Adam duritz utility function between cd''s (c) and hard

Adam duritz utility function between cd''s (c) and hard candy

Reference no: EM13766795

7. Given the Adam Duritz utility function between CD's (C) and hard candy (H) is ,
a. Sketch Adam's indifference curve for U=5, U=10 and U=20.
b. Suppose Adam has $100 to spend and that CDs cost $2.50 and hard candy cost $10. Draw Adam's budget constraint on the same graph as his indifference curves.
c. Suppose Adam spends all his money on hard candy. How many can he buy and what is his utility?
d. If Adam buys 5 hard candies, how many CDs can be buy? What is his utility?
e. What is the optimal amount of CD's and hard candy when Adam has $100, $200, and $500?
f. What is the optimal amount of CD's and hard candy when the price of CDs increases to $5 and the price of hard candy remains unchanged at $10 for Adam when his income is $100, $200, and $500?

Reference no: EM13766795

Questions Cloud

Characteristic of the price of stock : Which is a characteristic of the price of stock?

Price elasticity remains constant along the demand curve : Suppose that 50 units of a good are demanded at a price of $1 per unit. A reduction in price to $.20 results in an increase in quantity demanded to 70 units. Show that these data yield a price elasticity of .25. By what percentage would a 10 percent ..

Relationship between a bonds price and the yield to maturity : The relationship between a bond's price and the yield to maturity (rate)

Semi-annual analysis-what is the market value of the bond : A ten-year bond, with par value equals $1000, pays 5% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.

Adam duritz utility function between cd''s (c) and hard candy : 7. Given the Adam Duritz utility function between CD's (C) and hard candy (H) is , a. Sketch Adam's indifference curve for U=5, U=10 and U=20.b. Suppose Adam has $100 to spend and that CDs cost $2.50 and hard candy cost $10. Draw Adam's budget constr..

What is the market value of the bond : A 20-year bond pays 6% on a face value of $1,000. If similar bonds are currently yielding 4.5%, what is the market value of the bond? Use annual analysis

The united states economy is represented by : 1. Suppose the United States economy is represented by the following equations: Z = C + I + G C = 500 + .5YD T = 600 I = 300YD = Y - T G = 2000

The winter city ski resort caters to both out-of-town : 1. The Winter City Ski Resort caters to both out-of-town skiers and local skiers. The demandfor ski tickets for each market segment is independent of the other market segment. Themarginal cost of servicing a skier of either type is $10. Suppose the d..

Bond valuation-longer-term bonds price : An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 8% annual coupon. Bond L matures in 19 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturit..

User Account

All Pages