Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK’s demand for bricks is. The research department has estimated that ConstrUK’s preferences over bricks (x) and cement (y) can be described by the utility function please see the picture attached, and b=7 The price for one bag of cement is equal to £1. It is estimated that ConstrUK’s budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve.

Q3: Are the following utility functions quasi-linear, quasi-concave, quasi-convex, homogenous of degree 0, homogenous of degree 1? Show your working: 1) U(x,y) = min(x,y) 2) U(x,y) = (x" + yaja

Please I need help for part E and F. I have the intuition in mind but I am not too sure about it. I thought about reversing the inverse demand function given so it now looks like Q = 30 - P. Since Bertrand is concerned about prices, then we can solve for p1 and p2 using the reversed of the inverse demand function (P = 30 - Q). From here, we use the same familiar procedure to solve for the equilibrium price which I think will be the same. Please help explain if my understanding is correct and provide further explanation for me. Thanks for the help.

Alonso has preferences for sport cars (C) and paella (P) given by the utility function U(C, P) = 4CP. The prices for C and P are, respectively, pc and pp. In what follows, do not worry if the results are not integers.

Consider the following demand function: U(X,Y) = X5Y5 Find the solution of the maximization problem.

An agent's utility function is u(x1, X2, X3, X4) = 2min{x1,x2} + 3max{x3,x4}. Find the demand functions for each good.

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…

Xander has a utility function u(x,y) = xy and an income of M. Assume that the price of x is $4 and the price y is $2. If Xander's income rises from M = 104 to M = 152, what the resulting increase in demand for good x? increases by 6 units increases by 9 units increases by 11 units increases by 14.5 units

Suppose that an individual has a Utility function represented by a CES function. The utility function of the individual is given as: U(x,y) = x1/2 + y1/2 c. Is the demand more elastic or inelastic than a Cobb-Douglas Utility function? Use the Slutsky matrix to illustrate.

Elsie sells homemade lemonade. If she prices a glass of lemonade at $3, she sells 12 glasses a day. If she gives a $0.50 discount (per glass), she can sell 3 more glasses per day. Write a linear demand equation q = mp + b, where p is the price per glass, and q is the number of glasses she can sell per day. Suppose that it costs her 20 cents a glass to make lemonade. There is no fixed cost. Write down the revenue function, cost function, and profit function as functions of p. How much should she charge per glass to maximize her profit? What is the maximum profit?