Derive the marshallian demand functions

Reference no: EM13177593

A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function:
u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2
Let p1 = p2 = 1 and denote the income m. Derive the Marshallian demand functions for x1 and x2 as a function of m.

Reference no: EM13177593

Questions Cloud

What value should land be recorded in easy repair service : On June 10, Easy Repair Service extended an offer of $95,000 for land that ha been priced for sale at $118, 500.

Plot the point on a polar coordinate system : Consider the polar point P(sqrt2, pi/4)

What is the expenditure function : Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a. Derive the Marshallian demand functions. b. What is the expenditure function? c. What is the direct utility function?

Calculate the amortization of the patent : Calculate the amortization of the patent, copyright, and trademark and prepare general journal entries to record the end-of-year amortizations.

Derive the marshallian demand functions : A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2

What value should the company capitalize the building : At what value should the company capitalize the building and would your answer change if the bid from the outside contractor had been $80,000? $60,000?

Find for what values of p1/p2 will the optimum : A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = min {2x1 + x2; x1 + 2x2}

Compute the amount of interest costs capitalized each year : If it is assumed that the production complex has an estimated life of 20 years and a residual value of zero, compute the straight-line depreciation in 2010.

How to find the sum of each series : how to find the sum of each series?

User Account

All Pages