consider the following description of a two-goods example: Assume two consumers with utility functions of the form „1/2 1/2 U* (*1, 2) = r and U (. 2) = 2- Further, suppose that consumer X is endowed with w = (6, 2) and consumer Y with wY (2,6).

Give typing answer with explanation and conclusion A consumer has the utility function U(q1,q2) = q10.3 + q2 Assume p2 = 1 and Y = 100. What is the equivalent variation of a price increase for good 1 from 1 to 4?

From the demand function Qdx = 12 – 2Px (Px is given in dollar), derive:(a) the individual’s demand schedule and demand curve, and(b) what is the maximum quantity this individual will ever demand of commodity X per time period?

Suppose the price of good X decreases. The new consumer equilibrium level of good X will be:     higher than before the price change.     lower than before the price change.     indeterminate without more information.     the same as before the price change.

(b) U(x, y) = min [ax, y]

Suppose you have the following indirect utility function: V(Pa, Py, I) = In PxPy What are marshallian demands for x and y? I (a) (9x9y) = (22) (b) (9,9y) = (In, In 2) (c) (9, 9y) = (exp(2p/py), exp(2ppy)) I (d) (9x, gy) = (2pr+py' px+2py) What is the expenditure function for the associated expenditure minimization problem? (a) E(pa, Py, U) = (P + Py) ln(U) (b) E(pa, Py, U) = √exp(U)Papy (c) E(pa, Py, U)= (p²+p²) In(U) (d) E(pa, Py, U) = exp(U)²papy What are the individual's Hicksian demands for goods x and y? (a) (h₂, hy) = ((BU)¹/², (PU) ¹/²) (b) (ha, hy) = (RU, DU) (c) (ha, hy) = ((2 exp(U))¹/², (exp(U))¹/²) -1/2 (d) (hx, hy) = ((P₂PzU)−¹/², (P₂PzU)-¹/2) Are x and y complements or substitutes?

Problem 2 Joan has the following utility function: u(x, y) = 5x + 3y. (a) Find Jane's marshallian demands. (b) Find Jane's hicksian demands. Consider that income is I = $8, and prices are given as p = $4, Py = $2. (c) Does Jane have enough money to attain a utility level of 20? Justify your answer. (d) Assume thè price of y marginally increases. Find the total, income and substitution effect for r due to the change in py.

Mary has the following utility function: u(x, y) = 3 ln(x) + 2y. Her income is given by I = 10 and the prices originally are p = 1 and py = 2 (b) How much of each good is Mary currently consuming?

buyers in the chocolate market demand 200 units of chocolate when price is zero and decrease the purchase of chocolates by 2 units for every one unit increase in price. write down the equation of the demand function in the form of Q= f(P)

Consumer equilibrium exists when: P/MU of all goods is the same MU/P for all goods is the same TU/P for all goods is the same the MU for all goods is the same