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THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS. Please answer all questions. Thanks

THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS. Please answer all questions. Thanks

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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THIS IS NOT A GRADED ASSESSMENT, READ AGAIN THE QUESTIONS.

Please answer all questions. Thanks

 

 

PLEASE ANSWER ALL THE 4 QUESTIONS For Review purposes You are choosing between two goods, X and Y, and your MU from each is shown in the table below. Units of X MUX Units of Y MUY 1 10 1 8 2 2 7 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 For numbers 3 and 4, you may show it through graph then take a picture of your graphs and make a separate attachment. 1. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? what quantities of each will you purchase to maximize utility? How much would be your utility per product and what total utility will you realize? Note: Construct your own tabular illustration to fit the variables you need to solve this problem 2. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of each will you purchase to maximize utility? How much would be your utility per product and what total utility will you realize? Note: Construct another tabular illustration to fit the variables you need to solve this problem. 3. Construct budget line. a. with money income of $9 and the prices of X and Y are $2 and $1, respectively. b. identify on the budget line the quantity of product X and Y that yields the maximum utility. c. Construct an indiference curve to show the tangent line where maximum utility is achived. Note: On the same graph construct another budget line. d. with money income of $9 and the prices of X and Y are $1 and $1, respectively. e. identify on the budget line the quantity of product X and Y that yields the maximum utility. f. Construct an indiference curve to show the tangent line where maximum utility is achived. 4. Using the two prices and quantities of product X, derive a demand curve for product X. Note: Align the graph of the budget line with the graph od the demand curve for product X
Transcribed Image Text:PLEASE ANSWER ALL THE 4 QUESTIONS For Review purposes You are choosing between two goods, X and Y, and your MU from each is shown in the table below. Units of X MUX Units of Y MUY 1 10 1 8 2 2 7 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 For numbers 3 and 4, you may show it through graph then take a picture of your graphs and make a separate attachment. 1. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? what quantities of each will you purchase to maximize utility? How much would be your utility per product and what total utility will you realize? Note: Construct your own tabular illustration to fit the variables you need to solve this problem 2. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of each will you purchase to maximize utility? How much would be your utility per product and what total utility will you realize? Note: Construct another tabular illustration to fit the variables you need to solve this problem. 3. Construct budget line. a. with money income of $9 and the prices of X and Y are $2 and $1, respectively. b. identify on the budget line the quantity of product X and Y that yields the maximum utility. c. Construct an indiference curve to show the tangent line where maximum utility is achived. Note: On the same graph construct another budget line. d. with money income of $9 and the prices of X and Y are $1 and $1, respectively. e. identify on the budget line the quantity of product X and Y that yields the maximum utility. f. Construct an indiference curve to show the tangent line where maximum utility is achived. 4. Using the two prices and quantities of product X, derive a demand curve for product X. Note: Align the graph of the budget line with the graph od the demand curve for product X
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