EBK MACROECONOMICS
EBK MACROECONOMICS
12th Edition
ISBN: 9780100663305
Author: PARKIN
Publisher: YUZU
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Chapter 3, Problem 27APA

(a)

To determine

Price of bananas if TR4 spreads to Region CA.

(b)

To determine

Changes in the demand, supply, and price in the market of bananas in Region CA.

(c)

To determine

Compliments of banana and changes in the demand, supply, and price in the market of bananas in Region CA.

(d)

To determine

The price of banana and price of oil in 2008.

(e)

To determine

Why the expectation of the future arrival of TR4 in Country A has little or no effect on today’s price of bananas.

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Problema 4 (20 puntos): Supongamos que tenemos un ingreso de $120 y enfrentamos los precios P₁ =6 y P₂ =4. Nuestra función de utilidad es: U(x1, x2) = x0.4x0.6 a) Planteen el problema de optimización y obtengan las condiciones de primer orden. b) Encuentren el consumo óptimo de x1 y x2. c) ¿Cómo cambiará nuestra elección óptima si el ingreso aumenta a $180?
Please draw the graph for number 4 and 5, I appreciate it!!
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