1) a) Given the following typical utility curves determine whether they have convex indifference curves (that is, vhether the Marginal Rate of Substitution declines as x increases). U(x, y)=Vx² - y? b) Given the following Constant Elasticity of Substitution production function, show whether or not it is homogeneous, and the scale it exhibits. Q = [L² + K'³
1) a) Given the following typical utility curves determine whether they have convex indifference curves (that is, vhether the Marginal Rate of Substitution declines as x increases). U(x, y)=Vx² - y? b) Given the following Constant Elasticity of Substitution production function, show whether or not it is homogeneous, and the scale it exhibits. Q = [L² + K'³
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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![ence learning videos X
ECON 509 UNIT 1 ASSIGNMENT X
File | C:/Users/J...
UNIT ONE
Answer All questions
1) a) Given the following typical utility curves determine whether they have convex indifference
curves (that is, vhether the Marginal Rate of Substitution declines as x increases).
U(x,y)=vx -y
b) Given the following Constant Elasticity of Substitution production function, show whether
or not it is homogeneous, and the scale it exhibits. Q =[L' + K']%
2) Prove that the polynomial P(x) = -2x³ + 2x² + 10x + 6 has a zero at x = 3, and factor
the polynomial.
3) The demand and supply functions for two related goods; jeans (x) and shirts(y), are given by
the equations:
P = 50+Q,
P= 40+20,
Pa=100-5Q,-Q,
P = 240-100, - 8Q,
%3D
dy
sy
a) Find the equilibrium price and quantity of jeans (x) and shirts(y).
b) Explain with evidence from the system of equations whether the two goods are substitute
or complementary
80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0f856ab-0469-4496-a088-1a158b12f9e7%2Ff8b9d71d-764e-4bd8-8115-23db4dd4a575%2F69iykmy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ence learning videos X
ECON 509 UNIT 1 ASSIGNMENT X
File | C:/Users/J...
UNIT ONE
Answer All questions
1) a) Given the following typical utility curves determine whether they have convex indifference
curves (that is, vhether the Marginal Rate of Substitution declines as x increases).
U(x,y)=vx -y
b) Given the following Constant Elasticity of Substitution production function, show whether
or not it is homogeneous, and the scale it exhibits. Q =[L' + K']%
2) Prove that the polynomial P(x) = -2x³ + 2x² + 10x + 6 has a zero at x = 3, and factor
the polynomial.
3) The demand and supply functions for two related goods; jeans (x) and shirts(y), are given by
the equations:
P = 50+Q,
P= 40+20,
Pa=100-5Q,-Q,
P = 240-100, - 8Q,
%3D
dy
sy
a) Find the equilibrium price and quantity of jeans (x) and shirts(y).
b) Explain with evidence from the system of equations whether the two goods are substitute
or complementary
80
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