c and d please For problems 1, 2, 3, we consider an agent Ann who consumes goods and y and has a utilityU (x, y) = x²y. In these problems, Good costs P, and good y costs Py.(1)Ann has I to spend.(a) Write out Ann's utility maximization problem.(b) Find: MU, MUy, and MRSxy.(c) Write out Ann's tangency condition. What is the other equation needed to solve for Ann'sdemand?(d) Find Ann's demands for x and y as functions of P₂, Py, and I. (Partial credit if you do thisonly for I = 30, P₂z = 5 and Py = 2.)

Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

For problems 1, 2, 3, we consider an agent Ann who consumes goods and y and has a utility U(x, y) = x²y. In these problems, Good x costs P₂ and good y costs Py. (1) Ann has I to spend. (a) Write out Ann's utility maximization problem. (b) Find: MU, MUy, and MRS zy- (e) Write out Ann's tangency condition. What is the other equation needed to solve for Ann's demand? (d) Find Ann's demands for x and y as functions of Pz, Py, and I. (Partial credit if you do this only for I = 30, P₂ = 5 and Py = 2.)

For problems 1, 2, 3, we consider an agent Ann who consumes goods and y and has a utility U(x, y) = x²y. In these problems, Good x costs P₂ and good y costs Py. (1) Ann has I to spend. (a) Write out Ann's utility maximization problem. (b) Find: MU, MUy, and MRS zy- (e) Write out Ann's tangency condition. What is the other equation needed to solve for Ann's demand? (d) Find Ann's demands for x and y as functions of Pz, Py, and I. (Partial credit if you do this only for I = 30, P₂ = 5 and Py = 2.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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