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Derive the Hicksian demand and the expenditure function for u(x,y)=(.4X^.5+.6Y^.5)^2
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- The demand equation for a particular candy bar is px + x + 20p = 3000 where 1000x candy bars are demanded per week when p cents is the price per bar. If the current price of the candy is 49 cents per bar and the price per bar is increasing at the rate of 0.2 cents each week, find the rate of change in the demand.The demand equation for a particular candy bar is px + x + 20p = 3000 where 1000x candy bars are demanded per week when p dollars is the price per bar. If the current price of the candy is 49 dollars per bar and the price per bar is increasing at the rate of 0.2 dollars each week, find the rate of change in the demand.Derive the expenditure function for the consumer and the hickson demand function
- Alonso has preferences for sport cars (C) and paella (P) given by the utility function U(C, P) = 4CP. The prices for C and P are, respectively, pc and pp. In what follows, do not worry if the results are not integers.Suppose you have the following indirect utility function: V(Pa, Py, I) = In PxPy What are marshallian demands for x and y? I (a) (9x9y) = (22) (b) (9,9y) = (In, In 2) (c) (9, 9y) = (exp(2p/py), exp(2ppy)) I (d) (9x, gy) = (2pr+py' px+2py) What is the expenditure function for the associated expenditure minimization problem? (a) E(pa, Py, U) = (P + Py) ln(U) (b) E(pa, Py, U) = √exp(U)Papy (c) E(pa, Py, U)= (p²+p²) In(U) (d) E(pa, Py, U) = exp(U)²papy What are the individual's Hicksian demands for goods x and y? (a) (h₂, hy) = ((BU)¹/², (PU) ¹/²) (b) (ha, hy) = (RU, DU) (c) (ha, hy) = ((2 exp(U))¹/², (exp(U))¹/²) -1/2 (d) (hx, hy) = ((P₂PzU)−¹/², (P₂PzU)-¹/2) Are x and y complements or substitutes?Bread demand function: Q = 100 + 0,5 1 - 30P1+ 20P2, where Q is the annual value of demand; I is income; P1 is the price of bread; P2 is the price of pasta. Define : 1) the function of the annual demand for bread with an income of 10 thousand rubles per month and the price of pasta 250 rubles per 1 kg; 2) the price at which the demand for bread will be zero. Construct the demand curve for bread.
- The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What direction should the apple producers move the price if they wanted to maximize their revenue? a. There is not enough information. b. Don't change the price. c. Cut the price. d. Raise the price.Elasticity of demand has an effective role in the decisions of business firms. Moreover, Government rules and regulations also get affected by the change in prices of these businesses. The elasticity demand concept effectively influences devaluation and depreciation of acurrency on the export earnings of the country. It is of utmost importance that the business firms take elasticity of demand into consideration. With the increase in the elasticity of demand, the consumption behavior of the consumers alsoThe demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) Q. How much will the demanded quantity change if the price of apples increases to 1.5? a. It will decrease by 0.4 million kilos. b. It will decrease by 0.5 million kilos. c. It will increase by 2 million kilos. d. It will increase by 0.5 million kilos. e. All the other answers are wrong.
- The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What is the income elasticity of demand, and what type of product apple is based on this information? a. 9/2, normal b. 2/9, necessity c. -9/5, inelastic d. -1/9, inferior. e. All the other answers are wrong.The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What is the demanded quantity for apple now, based on this equation? a. 3 million kilos b. 6 million kilos c. 9 million kilos d. 12 million kilos e. All the other answers are wrong.The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What is the own price elasticity of demand and what kind of product apple is? a. -1/9, inelastic. b. 1/9, inelastic. c. -2, inelastic. d. -0.5, elastic. e. All the other answers are wrong.