+1-415-670-9189
info@expertsmind.com
Practical problems in price theory
Course:- Microeconomics
Reference No.:- EM1372




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Problem: Warming Up!

Luke likes to consumer CDs (good1) and pizzas (good 2). His preference over both goods is given by the utility functio

U(x1; x2) = x21 x42.

If Luke allocates $200 to spend on both goods and if a case of CDs costs $20 and a pizza costs $10, how many cases of CDs and pizzas would he consume in order to maximize his utility subject to his income. Show your work and illustrate your answer graphically.

Summary:

The problem in economics in price theory deals with deriving maximum marginal utility and marginal rate of substitution.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Suppose the demand for car washes in Collegetown falls as a result of a cutback in college enrollment. Show graphically how the price and output for the market and for a singl
What is the price elasticity of demand? How is the price elasticity of demand calculated and describe and explain the three principal methods of financing that are used by cor
You will not be making any payments on the interest (from the loan) generated from the principle while you are attending school, so no payments for four years - For each opt
Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers.
There have been several mergers of large firms within oligopolies. In this assignment, you are to select one merger that has been approved by the Federal Trade Commission (F
What are blogs and how can marketers use them? What is source credibility, and what are two factors that influence our decision as to whether a source is credible? What is the
As the ebola epidemic keep spreading in the country of Liberia more people are falling ill and a large percentage eventually perish. Use the Production Possibility Frontier to
A firm produces a product with a fully allocated average cost equal to $20.  If the price elasticity of demand for the product is -5,what should the product price be set at?