Question

The first of the two consumers faced with the same prices on the 1vex2mal-s preferleriu1(x1, x2)...

The first of the two consumers faced with the same prices on the 1vex2mal-s preferleriu1(x1, x2) =x1/31x2/32 be given. The preferences of the second consumer on the same goods should be given to iseu2(x1, x2) = 4lnx1+ 2x2

Calculate the prices of goods if the first consumer's budget is 24 turkish lira

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Each individual consumer takes the prices as given and chooses her consumption bundle,(x1,x2)ER^2, by maximizing the...
Each individual consumer takes the prices as given and chooses her consumption bundle,(x1,x2)ER^2, by maximizing the utility function: U(x1,x2) = ln(x1^3,x2^3), subject to the budget constraint p1*x1+p2*x2 = 1000 a) write out the Lagrangian function for the consumer's problem b) write out the system of first-order conditions for the consumer's problem c) solve the system of first-order conditions to find the optimal values of x1, x2. your answer might depend on p1 and p2. d) check if the critical point...
A consumer’s preferences over two goods (x1,x2) are represented by the utility function ux1,x2=5x1+2x2. The income...
A consumer’s preferences over two goods (x1,x2) are represented by the utility function ux1,x2=5x1+2x2. The income he allocates for the consumption of these two goods is m. The prices of the two goods are p1 and p2, respectively. Determine the monotonicity and convexity of these preferences and briefly define what they mean. Interpret the marginal rate of substitution (MRS(x1,x2)) between the two goods for this consumer.   For any p1, p2, and m, calculate the Marshallian demand functions of x1 and...
(Unconstrained Optimization-Two Variables) Consider the function: f(x1, x2) = 4x1x2 − (x1)2x2 − x1(x2)2 Find a...
(Unconstrained Optimization-Two Variables) Consider the function: f(x1, x2) = 4x1x2 − (x1)2x2 − x1(x2)2 Find a local maximum. Note that you should find 4 points that satisfy First Order Condition for maximization, but only one of them satisfies Second Order Condition for maximization.
Suppose an individual consumers two goods, with utility function U (x1; x2) = x1 + 6(x1x2)^1/2...
Suppose an individual consumers two goods, with utility function U (x1; x2) = x1 + 6(x1x2)^1/2 + 9x2. Formulate the utility maximization problem when she faces a budget line p1x1 + p2x2 = I. Find the demand functions for goods 1 and 2. (b) Now consider an individual consumers with utility function U (x1; x2) = x1^1/2 + 3x2^1/2. Formulate the utility maximization problem when she faces a budget line p1x1 + p2x2 = I. Find the demand functions for...
2. A consumer has the utility function U ( X1, X2 ) = X1 + X2...
2. A consumer has the utility function U ( X1, X2 ) = X1 + X2 + X1X2 and the budget constraint P1X1 + P2X2 = M , where M is income, and P1 and P2 are the prices of the two goods. . a. Find the consumer’s marginal rate of substitution (MRS) between the two goods. b. Use the condition (MRS = price ratio) and the budget constraint to find the demand functions for the two goods. c. Are...
Bilbo can consume two goods, good 1 and good 2 where X1 and X2 denote the...
Bilbo can consume two goods, good 1 and good 2 where X1 and X2 denote the quantity consumed of each good. These goods sell at prices P1 and P2, respectively. Bilbo’s preferences are represented by the following utility function: U(X1, X2) = 3x1X2. Bilbo has an income of m. a) Derive Bilbo’s Marshallian demand functions for the two goods. b) Given your answer in a), are the two goods normal goods? Explain why and show this mathematically. c) Calculate Bilbo’s...
3. Suppose that a consumer has a utility function u(x1, x2) = x1 + x2. Initially...
3. Suppose that a consumer has a utility function u(x1, x2) = x1 + x2. Initially the consumer faces prices (1, 2) and has income 10. If the prices change to (4, 2), calculate the compensating and equivalent variations. [Hint: find their initial optimal consumption of the two goods, and then after the price increase. Then show this graphically.] please do step by step and show the graph
When all consumers’ in a given market face the same prices and choose their consumption bundle...
When all consumers’ in a given market face the same prices and choose their consumption bundle optimally, then: a. All consumers who consume a positive amount of both goods have the same marginal Rate of Substitution, independently of their income and preferences. b. All consumers have the same marginal Rate of Substitution, independently of their income and preferences. c. All consumers with identical preferences have the same marginal Rate of Substitution, independently of their income. d. All consumers with identical...
Suppose that a consumer whose preferences are defined over two commodities has an endogenous budget consisting...
Suppose that a consumer whose preferences are defined over two commodities has an endogenous budget consisting only of those commodities. Draw the budget constraint for this consumer so that x1 on the horizontal axis is x2 on the vertical axis. Mark the basket owned by the consumer as Point E on this budget. Let this also be the consumer's optimal solution (non-Vertex solution). how is it possible for the consumer to come to a higher level of benefit when the...
There are two goods, Good 1 and Good 2, with positive prices p1 and p2. A...
There are two goods, Good 1 and Good 2, with positive prices p1 and p2. A consumer has the utility function U(x1, x2) = min{2x1, 5x2}, where “min” is the minimum function, and x1 and x2 are the amounts she consumes of Good 1 and Good 2. Her income is M > 0. (a) What condition must be true of x1 and x2, in any utility-maximising bundle the consumer chooses? Your answer should be an equation involving (at least) these...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT