Question
There are 300 individuals in the economy, they all have the same utility and income function. u (x_i, y_i ) = (x_i ^ 2)(y_i) with
There are 300 individuals in the economy, they all have the same utility and income function.
u (x_i, y_i ) = (x_i ^ 2)(y_i)
with p_y = 1 and w_i = 500.
a) Obtain individual demand function.
b) Deduct market demand.
c) Calculate the price elasticity of demand.
d)Calculate the marginal revenue.
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
