Question 4 A consumer is maximising her utility function: U(x, y) = (æ0.5 + y05)°, subject to the budget constraint 4x + 2y : 108. (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 + 2y = 36? How would ) change? Explain your reasoning. (Hint: You do not need to calculate A, rather comment on how it would change and why.)

Question 4 A consumer is maximising her utility function: U(x, y) = (æ0.5 + y05)°, subject to the budget constraint 4x + 2y : 108. (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 + 2y = 36? How would ) change? Explain your reasoning. (Hint: You do not need to calculate A, rather comment on how it would change and why.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 3. What can you say about the relationship between cement and asphalt? Why? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
Garret bought a leather football that cost $22. He then bought 10 more footballs for his friends. How much money did he spend for all 11 footballs? Show work by using slope-intercept form?
The price of a car you want is $37,000 today. Its price is expected to increase by $1000 each year. You now have $24,500 in an investment account, which is earning 9% per year. How many years will it be before you have enough to buy the car without borrowing any money? (Use Goal Seek to determine the time taken.) The time taken is determined to be years.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 7. If the price of asphalt (PR) decreases by 15, what will happen to the estimated quantity of cement demanded? Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 4. At the 5% level of significance, which variables are statistically significant?
Eng. Economic Q1. Would a dollar tomorrow be worth more to you today when interested is 20% or 10%?
A company estimated that the relationship between the unit price and demand per month for a potential new product is approximated by P = $ 100 – $ 0.1D. The company can produce the product by increasing fixed costs $ 17,500 per month, and the estimated variable costs is $ 40 per unit. What is the optimal demand, D*, and based on this demand, should the company produce new product? Why? a) Work out the complete solution by differential calculus, starting with formula for profit or loss per month b) Solve graphically for an approximate answer
How do you solve a problem similar to this? I’m confused on how to solve to find the quantity when you have the other variables. (Q1-15)-Q1/ ((Q1-15)+Q1)/2 = -30.30
An electronics retailer wants to send codes for $10 off a pair of headphones to the subscribers of its e-mail list. The coupon code will have two letters followed by three digits. The letters A , B , C , and D and the digits 6 and 9 will not be used. So, there are 22 letters and 8 digits that will be used. Assume that the letters and digits can be repeated. How many such coupon codes can be generated? couponcodes
plz solve the question's with explaination within 30-40 min. I will give you upvotes
(10+05)The following data were collected on the height (inches) and weight (pounds) of women swimmers.Height6870646566 Weight132110106115128 d. Suppose the value of co-efficient of determination is estimated to be equals 0.85, what does this value explains?
Answer relevant with diagram