Graph gary''s demand function for candy

Reference no: EM13852873

1. Gary the Ghost has the following utility function

U(C,S)=C×S,

where C is the amount of candy Gary has and S is the number of bed sheets.

a) Graph Gary's demand function for candy given that PS =5 and his income is 20. Thegraph should have demand on the vertical axis and PC on the horizontal axis.b) If PC =1, what utility does Gary achieve?c) Using the utility derived in part (b) and PS=5, graph the friendly ghost's compensated

demand function on the same plot as part (a).d) Explain why the compensated demand function is less steep (the slope is lessnegative) than the demand function you found in part (a).2. Travis the Turkey is preparing for the turkey trot hosted by UCLA Triathlon onNovember 20th. While training, Travis regains strength from consuming protein shakes(S) and energy bars (B). His utility is given by

U(S,B)=ln(2S)+B.a) Are the two goods gross complements or gross substitutes? Does your answer change

depending on which good you consider? (Hint: check both goods)b) Are the two goods net complements or net substitutes?c) What is the demand for S and B given that PS=2, PB=4, and I=34? If we increaseTravis's turkey trot fund (I), how does he spend this extra money? Given his utilityfunction, explain this behavior.

Reference no: EM13852873

Questions Cloud

What are marketable permits : A rancher and a farmer are located next to each other. Here are the facts of their situation: There is no fence between the ranch and the farm The cattle enter the farmer's fields and destroy $300 worth of corn each year.

Calculate his demand for each good : Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..

How many rackets will she consume : Derek consumes only rackets and tennis balls. His utility function is U(x,y)=x^2y^8, where x is the number of rackets consumed and y is the number of tennis balls consumed. Derek's income is $320, and the prices of rackets and tennis balls are $4 and..

What is the cournot-nash equilibrium : The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce wid- gets. Each firm has a constant marginal and average cost of producing the good that equals 10. What is the Cournot-Nash equilibrium? You need to solve ..

Graph gary''s demand function for candy : a) Graph Gary's demand function for candy given that PS =5 and his income is 20. Thegraph should have demand on the vertical axis and PC on the horizontal axis.b) If PC =1, what utility does Gary achieve?c) Using the utility derived in part (b) and P..

Consumption in order to increase her total utility : Tom consumes positive quantities of both jam and juice. the price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 55. Without changing her total expenditur..

Budget line and highest attainable indifference curve : Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. (Plays and movies are perfect substitutes with 1 to 3 ratio.) Draw her indifference curves. If plays tickets cost..

What is the optimal two-part price : Suppose that VerizonWireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individuals' inverse demand for wireless services in the greater Boston area is estimated to be P = 100 - 33Q and t..

Creating a measurable marketing and advertising strategy : In your simulation this week, one item that you will be working on is advertising to include ad copy design, and media placement and ad frequency.

User Account

All Pages