This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: marginal utility for y = 1, y = 4, y = 5? Sketch the marginal utility. ( ) x x x = 1 use may You Ans. ( ) y MU y 2 2 = (Graph will be shown in class) Spring 2010 Econ 320 Intermediate Microeconomic Analysis Yoichi Otsubo  2 5. Suppose David purchases only Pepsi and Pizza. Let x be the number of units of Pepsi, and y be the units of Pizza he purchases per month. Also suppose that his utility function is measured by xy U = , and his monthly income is I . Each unit of Pepsi costs P x and each unit of Pizza costs P y . Write a statement of the constrained optimization problem. Which variables are exogenous? Which variables are endogenous? Ans. I y P x P xy y x y x ≤ + : subject to max ) , ( Exogenous variables: I, P x , P y . Endogenous variables: x, y....
View
Full
Document
This note was uploaded on 02/29/2012 for the course 320 322 taught by Professor Macrowilliams,microyoshi during the Fall '10 term at Rutgers.
 Fall '10
 MacroWilliams,MicroYoshi

Click to edit the document details