The maximum value of the function U if x 1 and x 2 are the goods that a customer bought. The customer’s utility is given by the function U ( x 1 , x 2 ) = 2 x 1 x 2 + 3 x 1 . Customers disposal ability is $ 100 . Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $ 6 . The unit cost of first good is $ 1 and unit cost of second good is $ 3 .

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Answer 1

Question

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

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Answer 2

Question

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

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Answer 3

Question

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

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Answer 4

Question

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

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Answer 5

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

Answer 6

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

Answer 7

Chapter 8.6, Problem 27P

To determine

To calculate:

The maximum value of the function U if x1 and x2 are the goods that a customer bought. The customer’s utility is given by the function U(x1,x2)=2x1x2+3x1. Customers disposal ability is $100. Also, estimate the increase in optimal utility if the consumer’s disposal income is increased by $6. The unit cost of first good is $1 and unit cost of second good is $3.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 8.1 - Prob. 1P Ch. 8.1 - Prob. 2P Ch. 8.1 - Prob. 3P Ch. 8.1 - Prob. 4P Ch. 8.1 - Prob. 5P Ch. 8.1 - Prob. 6P Ch. 8.1 - Prob. 7P Ch. 8.1 - Prob. 8P Ch. 8.1 - Prob. 9P Ch. 8.1 - Prob. 10P

Solution Summary: The author calculates the maximum value of the function U if x_1and2 are the goods that a customer bought.

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