Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?
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I need asnwers of a,c,g.
Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1.
a.Please derive the Marshallian demand function of x.
b.Please derive the indirect utility function.
c. Please derive the expenditure function
If originally m = 40, px=2.
d. What is his original highest utility level?
Now px has decreased to 1, m and py do not change.
e. What is his new maximum utility level?
f. Based on (c) (d) and (e), what is his compensating variation?
g.Based on (c) (d) and (e), what is his equivalent variation?
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- I need asnwers of d,e,f. Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?I need asnwers of e,f,g Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?I need asnwers of f,g Assume there is consumer, his utility function is u(x,y) =8 * x0.5+y , and his budget constraint is px*x +y = m, which implies py = 1. a.Please derive the Marshallian demand function of x. b.Please derive the indirect utility function. c. Please derive the expenditure function If originally m = 40, px=2. d. What is his original highest utility level? Now px has decreased to 1, m and py do not change. e. What is his new maximum utility level? f. Based on (c) (d) and (e), what is his compensating variation? g.Based on (c) (d) and (e), what is his equivalent variation?
- given f(x,y) = 9x2 - 2xy + 8y2, and Px= 12, Py= 1 and income, I = 165. Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y. (a) What is the equilibrium value of x? (Give your answer to two decimal places, if required) (b) What is the equilibrium value of y? (Give your answer to two decimal places, if required) (c) What is the value of the determinant of the bordered Hessian matrix? (Give your answer to two decimal places, if required) Question #2 Based on the value of the Bordered Hessian, comment whether the obejective function is maximised or minimised.Given f(x,y) = 2x2 - 5xy + 5y2, and Px= 7, Py= 6 and income, I = 169. Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y. (a) What is the equilibrium value of x? (Give your answer to two decimal places, if required) (b) What is the equilibrium value of y? (Give your answer to two decimal places, if required) (c) What is the value of the determinant of the bordered Hessian matrix? (Give your answer to two decimal places, if required) (d) Based on the value of the Bordered Hessian, comment whether the obejective function is maximised or minimised.Given f(x,y) = 2x2 - 6xy + 9y2, and Px= 7, Py= 5 and income, I = 175. Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y. (a) What is the equilibrium value of x? (Give your answer to two decimal places, if required) (b) What is the equilibrium value of y? (Give your answer to two decimal places, if required) (c) What is the value of the determinant of the bordered Hessian matrix? (Give your answer to two decimal places, if required) unanswered d. Based on the value of the Bordered Hessian, comment whether the objective function is maximized or minimized. Answer in one word.
- 1. Think about a utility function U(x,y) =xy, the budget constraint is px*x +py*y= m. A. Please derive the expenditure function. If originally m = 8, px=1, py=4. Now px has increased to 2. B. Based on (A), after the price change, how much should be compensated to maintain his original utility level? C. Use the Shaphard's Lemma to derive the Hicksian demand functions.Ma1. Please give only typed answer. Assume the following expendiexpenditure function. (a) Interpret this function. In particular, what will happen to the optimal expenditure, if the consumer wanted to maintain a high level of utility? (b) Calculate Hicks demand for good 2. (c) Suppose that p1 = 1, p2 = 1 and that U = 28. Calculate and interpret the variation compensation if the price of good 2 increases by $1.A consumer is maximising her utility function: U(x, y) = (x¹/³+y¹/³)³, subject to the budget constraint x + 3y = 100. (a) Set up the Lagrangian function of this utility maximisation problem and derive the first-order conditions. (b) What are the utility maximizing amounts of x and y? Also, calculate the Lagrange multiplier. (c) What are the utility maximising amounts of x and y if the budget constraint changes to x + 3y = 50? Also, calculate the Lagrange multiplier.
- It is given that the price of goods X and Y are both Rs.10 each, a consumer consumes 10 units of X and 10 units of Y at equilibrium.a. Draw the budget line and indifference curve and show the point of consumer equilibrium. b. If the price of X falls to Rs.5, PY and money income remaining the same, what is the real income increase?c. At the new equilibrium caused by a fall in price of X, the consumer has a combination of 16 units of X and 12 units of Y. Show the price effect of a change in price of X using the PCC.d. Why are more units of Y consumed even though its price has not fallen?Suppose a consumer has a monthly income of m = 100 which she spendson two commodities: french fries (x1) and beef jerky (x2). The price offrench fries is p1 = 2 and the price of beef jerky is p2 = 5. (e) What is the slope of the budget line? Provide an economicinterpretation of this number.(f) Because of Mad Cow Disease, the price of beef jerky increasesto $10 (lower supply of beef). On a new graph, plot the originaland new budget constraint clearly identifying how the budgetconstraint has changed. What is the new relative price of beefjerky in terms of french fries?(g) Because of severe shortages, Congress passes the Jerky ReliefAct which limits each consumer to purchase at most 5 packs ofjerky. Show on a graph how this affects the consumer’s budgetset. Answer all three.I need answers of C,F 1. Think about a utility function U(x,y) =xy, the budget constraint is px*x +py*y= m. a. Please derive the Marshallian demand functions. b. Please derive the indirect utility function. c. Please derive the expenditure function. If originally m = 8, px=1, py=4. d. Now px has increased to 2. f. Based on (c), after the price change, how much should be compensated to maintain his original utility level?