Determine wilburs demand function for good

Assignment Help Econometrics
Reference no: EM13183839

Assume Wilbur's utility function is U=(x1)*(x2)*(x3). Further assume that the law dictates that Wilbur consume two units of X1 for every unit of X2. Determine Wilbur's demand function for good 1. Explain, in words, all the steps in your derivation of his demand function for good 1. Now derive Wilbur's demand functions for goods 2 and 3. How many units of the three goods will he choose to purchase if his income is $72.00, p1 = $1.00, p2 = $0.50 and p3 = $7.00.

Can anyone help me start this? would I have to change the utility function considering the second assumption before i derive demand functions?

Reference no: EM13183839

Questions Cloud

Affect their rates of adoption : Using examples, discuss how the characteristics of Innovations could affect their rates of adoption.
Features of large-scale agricultural exhibitions : Agricultural exhibitions or fairs are becoming more popular in the Caribbean. (1) Briefly describe the main features of large-scale agricultural exhibitions.(2) Discuss the strength and limitations of agricultural exhibition in Extension work.
Discuss the behavior of the rescue team : (The Strange Case of Matthew Buford)Discuss the behavior of the rescue team and do you think that groupthink as discussed in the Janis article was operating here, why or why not?
Which of these policies is most likely to reduce pollution : a pollutoin control agency is considering the following rgulatory policies: (i) taxing the use of one input that increases pollution. (other inputs affect pollution too, both increasing and decreasing it) (ii) taxing the final goods that firms pro..
Determine wilburs demand function for good : Assume Wilbur's utility function is U=(x1)*(x2)*(x3). Further assume that the law dictates that Wilbur consume two units of X1 for every unit of X2. Determine Wilbur's demand function for good 1. Explain, in words, all the steps in your deriv..
Define the long run equilibrium for monopolistic competition : Graph a market with a tax where firms pay the majority of the tax. 3. Graph the long run equilibrium for perfect competition. Using a similar average cost curve, graph the long run equilibrium for monopolistic competition. Compare the results. Gra..
Compute the depreciation schedule : The RX Drug company has just purchased a capsulating machine for $76,000 the plant engineer estimates the machine has a useful life of 5 years and no salvage value. Compute the depreciation schedule using: a) Straight-line depreciation b) Double d..
Find the equilibrium wage and employment before any tax : Suppose the supply for optometrists is given by LS= -6 + 0.6W, while the demand curve is given by LD= 50-W. Also, assume that the government imposes a payroll tax equal to $8 for each optometrist hired by a firm. a. Find the equilibrium wage and e..
What is the optimal schooling level : It can be shown that the marginal return to schooling investments is MW(s) = k0 = ps. What condition governs the optimal choice of education, s*? If r= 5% and ifk 0 = 5.25, what is the optimal schooling level? Suppose that the wage-schooling sc..

Reviews

Write a Review

 

Econometrics Questions & Answers

  Estimate the compound growth rates

The sales information for the Lonestar Sports Apparel Corporation for the last 12 years as follows:

  Acquiring a substitute product

Determine what should you do to maximize benefits with respect to values after you acquire a substitute product. Which values should you change more?

  Filed for bankruptcy

In late 1990s more than twenty-five domestic steel firms have filed for bankruptcy. A combination of low values with strong competition through foreign competitors and so-called legacy expenses of unions are cited as the primary reason why so many s..

  Describe the process through which money is created

Explain the process through which money is constructed. Describe how current events less than ninety days have affected this process and the effect current events will have on the economy as a whole.

  Determine profit-maximizing amount of electricity to produce

Q1 kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 8,000 + 6Q12and C2(Q2) = 6,000 + 3Q22, respectively. Determine the pro..

  Define the marginal benefit function

A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..

  Calculate the money supply and the currency deposit ratio

Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, excess reserves are $15 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the currency deposit r..

  What total output must the cartel produce

What total output must the cartel produce in order to maintain this price and what output will an individual firm be restricted if this price is to be maintained (assume all firms are permitted to produce the same level of output)?

  Explain steady rate

Matt Christpher is a 25 year old mechanical engineering and his salary next year will be $60,000.Matt expects that his salary will increase at a steady rate of 5%per year until his retirement at age 65.

  What kind of expression is this?

Suppose the inverse demand for a product is Q = ?P 1/2 + 10. Write the expression for the demand curve, i.e., P = f(Q). What kind of expression is this?

  What is the net national cost of the tariff

Suppose the world price for a good is 40 and the domestic demand and supply cureves are given as: Demand: P=80-2Q Supply: P=5+3Q A) How much is consumed? B) How much is produced at home? C) What are the values of consumer and producer surplus?

  Effects of imported products to the countries net exports

Provide three examples of operating firm formed as, sole proprietorship, partnership and corporation. Describe how you decided on categorizing them.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd