Show that the two utility functions given below generate identical demand functions for goods X and Y:

Question:

Show that the two utility functions given below generate identical demand functions for goods X and Y:
a) U(X, Y) = log(X) + log(Y)
b) U(X, Y) = (XY) 0.5

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

See More Books

Question Posted: Dec 22, 2015 02:18 AM

See More Questions

Suppose a consumer's preferences for goods X and Y can be described by the utility function U(X, Y) = (AXR + BYR)1/R, where A and B are positive numbers and R is a number that can be either positive...
The following table shows the marginal-utility schedules for goods X and Y for a hypothetical consumer. The price of good X is $1 and the price of good Y is $2. The income of the consumer is $9.R-2...
Suppose that a consumer has utility given by U(X, Y) = XY + 10Y and income of $100 to spend on goods X and Y. a. The prices of X and Y are both $1 per unit. Use a Lagrangian to solve for the optimal...
A triangular truss structure is shown below. If all truss members are 2.0 m long (a, b, & c in the sketch) and forces L and Rare both 8.0 kN, then what is the force in truss member a? Assume that the...
Belda Co. makes organic juice in two departments: cutting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The...
The rotational absorption spectrum of a molecule displays peaks about 8.9 1011 Hz. apart. Determine the moment of inertia of this molecule.
Use the all-possible-regressions method to select a subset regression model for the Belle Ayr liquefaction data in Table B.5. Evaluate the subset models using the $C_{p}$ criterion. Justify your...
On March 1, 2014, Quinto Mining Inc. issued a $600,000, 8%, three-year bond. Interest is payable semi-annually beginning September 1, 2014. Required Part 1 a. Calculate the bond issue price assuming...
An access matrix consists of 3 domains and 4 objects. 01 02 03 04 D1 OW orx orwc X D2 D3 rx rcw rcwcxc rcx rcx orw A process in domain D can grant a right R (r, w, or x) for object O to another...
The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: (a) Wages accrued but not...
Which of the following utility functions are consistent with convex indifference curves and which are not? a) U(X, Y) = 2X + 5Y b) U(X, Y) = (XY) 0.5 c) U(X, Y) = Min(X, Y), where Min is the minimum...
Assume that a utility function is given by Min(X, Y), as in Exercise 1(c). What is the Slutsky equation that decomposes the change in the demand for X in response to a change in its price? What is...
Valli Ltd.s financial statements as at December 31, 2021, appear below: Supplemental information: During the year, Valli exchanged 5,000 ordinary shares for plant assets having a fair value of...
ICANN Domain Name Dispute Resolution Policies. Next, outline the requirements for a successful complaint for canceling or transferring a domain name under the ICANN policies. Next, please consider...
A suggested approach for effective presentation of a policy analysis report is to include highlights as: ( ) value judgement embodied in the cost-benefit technique ( ) value in the cost-benefit...
Workplace stress is a serious concern for many employers and employees. What are the significant causes of workplace stress and how can employers help employees get a stress-free environment at their...
Can you describe any bargaining situation you found yourself in that didn't end up in your favor? Can you explain why you think you ended up loosing the negotiation? If you were to prepare to face a...
What evaluation criteria should be employed when considering new suppliers or evaluating current suppliers?
Find the standard deviation for the indicated sets of numbers. A calculator may be used. The salaries in Exercise 29 of Section 22.2 Data from Exercises 29 of Section 22.2 The weekly salaries (in...
Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
Can you elucidate the principles underlying genome organization and chromatin structure, including the roles of topologically associating domains (TADs) and chromosomal territories in gene regulation...
State three ways of using artificial intelligence and machine learning in marketing and explain each use case with two examples.
discuss the principles of population genetics, including allele frequency distributions, Hardy-Weinberg equilibrium, genetic drift, and natural selection, and how these concepts inform our...

Show that the two utility functions given below generate identical demand functions for goods X and Y:

Question:

Step by Step Answer:

If two utility functions are equivalent then the demand functions derived from them are identical Two utility functions are equivalent if you can tran...View the full answer

Microeconomics

Students also viewed these Economics questions