Suppose we have a market with 200 individuals withpreferences over two goods, and y.3. Suppose now that we know m = 135, P = 3,4. What is the market demand for x?and PyThis should be a number.4. Consider now that 100 individuals (type A) havethe utility function U = x²/³y¹/³ and the other100 (type B) have the utility functionU = x¹/3y2/3. Each individual still has the same'yincome and is subject to the same prices.Calculate the market demand for x as a functionof income and prices.5. Suppose now that we know m = 250, P = 5,and Py3. What is the market demand for x?This should be a number.F=

The utility function for part (3) is not given and hence cannot be solved For part (4)

4. Consider now that 100 individuals (type A) have the utility function U = x2/3y¹/3 and the other 100 (type B) have the utility function U = x¹/3y2/3. Each individual still has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. Х 5. Suppose now that we know m = 250, P = 5, and Pu 3. What is the market demand for x? This should be a number.

4. Consider now that 100 individuals (type A) have the utility function U = x2/3y¹/3 and the other 100 (type B) have the utility function U = x¹/3y2/3. Each individual still has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices. Х 5. Suppose now that we know m = 250, P = 5, and Pu 3. What is the market demand for x? This should be a number.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.12P

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