If Brian Mulroney's money income increases and the prices of products J and K both increase, then the budget line: Multiple Cholce must shift to the right. will no longer be tangent to an indifference curve. will not change. must shift to the left. may shift elther to the right or the left.
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- Give the economic interpretation of a budget linegiven 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 - 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.
- 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.George has a fixed income and can afford at most 7 units of X if he spends his entire income on X. Alternatively, if he spends all his income on Y, he can afford at most 6 units of Y. Draw George's budget line and an indifference curve such that George chooses to buy 4 pieces of X. Martha has the same income and faces the same prices, yet she chooses to buy 2 pieces of X. In equilibrium, what is George's subjective value of X in terms of Y? What is Martha's? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Steve's utility for socks (q1) and other goods (q2) is given by U(q1,q2) = 10q10.1 0.1q² 0.9 The price of the composite good is p2=1 and the price of a pair of socks is p1=2. Steve's income is Y=100. Every year, Steve's mom buys him 20 pairs of socks. How many dollars is the equivalent variation of the $40 that his mom spends on socks every year?
- Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price ofshelter (S, x-axis) is $100. Which of the following represents his budgetconstraint?If a consumer starts at point A, and then receives an income in current income, this would appear as an outward shift of the budget constraint. is it true or falseIt 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?
- Utility functions of a consumer: U = 20x10.4x20.4 Specify:a. marginal utility of each item.b. If the consumption of x1seee is 80 and x2 as much as 60 units, the price of Px120 and Px2 25, Determine if there is a balance of consumption?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?Q) U = xy and y = x(1+y) Are points (1,9) and (5,1) on the same indifference curve？ Explain it early but not copy paste from Anywhere