Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Surname1Student Name:InstitutionClassDateQuestion 1: Description of an EconomyConsider an endowment economy populated by Ben and Jerry. Their endowments aremeasured by units of apple ( ) and banana ( ). Bens endowment is represented as vector of (,)=(2, 1) whereas Jerrys endowment as ( , )=(1, 2). As for preferences, Bens utility functionis UBen( , ) + and Jerrys utility function is UBen( , ) . Assume that these two guystrade goods without any frictions in perfectly competitive markets. Now, answer the followingquestions based on the descriptions so far.(a) Set up and solve Bens utility maximization program under the market price of (Notethat is a relative market price of X to Y, i.e. = / ). Compare his optimal consumptionplan with his initial endowment.UBen (X, Y) = Log X + Log YU =x yU= 1x 2U= 2Therefore,U (2) = log 2 + log 12Therefore, U = log (2x1)UBen= log 2(b) Set up and solve Jerrys utility maximization program under the market priceof . Compare his optimal consumption plan with his initial endowment.UBen (X, Y) = UBen (1, 2) =12U = U (1, 2)U= 1x2U= 2Surname2U (2)2 = (12)2U (4) =2U= 2/4Uben =0.5(c) By solving (a) and (b), you have derived individual demand functions for Xand Y. Based on your answer to (a) and (b), derive market demands for X andY.Market demand = x/yMarket Demand = log 2/0.5Market demand = log 4Market demand = 0.60(d) Set the market demand ...


To Order an Original Plagiarism Free Paper on the Same Topic Click Here

testimonials icon
i need to write an argument essay. the essay require in text citation format and a single page of work cited. the citation had to come from...
testimonials icon
In preparation for a presentation to the CEO of the organization next week on a product development strategy, prepare the following p...
testimonials icon
Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will...
testimonials icon
The Discussion Assignment:The "Seeking Information from a Client" Case is located on page 131 in your textbook (at...
testimonials icon
/*! elementor - v3.6.5 - 27-04-2022 */ .elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading...
testimonials icon
I’m studying for my Marketing class and don’t understand how to answer this. Can you help me study?...
testimonials icon
RUNNING HEADER: Concept of Information AssuranceConcept of Information AssuranceInstitutional AffiliationDate1CONCEPT OF INFORMATION ASSURANCEAs tech...
testimonials icon
The identification of bacteria is a fundamental objective of microbiologists. It is essential to d...
testimonials icon
Question Description Finance:...
testimonials icon
  The benchmark assesses the following competencies: 1.4 Participate in health care policy development to influence...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65