Question
Maria consumes only goods X and Y. Her utility function is (, Y) = 100 - (X 2 /2)+ Y where Y is the money
Maria consumes only goods X and Y. Her utility function is (, Y) = 100 - (X2/2)+ Y where Y is the money he spends on all other goods except X. A) What form is Maria's utility function? B) What is the inverse demand function for X? C) If the price for X is $ 50, how much will X consume? D) If the price for X is $ 80, how much will X consume? E) If her income is $ 4,000 per month, what is the total utility of the excellent choice X and Y if the price of X is $ 50? F) If her income is $ 4,000 per month, what is the total utility of the excellent choice X and Y if the price of X is $ 80? G) How much is the utility reduced when the price increases from $ 50 to $ 80
H) How much is the change in net consumer surplus when the price increases from $ 50 to $ 80?
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