The Table below gives an individual's MUx and MUy schedule. Suppose X and are the only two commodities available and Px = P2 while Py = P1. The individual's income is P12 and is all spent. Q 1 2 3 4 5 Mux 16 14 12 10 8 6 MUY 11 10 9 8 7 6

Frank's utility function for WWE wrestling event tickets (x,) and NASCAR race tickets (2) is of the following Cobb - Douglas form: U(x,, ) = x 1 2 0.25 0.75 x 2 his income is Y, the price of WWE tickets is p₁, and the price of NASCAR tickets is p₂. a. Mathematically derive his 1 demand functions for x, and x2. No graphs! You are not required to use Lagrangian Function, you can just use the demand formulas for the Cobb - Douglas utility function (Chapter 5, fourth slide). b. Using your answers from part (a), find the demand functions for x and x2, and mathematically prove that they have the proper negative slope.

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Each day Amina, who is in third grade, eats lunch at school. She likes only Twinkies (t) and apple juice (a), and these provides her a utility of; utility = U(t,a) = vVta. If apple juice is graph on the vertical axis and Twinkies on horizontal axis. Amina has a dimisnishing MRS. %3D %3D True False