Utility function, Econometrics

Peter's utility function is u(x, y) = x + 2y where  x  is the number of ounces of coffee and  y  is the quantity of sugar in grams.  Let unit prices be given by  Px = 6 cents,  Py = 2 cents, and assume that Peter has $9 to spend on coffee and sugar. Find Peter's best choice, in terms of quantities of coffee and sugar. Illustrate it graphically.

Posted Date: 4/1/2013 3:42:34 AM | Location : United States







Related Discussions:- Utility function, Assignment Help, Ask Question on Utility function, Get Answer, Expert's Help, Utility function Discussions

Write discussion on Utility function
Your posts are moderated
Related Questions
advantages and disadvantages

how to calculate trade potential on eviews?

This problem refers to Doughtery's Educational Attainment and Earnings Functions (EAEF) data set, accessible through the course website. This data is a subset of the U.S. National

Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and

a. If 10,000 two-liter bottles of Pepsi are currently being demanded in your community each month, and the price increases from $1.90 to $2.10 per bottle, what will happen to quant

Peter's utility function is u(x, y) = x + 2y where  x  is the number of ounces of coffee and  y  is the quantity of sugar in grams.  Let unit prices be given by  P x = 6 cents,  P

It was shortly before noon. Mr. Zhi-Long Chen, director of Overnight Delivery Operations at Capital Crab and Lobster, Inc.(CCL) in Washington DC, anxiously watched the Weather Chan

A firm has the following inverse demand function:       where Q  is Quantity and P  is Price   (a) Find the firm's marginal revenue function. (b) Find the level of out

if there is multicollinearity so why we can not estimate the value of parameters?