For each of the following utility functions answer the following questions (i-iv): i) Calculate the marginal utilities MUx and MUy ii) Calculate MRSx,y and determine if this is diminishing as good x increases iii) if I=80, Px= 4, Py=2, determine the utility maximizing basket. iv) Determine the demand curves for good x and y (a). u(x,y)= 6x^2/3 +2y (b) u(x,y)= 3x+7y

For each of the following utility functions answer the following questions (i-iv): i) Calculate the marginal utilities MUx and MUy ii) Calculate MRSx,y and determine if this is diminishing as good x increases iii) if I=80, Px= 4, Py=2, determine the utility maximizing basket. iv) Determine the demand curves for good x and y (a). u(x,y)= 6x^2/3 +2y (b) u(x,y)= 3x+7y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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