Budget constraint, Macroeconomics

Assignment Help:

The consumer's utility function is u(x1,x2) = (x1) (x2)^2

(a) Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line.

(b) Graph the locus of points for which the MRS of good 2 for good 1 is equal to 1, and the locus of points for which the MRS is equal to 2.


Related Discussions:- Budget constraint

Concept of amximization and assumptions associated the econo, PREPARE AN ES...

PREPARE AN ESSAY ON THE CONCEPT OF MAXIMIZATION AND THE ASSUMPTIONS ASSOCIATED WITH THE BEHAVIOR OF THE ECONOMIC MAN

What is consumer price index, What is Consumer Price Index CPI is a pri...

What is Consumer Price Index CPI is a price index of a specific basket known as the CPI-basket. CPI-basket contains essentially all the service and goods consumed in a country

Climate and terrain in several south american countries, Climate and terrai...

Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee, they are not as efficient and effective

Credit creation, Deposit K4000, liquid asset k1000, loans K4000. what is cu...

Deposit K4000, liquid asset k1000, loans K4000. what is current liquid asset?

The world economy , The financial crisis that hit the United States first a...

The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some

OPEN ECONOMY, EXPLAIN THE 5 SECTOR MODEL (OPEN ECONOMY) IN INCOME DETERMINA...

EXPLAIN THE 5 SECTOR MODEL (OPEN ECONOMY) IN INCOME DETERMINATION

State the both -cyclical and classical unemployment, State the both -Cyclic...

State the both -Cyclical and Classical unemployment Cyclical unemployment Unemployment because of a recession. Classical unemployment Unemployment because of

Principle of acceleration, importance and limitation of principle of accele...

importance and limitation of principle of acceleration

After your last deposit withdraw immediately, You make a monthly deposit of...

You make a monthly deposit of $1,000 into a saving account for the next 10 years. How much can you withdraw immediately after your last deposit if your saving account pays 6% per y

Write Your Message!

Captcha
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