Find the optimal basket containing these two goods

Assignment Help Business Economics
Reference no: EM13999021

Consider a Cobb-Douglas utility function of the type u(x,y) =x2y2. The prices of the two goods x,y are px = $2 and py=$4 consumers income is given by m=$100.

A) find the optimal basket containing these two goods.

B) find the demand functions for x. Must be shown graphically too.

C) what are the shares of income spent on each good?

D) draw the Engel curve for x

Reference no: EM13999021

Financial investments for future economic growth

The economy depends on Consumption for short term economic activity and Financial Investments for future economic growth. Frictional unemployment is sometime caused by negativ

Most significant costs for for-profit colleges

Identify three of the most significant costs for for-profit colleges and discuss (in the short run) how the magnitude of each cost type affects (i) profits, (ii) equilibrium e

Calculate the cost of the companys retained earnings

The corporate treasurer of Rollinsford Company expects the company to grow at 3% in the future, and debt securities at 4% interest (tax rate = 35%) to be a cheaper option to f

Products price elasticity of demand as defined

Allen Corporation's vice president in charge of marketing believes that every 9% increase in the selling price of one of the company's products would lead to a 11% decrease in

Bavarian crystal works

As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.

Calculate the first-order condition

The problem is to choose x to maximize f(x;a) = ax- 3x^2, where á is exogenous, subject to the constraint. Calculate the first-order condition for this problem. For this probl

At what price will demand fall to zero

where, q is the quantity demanded at price p when the person’s income is I. Assume initially that the person’s income is $40,000. Show work & calculations. At what price will

What are the current cost of production for the company

A firm manufactures widgets according to the production function Q = 8L1/4 K3/4, where Q is the number of skis made, K is the amount of capital, and L is the amount of labor e

Reviews

Write a Review

 
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