Elly has a utility function u(x; y) = 3ln(x) + In(y). She produces (wz;Wy) (5,5). The price of y is 1, and let på = p. a) Find Elly's gross demand functions for goods r and y. b) At p = 5, is Elly a net demander or supplier of good x? What is her net demand or net supply of good x at this price? c) If p rises from 5 to 5.41924, is Elly better off or worse off? Explain. d) At what price is Elly neither a net demander, nor a net supplier of good x?

Elly has a utility function u(x; y) = 3ln(x) + In(y). She produces (wz;Wy) (5,5). The price of y is 1, and let på = p. a) Find Elly's gross demand functions for goods r and y. b) At p = 5, is Elly a net demander or supplier of good x? What is her net demand or net supply of good x at this price? c) If p rises from 5 to 5.41924, is Elly better off or worse off? Explain. d) At what price is Elly neither a net demander, nor a net supplier of good x?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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