Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

Suppose the utility function of consumer A is U(x,y)= (xy)^2. the price of good X is P, whereas the price of good Y is 1.

Suppose the utility function of consumer A is U(x,y)= (xy)^2.

the price of good X is P, whereas the price of good Y is 1. the income of consumer A is M.

a) Explain why in equilibrium the marginal rate of substitution of consumer A must be equal to P.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Roger A Arnold

13th Edition

1337617407, 9781337617406

More Books

Students also viewed these Economics questions

Question

★★★★★

A compound B has the formula C8H10. After vigorous oxidation, it yields benzoic acid (structure in Eq. 17.37). What is the structure of B? Eq. 17.37 Cr(VI) vigorous C OH benzoic acid CH CH Cr(VI)...

Answered: 1 week ago

Question

★★★★★

37. Two airplanes are ying in the same direction in adjacent parallel corridors. At time t 0, the rst airplane is 10 km ahead of the second one. Suppose the speed of the rst plane (km/hr) is...

Answered: 1 week ago

Question

★★★★★

What must a person do to apply?

Answered: 1 week ago

Question

★★★★★

At the beginning of 2015, the shareholders equity section of the statement of financial position of Ponti Corporation reflected the following: Common shares, no par value, authorized unlimited number...

Answered: 1 week ago

Question

★★★★★

Which of the following statements is correct regarding the relationship between classes and objects? A An object is a blueprint that creates individual classes. B A class and an object are exactly...

Answered: 1 week ago

Question

★★★★★

Consider a growing annuity that will earn 11% annually and grow at 3% per year. Calculate the adjusted monthly rate

Answered: 1 week ago

Question

★★★★★

Rodriguez Company pays $395,380 for real estate with land, land improvements, and a building. Land is appraised at $157,040; land improvements are appraised at $58,890; and the building is appraised...

Answered: 1 week ago

Question

★★★★★

urgent! urgent please! business law, case study, Amit and Amita were husband and wife and was always quarrelling amongst each other amit promises to pay Rs. 50,000 to Amita as monthly expenses and...

Answered: 1 week ago

Question

★★★★★

Consider the following table for this question. 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 This array was declared with this statement: int colors = new int[4][5]; Write a single line of...

Answered: 1 week ago

Question

★★★★★

1) If Bellevue was using Class B private addresses for internal computers and they had 16 departments where each department had their own subnet, how many computer hosts could be in each department...

Answered: 1 week ago

Question

★★★★★

1-25 Strategic decisions and management accounting. A series of independent situations in which a firm is about to make a strategic decision follow. Decisions: a. Roger Phones is about to decide...

Answered: 1 week ago

Question

★★★★★

The precedence table for all routine tasks performed after work hours for one family is given. a) Draw the Gannt chart for the whole activity. b) Draw the AOA network for the after-work hours...

Answered: 1 week ago

Question

★★★★★

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.

Answered: 1 week ago

Question

★★★★★

4. Based on a message you have recently received, analyse it in relation to its three components: a. the information component, b. its relational component and c. its hierarchical component.

Answered: 1 week ago

Question

★★★★★

3. Give an example of a problem or phenomenon in everyday life where information is presented in an emotional way.

Answered: 1 week ago

Previous Question Next Question