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Assignment 5

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tathuytrang18052006
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5 views

Assignment 5

Uploaded by

tathuytrang18052006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Group assignment presentation 5

Team 8:
Nguyễn Viết Duy Khánh
Tạ Thùy Trang
Nguyễn Ngọc Diệp
Kiều Quang Minh
Đinh Thị Thảo Vy
Problem 1
1.The budget line equation for this consumer:
3X+Y=60
=>Y=60-3X

The budget line


70

60

50
Y($1)

40

30

20

10

0
0 5 10 15 20 25

X($3)

2.
∆𝑇𝑈𝑥
-MUx = = (TU)’x
∆𝑄
TU = XY
=>TUx = X.(60-3X)
= -3X2 + 60X
=>(TU)’x = -6X + 60
=>MUx = -6X + 60
∆𝑇𝑈𝑦
-MUy = = (TU)’y
∆𝑄
1
X = 20- Y
3

TU = XY
1
=>TUy = (20− Y). Y
3
1
= 20Y- Y2
3
2
=>(TU)’y = 20- Y
3
2
=>MUy = 20- Y
3
−∆𝑌 𝑀𝑈𝑥 −6X + 60
-MRSxy = = 𝑀𝑈𝑦 = 2
∆𝑋 20− Y
3

3.
The optimal quantity of good X (X*): MUx = Px
The optimal quantity of good Y (Y*): Muy = Py
2
𝑀𝑈𝑥 MUy −6X + 60 20− Y
=>
𝑃𝑥
= <=> = 3
𝑃𝑦 3 1
<=> 3X - Y = 0 (1)
We have: 3X+Y=60 (2)
From (1) and (2) => X = 10 and Y = 30
Problem 2:
a.
-Lan’s budget line equation:
20,000X + 5000Y = 1,000,000
=>Y = 200 – 50X
-BL curve

BL curve
250

200

150
Potato

100

50

0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Meat

b.
TU = (X-2).Y
MU𝑥 𝑌
=> = 𝑋−2
𝑀𝑈𝑦
Lan's optimal choice between meat and potato to maximize her total utility is:
MU𝑥 MUy
=> =
𝑃𝑥 𝑃𝑦
𝑀𝑈𝑥 P𝑥
=> =
𝑀𝑈𝑦 𝑃𝑦
𝑌 20000
=> = =4
𝑋−2 5000
=> 4.(X-2) =Y
=> 4X-8 =Y (1)
And we have: 20000X+ 5000Y=1000000 (2)
From (1) and (2) => X=26 kg and Y=96 kg
Lan needs to buy 26kg of meat and 96kg of potato to maximize her total utility.

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