UCLA MATH 131A - Solution for HW2 (3 pages)

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Solution for HW2



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Solution for HW2

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Pages:
3
School:
University of California, Los Angeles
Course:
Math 131a - Analysis
Analysis Documents

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Economics 11 Answer for HW2 1 a 1 3 2 3 K x1 x2 1 2 K 3 2 x1 x2 x2 K 3 2 1 2 x1 i K U p1 1q 1 The indifference curve follows x2 1 1 2 x1 ii K U p27 8q 12 The indifference curve follows x2 123 2 1 2 x1 iii K U p8 1q 2 The indifference curve follows x2 23 2 1 2 x1 x2 ii i October 26 2016 iii x1 1 Economics 11 Answer for HW2 b Tangency condition 2 3 2 3 x2 1 3 1 3 p2 3qx1 x2 p1 3qx1 1 1 x2 2x1 Maxing out the budget x1 x2 120 Solving simultaneously x1 40 x2 80 c x2 80 Optimal Bundle 40 October 26 2016 x1 2 Economics 11 Answer for HW2 2 You can do it one by one but if you notice that paq pdq actually represent the same Cobb Douglas preference then it will be easier a d Tangency condition x2 1 2x1 1 Maxing out the budget x1 x2 120 By solving simultaneously we can get x1 40 x2 80 e Tangency condition 1 2 x1 1 Maxing out the budget x1 x2 120 By solving simultaneously we can get x1 2 x2 118 October 26 2016 3



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