On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y
Question:
On the planet Homogenia every consumer who has ever lived consumes only two goods,xandy, and has the utility functionU(x,y)=xy. The currency in Homogenia is the fragel. In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels. Per capita income was 108 fragelsin 1990. In 2000, the price of good 1 was 3 fragels and the price of good 2 was 4fragelsand per capita income increased to 120
a. The quantity of x that's consumed in 1990 and 2000 are:andrespectively
b. The quantity of y that's consumed in 1990 and 2000 are:andrespectively
c.TheLaspeyres quantity indexfor the quantity level in 2000 relative to the price level in 1900 is(rounded to 2 decimals)
d.ThePaaschequantity indexfor the quantity level in 2000 relative to the price level in 1900 is(rounded to 2 decimals)
e.TheLaspeyresprice indexfor the price level in 2000 relative to the price level in 1900 is(rounded to 2 decimals)
f.ThePaascheprice indexfor the price level in 2000 relative to the price level in 1900 is(rounded to 2 decimals)