Question
N want buy q1 and work. Paid 1000 a month for her computer skills. He internet service sells access to1T for40 pI=40 bags potatoes 10each.
N want buy q1 and work. Paid 1000 a month for her computer skills. He internet service sells access to1T for40 pI=40 bags potatoes 10each. Pp10 utility. U(ql,qp ) = 9*sqrt(ql) + 6*sqrt(qp)
A would N ever want to consume 0unit of internet service or potato assuming Y>0 pi>0. Pp>0
B
Find N Hicksian demand for internet service and potatoes. What is expenditures function
C
Her optimal bundle of good based on Marshallian demand is (qI*,qp*}=(9,64). Y=1000. Pi=40. Pp=10
D
N move to Seattle. WA by her company internet service is. PI=51. Price of. Potato is pp =19. What is the value of compensating variation? Given by her original income was Y=1000
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