Budget constraint, Macroeconomics

Assignment Help:

The consumer's utility function is u(x1,x2) = (x1) (x2)^2

(a) Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line.

(b) Graph the locus of points for which the MRS of good 2 for good 1 is equal to 1, and the locus of points for which the MRS is equal to 2.


Related Discussions:- Budget constraint

Market structures, illustrate and discuss the market structures competitive...

illustrate and discuss the market structures competitiveand non competitive for price determination

Budget, what are the function of budget

what are the function of budget

Country club bills, Suppose the country club bills based on a sample of 4 m...

Suppose the country club bills based on a sample of 4 members are: 358, 958, 665, 846. What is the standard deviation for this sample of bills? (please round your answer to 1 decim

Why the group is considered powerful, Evaluate your workplace and identify ...

Evaluate your workplace and identify a group that has "power" in the organization. Analyze why the group is considered powerful. a. What are the elements that contribute to the gro

Gkx industries expects sales of its hydraulic seals, GKX Industries expects...

GKX Industries expects sales of its hydraulic seals (in inch and metric sizes) to increase according to the cash flow sequence $70+4k, where k is in years and cash flow is in $1000

Protectionism and free trade, why is international trade important for sout...

why is international trade important for south Africa

Fiscal, what is the supply side

what is the supply side

Demand for green and chai tea, Given the data in the table below, provide a...

Given the data in the table below, provide an estimate of the arc price elasticity of demand for green and chai tea. Chai tea Price $/lb. 10.4, 10.5 Chai tea Quantity mil lbs. 75

Difference among federal income tax and a federal sales, How could utility ...

How could utility theory help us understand the difference between a federal income tax and a federal sales tax on consumer consumption patterns?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd