For one purpose, the utility function of the consumer is u(x,y)=4?x+2y for maximum utility. 1. For...

For one purpose, the utility function of the consumer is u(x,y)=4?x+2y for maximum utility.

1. For one purpose, the customer's income is I, and the price of X is Px and the price of Y is Py. Obtain the demand function of this person's Y ash through Px, Py, I.

2. For one purpose, the consumer has an income I = 40, and initially the price of Px=1, and the price is Py=1.

(1) What is the difference between the marginal utility of X ash and the marginal utility of Y ash at the maximum utility?

(2) What is the maximum utility level?

(3) When income is increased from 40 to 80, what is the income elasticity of the demand for X ash?

(4) (While the price of Income 40 and Y ash remains at 1) When the price of X ash falls from 1 to 0.8, find the difference between the maximum utility consumed by price effects and the change in consumption by income effects.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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