INTB

A consumer's utility function is = XSL/eye/4, where x is the quantity of good x consumed and y is the quantity of good y consumed. The prices of the two goods are pix and pay, and the marginal utilities of the goods are Mix = (1 /4)x-3/eye/4 and MI-Jay = (3/4)xx/ay-1 ‘4. A) Derive the consumers demand for good x. B) Discuss the concept of elasticity, with reference to the demand you derived in (a), and contrasting linear and constant elasticity demands. 4. You have been asked to analyze the market for steel.From public sources, you are able to find that last years price for steel was $20 per ton. At this price, 100 million tons were sold on the world market. From trade association data, you are able to obtain estimates for the own price elasticity of demand and supply on the world market as 0. 5 for supply and -0. 25 for demand, respectively. Suppose you know that demand and supply equations in the market are linear. Solve for the equations of demand and supply in this market. INTO 334 By arrival luxuries (L).The consumer's tastes are represented by the utility function IS=FL. Food 2. Let income be I = 80, Pix=4, Pay= 1, and utility U = xx (with marginal utility MIX = y and MI-Jay = x). B) Now, let the price of x fall to 1 and the income fall to 50. Otherwise, there is no utility function is IS(x,y) = XSL /eye/4, where x is the quantity of good x consumed and y the marginal utilities of the goods are MIX = (1 /4)x-3/eye/4 and MI-Jay = (3/4)xx/ay-114. A) Derive the consumer's demand for good x. Able to find that last year's price for steel was $20 per ton. At this price, 100 million