Economics 11: Answer for HW21.(a)K “ x1{31x2{32ùñ K3{2“ x1{21x2ùñ x2“K3{2x1{21.i.K “ Up1, 1q “ 1. The indifference curve followsx2“1x1{21.ii.K “ Up27, 8q “ 12. The indifference curve followsx2“123{2x1{21.iii.K “ Up8, 1q “ 2. The indifference curve followsx2“23{2x1{21.x1x2iiiiiiOctober 26, 2016 1Economics 11: Answer for HW2(b)- Tangency condition:´p1{3qx´2{31x2{32p2{3qx1{31x´1{32“ ´11.ùñ x2“ 2x1.- Maxing out the budget:x1` x2“ 120.- Solving simultaneously,x1“ 40, x2“ 80.(c)x1x28040•Optimal BundleOctober 26, 2016 2Economics 11: Answer for HW22.You can do it one by one, but if you notice that paq „ pdq actually represent the same Cobb-Douglaspreference, then it will be easier.(a) „ (d)Tangency condition:´x22x1“ ´11.Maxing out the budget:x1` x2“ 120.By solving simultaneously, we can getx1“ 40, x2“ 80.(e)Tangency condition:´2x1“ ´11.Maxing out the budget:x1` x2“ 120.By solving simultaneously, we can getx1“ 2, x2“ 118.October 26, 2016
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