Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Question:

a) Johnny consumes peanuts (x1) and a composite good (x2). His utility function is U = x1x2. His marginal utilities are MU1 = x2and MU2 = x1. Johnny's budget is $20 and the price of the composite good is $1. Derive Johnny's demand function for peanuts.

b) Ambrose consumes peanuts (x1) and a composite good (x2).He has a utility functionU = 4 x1 + x2. This means his MU1 = 2/√x1and his MU2 = 1 . The price of the composite good is p2 = 1. His budget is $20 per month. Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

Additional Information:

The question is belongs to economics and it is derive Johnny and Ambrose's demand function for peanuts and how does Ambrose's demand function for peanuts compare with Johnny's demand curve for peanuts?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91396786
  • Price:- $40

Guranteed 36 Hours Delivery, In Price:- $40

Have any Question?


Related Questions in Microeconomics

Question you are a leading business executive for the

Question: You are a leading business executive for the following type of company: (A) Pharmaceutical manufacturer, (B) Airline, (C) Computer disc drives, (D) Mortgage broker, (E) Management consultant, (F) Department sto ...

Question the demand for imported honda automobiles is given

Question: The demand for imported Honda automobiles is given by the following equation: Q H  = 1200 - 20P H  + 10P C  + 200P G The price of Hondas, P H    = 60, the price of Chevrolets, P C  = 70, and the price of gasoli ...

Question if the nominal annual interest rate is 12

Question: If the nominal annual interest rate is 12% compounded monthly, what is the effective annual interest rate? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow th ...

Question explain why the accumulation of external debt is a

Question: Explain why the accumulation of external debt is a common phenomenon for developing countries and spiraled in the 1980s. What role did commercial banks played? The response must be typed, single spaced, must be ...

Question every week the federal reserve announces how

Question: Every week the Federal Reserve announces how quickly the money supply grew in the week ending ten days previously. (There is a ten-day delay because it takes that long to assemble data on bank deposits.) Econom ...

Question assume that the velocity of money is constant and

Question: Assume that the velocity of money is constant and real GDP growth is 2.5%. Janet Yellen and the Fed are targeting a 2% inflation rate. What is the target growth rate in the money supply? How much new money need ...

Case 2-3 starnes-brenner machine tool company to bribe or

CASE 2-3: Starnes-Brenner Machine Tool Company: To Bribe or Not to Bribe? The Starnes-Brenner Machine Tool Company of Iowa City, Iowa, has a small one-man sales offi ce headed by Frank Rothe in Latino, a major Latin Amer ...

Question the discussion answers combined must be a minimum

Question: The discussion answers combined must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else. In chapter 5 Froeb discussed ...

Question 1 explain and describe rational business pricing2

Question: 1. Explain and describe rational business pricing. 2. How does differentiating gasoline affect rational business pricing? The response must be typed, single spaced, must be in times new roman font (size 12) and ...

Question debeers the dominant firm in diamond mining and

Question: DeBeers, the dominant firm in diamond mining and wholesale marketing, has until recently been unintegrated into any downstream activities. In the past few years, however, it has opened a handful of its own reta ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved