Let u(x,y) = 2xy+6x+y. With Px, Py, and I symbolizing general prices and Income. A. Derive the demand function for x and
Posted: Fri Jul 01, 2022 8:13 am
Let u(x,y) = 2xy+6x+y. With Px, Py, and I symbolizing generalprices and Income.
A. Derive the demand function for x and y assuming aninterior solution.
B. Does the x value follow the law of demand?
C. Let I=140. What must be true about px and py so that therewill never be a corner solution with x=0?
D. Using Derivatives determine if good x is a normal good,income neutral, or inferior good.
E. Determine the cross price elasticity of good x inrespect to py.
A. Derive the demand function for x and y assuming aninterior solution.
B. Does the x value follow the law of demand?
C. Let I=140. What must be true about px and py so that therewill never be a corner solution with x=0?
D. Using Derivatives determine if good x is a normal good,income neutral, or inferior good.
E. Determine the cross price elasticity of good x inrespect to py.