which means at least one good, good i, is not inferior. =1, at least one p, can be negative, which means at least one good, good i, is not inferior. da dy = 1, at least one must be positive, which means at least one good, good i, is not inferior. =1, at least one p, must be positive, which means at least one good, good i, is not inferior.

Using calculus, show that not all goods can be inferior. (Hint: start with the identity that Y=P₁91 +P292+...+PN9N-) dq₁ da2 dan +...+PN dy = P1 dy +P2 dy Note that dY dy OA. Although OB. Because OC. Although OD. Because OE. Because ㅎㅎ ㅎ ㅎㅎ ㅎ ㅎㅎㅎ dy dY dY dY dy dy = 1, at least one can be negative, which means at least one good, good i, is not inferior. dy dq₁ dq dY = 0, at least one must be positive, which means at least one good, good i, is not inferior. =1, at least one p, can be negative, which means at least one good, good i, is not inferior. da dy = 1, at least one must be positive, which means at least one good, good i, is not inferior. =1, at least one p, must be positive, which means at least one good, good i, is not inferior.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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