U= (xy)1/3 Derive the Marshallian demands and indirect utility functions

U= (xy)^1/3

Derive the Marshallian demands and indirect utility functions

Expert Solution

Rahul Sunny answered 1 year ago

A person's preferences are represented by U=(XY)1/2 Find his Marshallian demand for x, his indirect utility...

A person's preferences are represented by U=(XY)1/2 Find his Marshallian demand for x, his indirect utility functions, his expenditure function and his Hicksian demand for good Y.

Consider the utility function of U(X,Y) = X0.2Y0.4 Derive the Marshallian demand curve for X Derive...

Consider the utility function of U(X,Y) = X0.2Y0.4 Derive the Marshallian demand curve for X Derive the Hicksan demand curve for X What is the own-price elasticity for X? What is the income elasticity of X? What is the price elasticity of X with respect to y (Py) If the income level is 120, then what is the Pxthat maximizes total spending Show that Slutsky equation holds Show that ex,px+ex,py+ex,I=0. What does it mean? Show that Engle Aggregation holds. What does it...

hx=u, hy=u/2. Find the Marshallian demands for X and Y.

Suppose Mike’s utility function is u(x,y)=2lnx +lny. 1. Derive the demand functions. 2. Is y a...

Suppose Mike’s utility function is u(x,y)=2lnx +lny. 1. Derive the demand functions. 2. Is y a Normal good? 3. Is x an ordinary good? 4. Assume the price of x is initially 1 dollar, and the price of y is also 1 dollar. Given that income is 9, if the price of x doubles to 2 dollars, decompose the change in consumption of x into substitution effect and income effect. Illustrate your answer with a graph. 5. Now, given the...

1. Suppose Mike’s utility function is u(x,y)=2lnx +lny. a. Derive the demand functions. b. Is y...

1. Suppose Mike’s utility function is u(x,y)=2lnx +lny. a. Derive the demand functions. b. Is y a Normal good? c. Is x an ordinary good? d. Assume the price of x is initially 1 dollar, and the price of y is also 1 dollar. Given that income is 9, if the price of x doubles to 2 dollars, decompose the change in consumption of x into substitution effect and income effect. Illustrate your answer with a graph. e. Now, given...

a) U = xy b) U = (xy)^1/3 c) U = min(x,y/2) d) U = 2x...

a) U = xy b) U = (xy)^1/3 c) U = min(x,y/2) d) U = 2x + 3y e) U = x^2 y^2 + xy 4. All functions except c) are differentiable. Do these functions exhibit diminishing marginal utility? Are their Marshallian demands downward sloping? What can you infer about the necessity of diminishing marginal utility for downward- sloping demands?

1. Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope...

1. Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope of the indifference curve when Y = 2 and X = 7? Assume that good X is on the horizontal axis and good Y is on the vertical axis. A. 7 B.3 C. 1 D. 4/7 2.Kyle's utility function is U = 2X + 3Y, where X is units of good X, and Y is units of good Y. What is the marginal utility...

Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1,000xy...

Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1,000xy + 2,000. Tammy’s utility function is U(x, y) = xy(1 - xy). Oral’s utility function is -1/(10 + xy. Billy’s utility function is U(x, y) = x/y. Pat’s utility function is U(x, y) = -xy. a. No two of these people have the same preferences. b. They all have the same preferences except for Billy. c. Jim, Jerry, and Pat all have the same...

Let the Utility Function be U=min { 2X , Y }. Find the compensated demands for...

Let the Utility Function be U=min { 2X , Y }. Find the compensated demands for X and Y by solving the Expenditure Minimization Problem.

Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope of...

Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope of the indifference curve when Y = 5 and X = 2? Assume that good X is on the horizontal axis and good Y is on the vertical axis.

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