Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 19.A, Problem 2QE
a)
To determine
The most and the least preferable budget constraints of Person Z.
b)
To determine
The marginal rate of substitution of hot dogs for video games.
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3. Tom's utility function is U (x; y) = 3x+4y: His budget constraint is ax + by = 1, a,b,I > 0 a) Derive the
demand function of x. b) Derive the demand function of y. c) Please draw the demand curve for y. d) If the price of x
increases from a to c; what would the value of the Hickis substitution effect of x be?
For Daniel, Pepsi and pizza are complementary products. He consumes a Pepsi with two slices of pizza. Daniel has $30,000 to spend between the two products. Each Pepsi costs $1,000 and a slice of pizza costs $2,000. Based on this information determine:
a) Locate the indifference curves and the budget constraint on a graph. Place the Pepsi on the horizontal axis and the pizza slices on the vertical axis.
b) What is the optimal consumption bundle?
c) What is the consumption decision if Pepsi goes up to $2,000?
d) How does the problem change if Daniel eats a slice of pizza for a Pepsi?
Please solve all parts.
13. Shawn likes to consume pineapple smoothies and hotdogs. His preferences are
represented by the utility function U(x,y) = 34x - x²/2 + y where x is his consumption of
pineapple smoothies and y is his consumption of hotdogs. The price of pineapple
smoothies is $2 and the price of hotdogs is $1. If the price of pineapple smoothies
increases to $6, the change in Shawn's consumer surplus is:
A) -144
B) -128
C) -120
D) -112
E) -90
Chapter 19 Solutions
Microeconomics
Ch. 19.1 - Prob. 1QCh. 19.1 - Prob. 2QCh. 19.1 - Prob. 3QCh. 19.1 - Prob. 4QCh. 19.1 - Prob. 5QCh. 19.1 - Prob. 6QCh. 19.1 - Prob. 7QCh. 19.1 - Prob. 8QCh. 19.1 - Prob. 9QCh. 19.1 - Prob. 10Q
Ch. 19.A - Prob. 1QECh. 19.A - Prob. 2QECh. 19.A - Prob. 3QECh. 19.A - Prob. 4QECh. 19 - Prob. 1QECh. 19 - Prob. 2QECh. 19 - Prob. 3QECh. 19 - Prob. 4QECh. 19 - Prob. 5QECh. 19 - Prob. 6QECh. 19 - Prob. 7QECh. 19 - Prob. 8QECh. 19 - Prob. 9QECh. 19 - Prob. 10QECh. 19 - Prob. 11QECh. 19 - Prob. 12QECh. 19 - Prob. 13QECh. 19 - Prob. 14QECh. 19 - Prob. 15QECh. 19 - Prob. 16QECh. 19 - Prob. 1QAPCh. 19 - Prob. 2QAPCh. 19 - Prob. 3QAPCh. 19 - Prob. 4QAPCh. 19 - Prob. 5QAPCh. 19 - Prob. 1IPCh. 19 - Prob. 2IPCh. 19 - Prob. 3IPCh. 19 - Prob. 4IPCh. 19 - Prob. 5IPCh. 19 - Prob. 6IPCh. 19 - Prob. 7IPCh. 19 - Prob. 8IPCh. 19 - Prob. 9IPCh. 19 - Prob. 10IP
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