[Solution] Patti has a quasi-linear utility function of the form U(x, y)=√x+y. Derive Patti's demand curve for x as a function of the prices, P_x


Question: Patti has a quasi-linear utility function of the form \(U(x, y)=\sqrt{x}+y\).

  1. Derive Patti's demand curve for \(x\) as a function of the prices, \(P_{x}\) and \(P_{y}\). Verify that the demand for \(x\) is independent of the level of income at an interior optimum.
  2. Derive her demand curve for \(y\).

Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document

log in to your account

Don't have a membership account?
REGISTER

reset password

Back to
log in

sign up

Back to
log in