Tracy has utility given by ufh fh2 last week tracy had an, Ask an Expert

Economics

Tracy has utility given by U(F,H) = FH^2. Last week Tracy had an income of 6 and the price of food was 1, the price of housing was 1. This week Tracy has income of 12, the price of food is 1/2 and the price of housing is 4.

a. Sketch the indifference curve U=32 for Traxy's utility function.

b. Find Tracy's optimal it condition for each week.

c. Find Tracy's utility maximizing choice of food and housing each week.

d. Is Tracy better off or worse off this week?

e. Add Tracy's week 1 and 2 budget constraints to your sketch from part a.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91521391

Have any Question?Write your Review or question?

Related Questions in Business Economics

Here is some questions need helphow will each of the

Here is some questions need help How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in the given market; that is, do price and quantity increase or decrease, ...

Asset management ratios corn products corp ended the year

Asset Management Ratios Corn Products, Corp. ended the year 2008 with an average collection period of 32 days. The firm's credit sales for 2008 were $10.7 million. What is the year-end 2008 balance in accounts receivable ...

What does the term the ten principles of economics and how

What does the term the Ten Principles of Economics and how it's applied to the consumer buying trends?

The probability that a regular scheduled flight departs on

The probability that a regular scheduled flight departs on time is .83; the probability that it arrives on time is .82; and the probability that it departs and arrives on time is .78. Find the probabilty that a plane arr ...

What are the pros and cons of developing a global set of

What are the pros and cons of developing a global set of rules governing MNC (MNE) investment?

A very skilled court stenographer makes two typographical

A very skilled court stenographer makes two typographical errors (typo) per hour, on average. 1. What probability distribution is most appropriate for calculating the probability of a given number of typos being made by ...

Why are ideas of modernization cohn 107 and progress so

Why are ideas of "modernization" (cohn, 107) and "progress" so important to the post-World War II.

Suppose that for a given patient the true ef is 63 consider

Suppose that, for a given patient, the true EF is 63. Consider the population of EF values that can be estimated on that patient using option II above. That population follows a normal distribution with μ= 63. Find the p ...

A test of high school study habits and attitudes supposedly

A test of high school study habits and attitudes, supposedly predictive of how well high school students will perform academically, is administered to twelfth graders during the same week that their cumulative grade poin ...

Consider the following estimated regression model relating

Consider the following estimated regression model relating annual salary to years of education and work experience. Estimated Salary=11,756.80+2723.3(Education)+1092.64(Experience) Suppose an employee with 11 years of ed ...

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

Recent Questions

Ask Business Economics Expert