U=8 (9₁)05. +92. what are his demand functions for the two goods? Let the price of q, be p₁. let the price of q₂2 be p₂, and let income be Y. Philip's demand for q, as a function of p, and p₂ is and his demand for good q₂ is 91-0 9₂2-0 (Property format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg, a subscript can be created with the character)

U=8 (9₁)05. +92. what are his demand functions for the two goods? Let the price of q, be p₁. let the price of q₂2 be p₂, and let income be Y. Philip's demand for q, as a function of p, and p₂ is and his demand for good q₂ is 91-0 9₂2-0 (Property format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg, a subscript can be created with the character)

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 6TY

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If Philip's utility function is U=4 (41) 05+42. 0.5 what are his demand functions for the two goods? Let the price of q, be p,, let the price of q, be p2, and let income be Y. Philip's demand for q, as a function of p, and p, is 91 and his demand for good q, is (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg, a subscript o
Guerdon always puts half a sliced banana, q, , on his bowl of cereal, q, The two 14 goods are perfect complements. What is his utility function? Derive his demand curve for bananas graphically and mathematically. 12- 10- e, Guerdon's utility function (as a function of q, and q2) is 6- VA U= min/2q1.92} 4- O B. U=q, +92- 2- 0+ OC. U=29, + q92- 10 12 14 16 18 20 6 22 Bananas O D. U=0.5q1 + q2- OE. U=q, xq2- 5.00- 4.50- Guerdon's demand function for bananas (as a function of the price of bananas, P1. the price of a bowl of cereal, p2, and income, Y) is 4,00- 3.50- 91 = (p1 + 2p2) (Properly format your expression using the tools in the E 3.00 palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the_ character.) 2.50- * 2.00- P. 1.50- 1.00- 0.50- 0.00+ 10 12 14 Bananas tv 80 DI DD F1 F3 F4 F5 F6 F7 F8 F10 @ %23 $ & 1 3 4 7 Q W E Y U S F H. J く C V M option command command optic ーの * CO Cereal (bowls) p. S per banana B * * N A
10:55 Sun 8 Aug 30% Screenshot_20210808-073803_Office.jpg a) Choose X, and X, to max the utility fxn, UX,X)=chX;+(l-a)hX, st: M = P, X, + P¿X ; a) Consider a price decrease for good 1 from P toP" . Write down the Demand functions for good 1 when prices are P, and when prices drop from R toP" b) Obtain the SE and IE associated with the price change
21:45 Sat 7 Aug 26% O Screenshot_20210807-213016_Office.jpg 21:30 a) Choose X, and X, to max the utility fxn, U(X,X) =ahX;+(l-a)\n X, st: M = P, X 1 + P,X , a) Consider a price decrease for good 1 from P, toP . Write down the Demand functions for good 1 when prices are P, and when prices drop from PtoP b) What is the compensating income, M° associated with the price change? C) Obtain the SE and IE associated with the price change II
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The demand curve is a line that depicts how the quantity demanded of a particular good varies with income a line that depicts the optimal choice of two goods as the price of one good changes (when income and other prices are held constant) a line that depicts how the quantity demanded of a particular good varies with that same good's price. O a line that depicts the optimal choice of two goods at different levels of income at constant prices 2 The blue line in the graph below is an example of.... X₂ X₁ (p₁") x₁(P₁") x₁(P₁') A Demand Curve An Indifference Curve An Engel Curve A price-offer curve An income-offer curve
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