No written by hand solutionPlease provide correct solution. Greatly Appreciated! Question 1Consider the budget constrained utility maximisation problem between two goods,Good, and Goody.Let x be the quantity of Good, whose price is $13 per unit andy be the quantity of Good, whose price is $15 per unitThe total budget is $560. (Therefore, the budget constraint is 13x + 15yThe Utility function is given by U(x, y)= x(y + 1)=560).(a) Solve the problem to maximise the utility, constrained by the budget using LagrangeMultipliers.(b) Show that the solution found does actually maximise the utility function (amongstfeasible x and y choices).(c) Calculate the optimal values for x*, y*, λ* and U*(d) Consider now the dual optimisation problem of minimising the cost (Budget, B(x, y))to achieve the utility U* as calculated in (c). Relate the optimal values of this problemto those found in (c) and also B*.

a) Lagrange function:- Maximise Utility subject to Budget constraint L = max U(x, y) s. t. 13x +…

The Utility function is given by U(x, y) = x(y + 1) (a) Solve the problem to maximise the utility, constrained by the budget using Lagrange Multipliers. (b) Show that the solution found does actually maximise the utility function (amongst feasible x and y choices). (c) Calculate the optimal values for x*, y*, λ* and U*

The Utility function is given by U(x, y) = x(y + 1) (a) Solve the problem to maximise the utility, constrained by the budget using Lagrange Multipliers. (b) Show that the solution found does actually maximise the utility function (amongst feasible x and y choices). (c) Calculate the optimal values for x, y, λ* and U*

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.7P

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Suppose you have a budget of $200 to spend on two goods, X and Y. Good X costs $10 and provides a utility of 500 - 2q, where q is the amount consumed. Good Y costs $5 and provides a utility of 500 - 3q. What combination of consumption of these two goods will maximize your overall utility? 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.
I have two utility equations U= x^2 + y^2 U = x + ay Please draw the IC curves for each of them. And also, find the cost function associated with them and detailed steps. P.s The cost function for U= x+ay is u.min((p(x),p(y)/a)), but do not know how to get i
True or False explain 2. A consumer’s budget line is kinked towards the origin (i.e., the kink is pointing towards the origin) if this consumer faces a lower price per unit of x as more x is consumed.
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Zoey has $3 budget in total and can spend her money on cookies (x) and bananas (y).She has preferences over cookies and bananas represented by u(x,y) = x^2y. The first 5 cookies are free for Zoey, but each additional cookie costs $1. Bananas are always $1 each. (a) Draw her feasible budget set, identifying all the intercepts, kinks, etc... (b) What is her optimal bundle? (c) What is her optimal bundle if she only had a $2 budget? (d) Suppose she has $2 budget, but now not only the first 5 cookies are free, but also the first 3 bananas (additional cookies or bananas are $1 each as before). Draw her budget set and calculate her optimal bundle
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