1(a)if we allow for the possibility of satiation, the consumer's budget constraint takes the form pxs pw, Walrus' law then becomes pz(p) so for all p2 0. Show that the standard textbook proof of the existence of Walrasian equilibrium still applies for this generalized form of Walrus' law.

Suppose that you want to derive and draw the demand function for Mr. Seong (also known as Player 456). Mr. Seong likes to eat Dalgona Candy (D) and drink Soju (S). Suppose Mr. Seong's preferences can be expressed as U(D,S) = (D)º.² · (S)0.8. Suppose further the price of a Dalgona Candy is 2 (pº = 2) and the price of Soju is 4 (ps = 4). Mr. Seong has a budget of 100 to spend on the two goods. A. Use the substitution method to find Mr. Seong's optimal choice of Dalgona Candy and Soju. B. Use any method to find Mr. Seong's optimal choice of Dalgona Candy and Soju if the price of Soju was 5 (instead of 4). Feel free to use the Cobb-Douglas short-cut method if you want. C. Use your answers to A and B to derive the demand for Soju in the two diagrams below. That is, draw the change in the top diagram and then use your result to derive the demand curve in the bottom diagram. Several hints have been drawn in the diagram below. D 50 10 ps 5 4 20 20 25 S FYI: The Cobb-Douglas short-cut can be…

1(a)lf we allow for the possibility of satiation, the consumer's budget constraint takes the form pxs pw, Walrus' law then becomes pz(p) so for all p2 0. Show that the standard textbook proof of the existence of Walrasian equilibrium still applies for this generalized form of Walrus' law.

Suppose an individual has the following utility function: U(X,Y)= min{X, 2Y}, and they choose marshallian demands gx,gy. Suppose you have an increase in px. Which of the following is true about the change in demand for good X, gx? (a) No substitution effect, because they only consume one of the goods. (b) No substitution effect, because they always consume the goods in fixed proportion. (c) No income effect, because they only consume one of the goods. (d) No income effect, because they always consume the goods in fixed proportion. Which of the following production functions exhibits constant returns to scale? (a) f(k,l) = 0.310.7 (b) f(k, l) = kl (c) f(k, 1) = ln(k)+ln(1) (d) f(k, l) In(k) + In(1) =

Suppose that consumer has the following utility function: U(X,Y) - X1/2y1/4. Suppose also that P 2, P -3 and 1=144. What would be the optimal consumption of X and Y at the equilibrium. respectively? 36, 24 12,40 24,32 48.16