Suppose that there are two goods, X and Y. The utility function is ?(?, ?) =...

Suppose that there are two goods, X and Y. The utility function is ?(?, ?) = 5?² ?. The price of Y is $2 per unit, and the price of X is P. Income is $2,400.

A.) Derive the demand curve and state the law of demand in relation to your product or service.

B.) ? = 800 − 10?^0.5 . Calculate elasticity of demand when Q=100, Is the good elastic?

C.) ? = 800 − 10?^0.5 − 0.5?. Calculate elasticity of income when Q=4 and I=100. Is the good normal or inferior?

D.) ?_A = 80 − 10?^0.5 − ?B Calculate cross price elasticity when Q= 16 and ?B =10. Are the goods complementary or are they substitutes?

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Rahul Sunny answered 1 year ago

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