I ONLY NEED PARTS E, F, G! 5. Christina likes only spare ribs, R (measured in...

I ONLY NEED PARTS E, F, G!

5. Christina likes only spare ribs, R (measured in slabs), and fried chicken, C (measured in chickens). Her utility function is

U = 10RC².

Christina has $600 income and she pays $5 for a slab of ribs and $10 for a chicken.

A. (2 points) Set up the Lagrangian for Christina's constrained utility maximization problem.

B. (9 points) Using differential calculus and algebra, find how much of each good she should buy if he wishes to maximize his utility subject to the constraints on her purchasing power using the Lagrangian method.

C. (2 points) What is the value and interpretation of the Lagrange multiplier for this problem?

D. (2 points) How much utility is attained with the original utility maximizing amounts of ribs and chicken?

E. (8 points) Suppose that the price of ribs increases to $10 per slab with the price of chicken and income constant. Find the new utility maximizing amounts of ribs and chicken. (You need not use the Lagrangian method)

F. (8 points) Determine the decomposition basket for the substitution effect due to the change in the price of ribs.

G. (4 points) Find the numerical values of the income and substitution effects of the change in the price of ribs measured in terms of slabs of ribs.

Expert Solution

Rahul Sunny answered 1 year ago

5. Christina likes only spare ribs, R (measured in slabs), and fried chicken, C (measured in...

5. Christina likes only spare ribs, R (measured in slabs), and fried chicken, C (measured in chickens). Her utility function is U = 10RC2. Christina has $600 income and she pays $5 for a slab of ribs and $10 for a chicken. E. (8 points) Suppose that the price of ribs increases to $10 per slab with the price of chicken and income constant. Find the new utility maximizing amounts of ribs and chicken. (You need not use the Lagrangian...

I ONLY NEED PART "e" and "g", parts "a" to "d" have been answered and included...

I ONLY NEED PART "e" and "g", parts "a" to "d" have been answered and included for reference. 3. Here are the world record times for women in the 10,000-meter run over several years. Record Year 1979 1981 1981 1981 1982 1983 1983 1984 1985 1986 Time (in seconds) 1972.5 1950.8 1972.5 1937.2 1895.3 1895.0 1887.6 1873.8 1859.4 1813.7 Which is the explanatory variable, and which is the response variable? The explanatory variable is Record Year and the response variable...

Please only answer E, F and G. I need handwritten workings please. NO EXCEL. Gerald has...

Please only answer E, F and G. I need handwritten workings please. NO EXCEL. Gerald has taken out a loan of $100,000 today to start a business. He has agreed to repay the loan on the following terms: • Repayments will be made on a monthly basis. The first repayment will be made exactly one month from today. • The repayments for the first 5 years will cover interest only to help reduce the financial burden for Gerald’s business at...

I NEED PARTS E AND F ONLY, CHECKING MY WORK, THANK YOU! P17.1A Combat Fire, Inc....

*I NEED PARTS E AND F ONLY, CHECKING MY WORK, THANK YOU!* P17.1A Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390...

(Only need d, e, and f) A resistor R = 12 MΩis connected in series with...

(Only need d, e, and f) A resistor R = 12 MΩis connected in series with a capacitor C = .7 μF and a battery V = 12 volts. a) What is the time constant of this circuit? b) How many seconds will it take for the voltage across the capacitor to equal 10 volts? c) How many seconds will it take for the current to drop to 20% of its maximum value? d) After 30 seconds, what are the...

PARTS A-F ARE ALREADY SOLVED. I just need G - I Martin Office Supplies paid a...

PARTS A-F ARE ALREADY SOLVED. I just need G - I Martin Office Supplies paid a $3 dividend last year. The dividend is expected to grow at a constant rate of 6 percent over the next four years. The required rate of return is 12 percent (this will also serve as the discount rate in this problem). Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the anticipated...

Only need answers for e,f,g,h,i Jacob has the utility function for goods x and y asu(x,...

Only need answers for e,f,g,h,i Jacob has the utility function for goods x and y asu(x, y) = ?2/3?2/3. The price of good x is $2 each, and the price of good y is $5 each. Jacob has a total income of $120 to spend on these two goods. (a) Write down Jacob's budget line, and show in the graph. (b) Write down the budget exhaustion condition (BC) of Jacob’s optimization problem.(c) Write down the rationality condition (RC) of Mr....

I only need D E and F answered I have completed the rest Consider two countries:...

I only need D E and F answered I have completed the rest Consider two countries: Canada (CAN) and Iceland (ICE). Two goods can be produced: gloves (g) and socks (s). Goods are produced only using labour, and the unit labour requirements of the two goods in each country are given in the following table: ??????= 2 ??????= 8 ??????= 3 ??????= 6 Assume that Canada has 3000 units of labour, while Iceland has 1500 units of labour. When setting...

(a) (f ∘ g)(3) (b) g(f(2)) (c) g(f(5)) (d) (f ∘ g)(−3) (e) (g ∘ f)(−1) (f) f(g(−1))

Answer ”True” or ”False” for each of the following: (i) If f,g : R → R...

Answer ”True” or ”False” for each of the following: (i) If f,g : R → R and are both continuous at a number c, then the composition function f ◦g is continuous at c. (ii) If functions h1, h2 : R → R and are both uniformly continuous on a non-empty set of real numbers E, then the product h1h2 is uniformly continuous on E. (iii) If a function g : R → R, then there exists a function G...

Question