  (Solution) 13 Q3. Draw A Budget Constraint That Is Consistent With The Following Prices And Income. Given, Income = 400, PY = 100, PX = 50 . X Is T-shirt And Y... | Snapessays.com

(Solution) 13 Q3. Draw a budget constraint that is consistent with the following prices and income. Given, income = 400, PY = 100, PX = 50 . X is T-shirt and Y...

Question is in the document below. Please give me full and correct answer, thank you very much!13

Q3. Draw a budget constraint that is consistent with the following prices and income.

Given, income = 400, P

Y

= 100, P

X

= 50 . X is T-shirt and Y is blue jean.

a.

Demonstrate your original budget constraint (Base case)

b.

Demonstrate how your original budget constraint would change if income

increases to 500. (Compared to an original case)

c.

Demonstrate how your original budget constraint would change if P

Y

decreases to

10. (Compared to an original case)

Q4. Assume a consumer with the Cobb-Douglas utility function:

U (X, Y) = X

0.5

Y

0.5

where MRS= (MU

x

/MU

y

)=Y/X

The prices are P

X

= P

Y

= \$1 and the income is \$100.

a. Find the optimal levels of demand for X* and Y*.

b. What is his utility?

Solution details:
STATUS
QUALITY
Approved

This question was answered on: May 23, 2022 Solution~00021147602258.zip (25.37 KB)

This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

May 23, 2022

EXPERT

Tutor