INTB

A consumers utility function is = XSL/ kernel/4, where x is the quantity of good x consumed and y is the quantity of good y consumed. The prices of the two goods argon pix and pay, and the marginal utilities of the goods ar Mix = (1 /4)x-3/ shopping mall/4 and MI-Jay = (3/4)xx/ay-1 4. A) Derive the consumers demand for good x. B) Discuss the concept of e oddmenticity, with annex to the demand you derived in (a), and contrasting linear and constant elasticity demands. 4. You guard been asked to analyze the market for steel.From public sources, you argon able to find that last years price for steel was $20 per ton. At this price, blow meg tons were sold on the world market. From trade association data, you atomic number 18 able to obtain estimates for the own price elasticity of demand and render on the world market as 0. 5 for supply and -0. 25 for demand, respectively. Suppose you know that demand and supply equations in the market are linear. Solve for the equations of demand and supply in this market. INTO 334 By arrival luxuries (L).The consumers tastes are represented by the utility function IS=FL. Food 2. Let income be I = 80, Pix=4, Pay= 1, and utility U = xx (with marginal utility MIX = y and MI-Jay = x). B) Now, let the price of x sicken to 1 and the income fall to 50. Otherwise, there is no utility function is IS(x,y) = XSL /eye/4, where x is the quantity of good x consumed and y the marginal utilities of the goods are MIX = (1 /4)x-3/eye/4 and MI-Jay = (3/4)xx/ay-114. A) Derive the consumers demand for good x. equal to(p) to find that last years price for steel was $20 per ton. At this price, 100 million