Jerry has a total of I dollars per year to spend on apples (x) and Polo-shirts (y). His preferences are represented by the utility function U(x,y) = x¹y. a. Write down Jerry's marginal utility of apples and Polo-shirts. b. What are Jerry's demand functions x*(Px, Py, I) and y*(Px, Py, I)? c. What is Jerry's optimal yearly consumption of apples and Polo-shirts if I = $1200, Px = $4, and Py = $24? Sketch an indifference curve-budget line diagram and show the optimal bundle graphically.

Jerry has a total of I dollars per year to spend on apples (x) and Polo-shirts (y). His preferences are represented by the utility function U(x,y) = x¹y. a. Write down Jerry's marginal utility of apples and Polo-shirts. b. What are Jerry's demand functions x(Px, Py, I) and y(Px, Py, I)? c. What is Jerry's optimal yearly consumption of apples and Polo-shirts if I = $1200, Px = $4, and Py = $24? Sketch an indifference curve-budget line diagram and show the optimal bundle graphically.

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter3: Functions

Section3.3: More On Functions; Piecewise-defined Functions

Problem 99E: Determine if the statemment is true or false. If the statement is false, then correct it and make it...

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