Question: Alice has the utility function u(x1, x2) = 2x^ (1/3) y^ (1/2), where x 0 and y 0 are the amounts of the two goods

Alice has the utility function u(x1, x2) = 2x^ (1/3) y^ (1/2), where x 0 and y 0 are the amounts of the two goods that she consumes

Bundle A = (75,50)

Find a consumption bundle B that contains more than 75 of good 1 such that Alice is indifferent between bundles A and B.

Solve and please provide proof

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Alice has the utility function u(x1, x2) = 2x^ (1/3) y^ (1/2), where x 0 and y 0 are the amounts of the two goods that she consumes Bundle A = (75,50) Graph bundle A Then Use mathematical notation to...

Q:

2 a) Given utility function U (C; R) = min (C; 2R); daily endowment of time 24h, price and wage pc= w = 1; nd optimal choice of C; relaxation time R and labor supply L. (three numbers, use secrets of...

Q:

2 a) Given utility function U (C; R) = min (C; 2R); daily endowment of time 24h, price and wage pc= w = 1; nd optimal choice of C; relaxation time R and labor supply L. (three numbers, use secrets of...

Q:

George Costanza, a typical New Yorker, works for Kruger Industrial Smoothing. His favorite snack food is a knish ( X 1 ) , a popular New York City treat. He particularly enjoys the knishes sold at...

Q:

George Costanza, a typical New Yorker, works for Kruger Industrial Smoothing. His favorite snack food is a knish ( X 1 ) , a popular New York City treat. He particularly enjoys the knishes sold at...

Q:

8. Consider an Edgeworth economy such that every trader has the initial endowment (1, 1). Ev- ery A-trader has the utility function u (x1, x2) = max{x1, x2). Every B-trader has the utility function...

Q:

1. Alex lives in city A and consumes two goods, 1 and 2, with the following utility function, u (x1, X2) = Ax1 2 , where A > 0 is a constant. The goods prices are p, and p2. Alex works h hours and...

Q:

All the questions Exercise #1. A firm produces output using the technology y = 7 1.000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the yearly...

Q:

Aswer all ques Application Case 3.7 Dallas Cowboys Score Big with Tableau and Teknion Founded in 1960, the Dallas Cowboys are a professional American football team headquartered in Irving, Texas. The...

Q:

Need help with budget constraints, optimal bundles in the below exps of microeconomics. already calculated 1st two but want to understand rest. The questionsv are ordered a,b,c,d,e,f.Thnx Jamal has...

Q:

Solve the Following: Let F[x(t)] = X(w). Find the Fourier Transform of: (a) m(t)= x(t) cos(wt+0) (b) m(t)= x(t)sin (@t+0)

Q:

Refer to information about Carter Corporation in the preceding problem. a. What was the change in accounts receivable during 2012? b. Inventories increased by $624.1 during 2012. What was the change...

Q:

Sylvestor Systems borrows \ ( \ $ 1 6 3 , 0 0 0 \ ) cash on May 1 5 by signing a 9 0 - day. 7 \ % , \ $ 1 6 3 , 0 0 0 note. 1 . On what date does this note mature? 2 - a . Prepare the entry to record...

Q:

What are the important elements of "Communicator Credibility" and why should you pay attention to them? Presentations or Public speaking is often associated with fear and anxiety. What can be done to...

Q:

3. What is happening here and now (1 is oriented towards the proactive, 2 towards the reactive and 3 is a balance between the two). c. Source of inspiration: When I communicate it is important for me...

Q:

1. What will happen in the future

Q:

3. Avoid making mistakes when reaching our goals