{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-21T05:08:32-04:00", "answer_date": "2024-06-21 05:08:32", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "3403654", "url": "\/study-help\/questions\/a-consumer-has-preferences-summarized-by-the-utility-function-uqx-3403654", "question_creation_date_js": "2024-06-21T05:08:32-04:00", "question_creation_date": "Jun 21, 2024 05:08 AM", "meta_title": "[Solved] A consumer has preferences summarized by | SolutionInn", "meta_description": "Answer of - A consumer has preferences summarized by the utility function U(qX, qY ) = [q ? X + q ? Y ] 1\/? . a. [5 points] To sta | SolutionInn", "meta_keywords": "consumer,preferences,summarized,utility,function,qx,qy,x,+,y,1\/,5", "question_title_h1": "A consumer has preferences summarized by the utility function U(qX, qY ) = [q ? X + q ? Y ] 1\/? . a. [5", "question_title": "A consumer has preferences summarized by the utility function U(qX, qY )", "question_title_for_js_snippet": "A consumer has preferences summarized by the utility function U(qX, qY ) q X q Y 1 a 5 points To start with let 0 5, write down the Lagrangian of the UMP and derive the First Order Conditions find the expression of the consumer's Marginal Rate of Substitution at a generic bundle (qX, qY ) b 5 points Derive the Walrasian demand and indirect utility functions for this utility function c 5 points Derive the compensated Hicksian demand functions Are these two goods substitutes Explain d 10 points Suppose the wealth is 10, the price of X is equal to 1 and the price of Y is equal to 2 Imagine that the price of X increases to 2 Derive the substitution and income effect using the Slutsky method and the Hicksian method A consumer has preferences summarized by the utility function U (9 , (1y) q qf, 1 9 a 5 points To start with let p 0 5, write down the Lagrangian of the UMP and derive the First Order Conditions nd the expression of the consumer's Marginal Rate of Substitution at a generic bundle (ex (13 ) b 5 points Derive the Walrasian demand and indirect utility functions for this utility function c 5 points Derive the compensated Hicksian demand functions Are these two goods substitutes Explain d 10 points Suppose the wealth is 10, the price of X is equal to 1 and the price of Y is equal to 2 Imagine that the price of X increases to 2 Derive the substitution and income effect using the Slutsky method and the Hicksian method", "question_description": "
A consumer has preferences summarized by the utility function U(qX, qY ) = [q ? X + q ? Y ] 1\/? . a. [5 points] To start with let ? = 0.5, write down the Lagrangian of the UMP and derive the First Order Conditions. find the expression of the consumer's Marginal Rate of Substitution at a generic bundle (qX, qY ). b. [5 points] Derive the Walrasian demand and indirect utility functions for this utility function. c. [5 points] Derive the compensated Hicksian demand functions. Are these two goods substitutes? Explain. d. [10 points] Suppose the wealth is 10, the price of X is equal to 1 and the price of Y is equal to 2. Imagine that the price of X increases to 2. Derive the substitution and income effect using the Slutsky method and the Hicksian method.<\/p>