Question

Question 5 1 pts Find the formula for the demand function for a (x as a function of P.) when U(x, y) = 3:0.25.0.75, and M = 20 Impossible to determine without knowing Py • r = 0.25% Question 6 1 pts Imagine you work at Nike estimating the demand for shoes. Your boss tells you that due to new import tariffs, you need to increase the price of your product by 20%. She asks you to calculate what the percentage impact of this will be on sales. What should you calculate? Elasticity of demand for shoes with respect to income Partial derivative of demand for shoes with respect to own price Elasticity of demand for shoes with respect to own price Engel curve for shoes Question 7 1 pts If Ex > 0.then: xis a substitute for y ex is a Giffen good O x is an ordinary good x is a compliment to y

Answer 1

- x = 0.25(20) is correct of the Ô option D 012,4)= X 0-25 75 y M=20 - Bridget line bext Pyy=m. a box t Pyy=20] - The of hincal Condinon be | MRS= MUxPx Muy Py MUx = Px muy 0-252-7 . 75 x *23 y Liss - 1 * Py = 3 Px / x ) Put by = 3 3 1 1 2 in equ o we hiel Px-x + 3bx ( 2 ) g = 20 » 4 Peox 200/

☺ option § Elasticity of demand 1. for shoes with respect to I own prices in correct option . If we Get know to the Elashcity of demand then we know that 2011 in Price who will affected flee Quantity of shoes by how much. 7 option & is a substitute for y - i correct option if Gross price elasticity >o i e positive which mean the Price of Gooda increase then Quantity of Goody e incease i-e it in the.