solve, Microeconomics

Assignment Help:
1. Suppose that Mr. John has the following Cobb-Douglas utility function
U = 6X^2/3y^1/3
the market price of X and Y commodity are $1 and $2, respectively. If Mr. John''s total income is $90, then answer the following questions:
i. write down the budget line equation
ii. Find the utility maximizing equilibrium quantity of X and Y commodities.
iii. Compute the maximum utility derived from the above equilibrium quantities
iv. Show the equilibrium condition graphically.
v. Compute the income share of commodity X and Y.

Related Discussions:- solve

Milk, The price of milk is usually much less expensive in a grocery store v...

The price of milk is usually much less expensive in a grocery store versus a convenience store. Using economic terminology, explain why people purchase milk at convenience stores.

Policies of educational financing - earmarking, Policies of Educational Fin...

Policies of Educational Financing - Earmarking Earmarking refers to setting aside and using the funds generated by a special cess/tax for the particular purpose for which it i

What are possible negative consequences of economic growth, What are the po...

What are the possible negative consequences of economic growth in a developing country? Define economic growth as an enhance in GDP during a given time period, and then define

Introduction, b) Sally’s firm produces granola bars with a fixed cost of 10...

b) Sally’s firm produces granola bars with a fixed cost of 10 (this cost is already sunk). Her variable cost function is VC = q2 + 2q. Assuming the market for granola bars is comp

Long term microeconomics, Igora''s pizzeria want to know if it should stay ...

Igora''s pizzeria want to know if it should stay open this spring. Total Revenue will be $ 12,000 per week and Total Cost will be $ 18,000 per week. The fixed cost of running the b

Physical science, What is the formula for heat and how do you solve it?

What is the formula for heat and how do you solve it?

What are the three basic economic questions, What are the "three basic econ...

What are the "three basic economic questions" that economists often address when examining how much economic output is formed? The three basic questions are: a) what is prod

Capital intensive operations, Where minimum efficient scale is very huge fo...

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of

Competitive short run supply curve of firm and industry, A Competitive Shor...

A Competitive Short Run Supply Curve of Firm * Observations: - P = MR - MR = MC - P = MC * Supply is amount of output for every possible price.  Thus: -  If

Government budget deficits, Government Budget Deficits Governments have...

Government Budget Deficits Governments have been traditionally spending more what they could earn by way of taxes and sale of economic goods and services produced by them. The

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