Calculate my optimal consumption of roses

Assignment Help Microeconomics

Reference no: EM13671373

Suppose that my tastes for roses (x) and other goods (y) can be represented by the utility function u(x, y) = βxα + y , where MUx = αβxα-1 and MUy = 1. Roses cost $5 each and my income is $125 per week. Assume that py is by definition equal to 1, and α = 0.5 , β = 50.
a. Calculate my optimal consumption of roses and other goods as a function of px and M.
b. Calculate my optimal consumption of roses for income of $125 and when my income increases to $500 per week.

Reference no: EM13671373

Questions Cloud

What are the particular concerns for gloria : What are the particular concerns for Gloria

Determine how many units of each product to produce : Determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unit of frame parts and 2 units of electrical components are required.

How can the federal government fund the deficit : How can the Federal government fund the deficit?

The econ6351 company was considering a price increase : The ECON6351 company was considering a price increase

Calculate my optimal consumption of roses : Calculate my optimal consumption of roses and other goods as a function of px and M.

None of the heat is lost to the surrounding : The heat of combustion of propane is 2220 kj/ mol. the specific heat of copper is 0.385 j/g *c. how many grams of propane must be burned to raise the temperature of a 10.0kg block of copper from 25.0 c to 65.0c, assuming that none of the heat i..

Rules for rounding off the results of calculations : What are the rules for rounding off the results of calculations

Calculate the volume of liquid pure sulfuric acid : Calculate the volume (in mL) of liquid pure sulfuric acid

What mass of carbon dioxide would be produced : What mass of carbon dioxide would be produced?

User Account

All Pages