Question: Now, forget about the parameters so far. Assume instead that potato market is characterized by 4000 identical consumers, each with the utility function U(x, y)=

Now, forget about the parameters so far. Assume instead that potato

Now, forget about the parameters so far. Assume instead that potato market is characterized by 4000 identical consumers, each with the utility function U(x, y)= 10*sqrt(x)+y, where x stands for potato and y represents the composite good (for which price is equal to 1 by definition). (Also assume that they have sufficiently high income so that you can focus on the interior solution and can neglect potential corner solution cases of this type of utility function.)

Derive the market demand curve and answer the following question: what would be the market demand for potato if potato price were equal to 37?

market is characterized by 4000 identical consumers, each with the utility function

Now, forget about the parameters so far. Assume instead that potato market is characterized by 4000 identical consumers, each with the utility function U(;t:, y) = 10 :1: + y, where x stands for potato and y represents the composite good (for which price is equal to 1 by definition). (Also assume that they have sufciently high income so that you can focus on the interior solution and can neglect potential corner solution cases of this type of utility function.) Derive the market demand curve and answer the following question: what would be the market demand for potato if potato price were equal to 37? Round your answer to two decimal places! Use dot (J as decimal separator

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