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Janiceconsumestwogoods,XandY.Janicehasautilityfunctiongivenbytheexpression:U=4X0.5Y0.5.ThecurrentpricesofXandYare25and50,respectively.Janicecurrentlyhasanincomeof750pertimeperiod.a.WriteanexpressionforJaniceʹ
题目详情
Janice consumes two goods,X and Y.Janice has a utility function given by the
expression:U = 4X0.5Y0.5.The current prices of X and Y are 25 and 50,respectively.
Janice currently has an income of 750 per time period.
a.Write an expression for Janiceʹs budget constraint.
b.Calculate the optimal quantities of X and Y that Janice should choose,given
her budget constraint.
c.Suppose that the government rations purchases of good X such that Janice is
limited to 10 units of X per time period.Assuming that Janice chooses to spend
her entire income,how much Y will Janice consume?
d.Calculate the impact of the ration restriction on Janiceʹs utility.
expression:U = 4X0.5Y0.5.The current prices of X and Y are 25 and 50,respectively.
Janice currently has an income of 750 per time period.
a.Write an expression for Janiceʹs budget constraint.
b.Calculate the optimal quantities of X and Y that Janice should choose,given
her budget constraint.
c.Suppose that the government rations purchases of good X such that Janice is
limited to 10 units of X per time period.Assuming that Janice chooses to spend
her entire income,how much Y will Janice consume?
d.Calculate the impact of the ration restriction on Janiceʹs utility.
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答案和解析
a.预算约束25x+50y
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