Suppose there are 90 consumers in the market withtwo goods x and y. There are two types of individualsA and B. 60 of the consumers are type A and the 30of them are type B. Type A consumers have a utilityfunction of u(x, y) = x¹/³y¹/³ and each of themhas an income of mд. Type B consumers have autility function of u(x, y) = x²/³y¹/³ and each ofthem has an income of mp.1. Find the individual demand for type A for good xand y as a function of mA, P, and py.2. Find the individual demand for type B for good xand y as a function of m³, px, and py.3. Find the market demand for good as a functionof incomes and prices.4. Find the market demand for good y as a functionof incomes and prices.-5. Suppose price of good x is 2 and the price good yis 2. Further suppose mA = 60 and m³ = 120.Find the market demand for good x and good y atthe given prices and incomes.

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Suppose there are 90 consumers in the market with two goods x and y. There are two types of individuals A and B. 60 of the consumers are type A and the 30 of them are type B. Type A consumers have a utility function of u(x, y) = x¹/³y¹/³ and each of them has an income of mд. Type B consumers have a utility function of u(x, y) = x²/³y¹/³ and each of 1/3 them has an income of mp. 1. Find the individual demand for type A for good x and y as a function of mA, Px, and Py. 2. Find the individual demand for type B for good x and y as a function of mB, Px, and py. 3. Find the market demand for good x as a function of incomes and prices. 4. Find the market demand for good y as a function of incomes and prices. 5. Suppose price of good x is 2 and the price good y is 2. Further suppose mд = 60 and m² = 120. Find the market demand for good x and good y at the given prices and incomes.

Suppose there are 90 consumers in the market with two goods x and y. There are two types of individuals A and B. 60 of the consumers are type A and the 30 of them are type B. Type A consumers have a utility function of u(x, y) = x¹/³y¹/³ and each of them has an income of mд. Type B consumers have a utility function of u(x, y) = x²/³y¹/³ and each of 1/3 them has an income of mp. 1. Find the individual demand for type A for good x and y as a function of mA, Px, and Py. 2. Find the individual demand for type B for good x and y as a function of mB, Px, and py. 3. Find the market demand for good x as a function of incomes and prices. 4. Find the market demand for good y as a function of incomes and prices. 5. Suppose price of good x is 2 and the price good y is 2. Further suppose mд = 60 and m² = 120. Find the market demand for good x and good y at the given prices and incomes.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.12P

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