Question: Assuming the following utility function u = min {X1,2 X2} when P1 = 8; P2 = 4; m = 200, determine the quantity demanded of

Assuming the following utility function u = min {X1,2 X2} when P1 = 8; P2 = 4; m = 200, determine the quantity demanded of both goods.

Consequently, the two restrictions that must be met are:

X1 = 2X2

8X1 + 4X2 = 200

but since I get the result of X1 AND X2, I know that it gives as a result X1 = 20; X2 = 10., but I don't know how to get to it

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 Finance Questions!

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:

statistics and probability 3 Problem 1 (40p) (Well-behaved preferences) Lila spends her income on two goods: food, x1; and clothing, x2. a) The price food is p1= 2 and one piece of clothing costs p2=...

Q:

statistics and probability 3 Problem 1 (40p) (Well-behaved preferences) Lila spends her income on two goods: food, x1; and clothing, x2. a) The price food is p1= 2 and one piece of clothing costs p2=...

Q:

man2 Exercise #1. Annas preferences over consumption bundles (x1,x2) are summarized by the utility function U (x1,x2) = x1 (x2 + 1)2. (a) Derive an algebraic expression for the marginal utility MU1...

Q:

This is my assignment The questions in this problem refer to the following game: Player 2 a. Determine if either player has any dominated strategies. If so. identify them. b. Does either player have...

Q:

1Answer the following parts.. Human lCapital Model: Fieinterpretthe human capital growth model as follows: Suppose there are two groups of people in a country, the lowskilled and the highskilled,...

Q:

Please show work and answer all parts of the questions. Thank you so much. 01 Question (2 points) e See page 253 V 1st attempt Part 1 (1 pt) See Hint Justin's inverse demand for a good is given by p...

Q:

Question4 11 Marks (0.5, 0.5, 2, 5, 3) A consumer has the following utility function U (X1. X2) = X1(X2 + 4} Prices of the two goods X1 and X2 respectiver are p1 and p2 and the consumer has income m....

Q:

Question 4 11 Marks {0.5, 0.5, 2. 5. 3) A consumer has the following utility function U (x1. x2) = x1{x2+ 4) Prices of the two goods X1 and x2 respectively are p. and p2 and the consumer has income...

Q:

Laura sold her restaurant in June 2020 for 1,000,000, having agreed the following valuations with the buyer Value Original cost Premises 500,000 260,000 Production Equipment 90,000 170,000 Net...

Q:

For genetic reasons, color blindness is more common in men than women: 5 in 100 men and 25 in 10,000 women suffer from color blindness. a. Define events, and identify in words these proportions as...

Q:

By age 72, employees must begin withdrawing funds from their 401(k) plans. This is known as a ________________. Group of answer choices early withdrawal. non-qualified early withdrawal....

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...