Ronald consumes two goods, X and Y. He has a utility function given by the expression: U = 2X0.5Y0.5.
So, MUX = (Y0.5) / (X0.5) and MUY = (X0.5) / (Y0.5). The current prices of X and Y are 20 and 80, respectively. Ronald currently has an income of 640 per time period.
a. Calculate the optimal quantities of X and Y that Ronald should choose, given his budget constraint. Show your work. b. Holding Ronald’s income and PY constant at $640 and $80 respectively, find out the equation for Ronald’s demand curve for X. Show your work.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.