Question
Consumer demand for a product is a function of the price of the product P Q and consumer income m , according to the following
Consumer demand for a product is a function of the price of the productPQand consumer incomem, according to the following function:
DPQ, m= -4(PQ,M)^0.5+10ln(m)
a. Evaluate the function atPQ=4, m=40,000
b. Derive an expression for the total differential of this function.
c. Evaluate the total differential you found in part b ifPQ=9, m=20000, dPQ=0.1, dm=0.4
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Microeconomics
Authors: Jeffrey M. Perloff
8th edition
134519531, 978-0134519531
