Question

Name: Part (iv): Derive Hank's demand for nuts, x,(papa,M). Beet Conny. PM 2 x* - 2 O 2 Mbozudy. pi LP2 2 M P, P. P2 Part (v): Derive Hank's demand for berries, xa(pupa,m). MBS = 2 X"=-M P2 DIE $2. On the graph Part(W): Suppose that Hank has $42 to spend on nuts and berries, and below, construct Hank's Demand Curve for nuts.

Please try to go step by step in the questions (iv-vi) so i can follow along and know how to do them, thanks!

Utility function is: U(x1,x2)=2x1+x2

Answer 1

Q. U- 2%, + XP of so mes= Oulaxi au/ X 27 2 . M then he will B. Pz So, now if mes > P Choose X, as he will get X, cheapes if MRS <P then he will choose X2 De as it will be cheaper. I So Demand Care of X, : t o of Pi>2.7 Spend nothing on X . He will spend all on X, . Demand tune of X2. ریا slod 1 6Sley Stay 1 V ở Giren P2 = 2 demand Anything between of 42/4 1 . : 4 4214