Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
MrsAngelD MrsAngelD
wrote...
Go to Answer
Posts: 322
Rep: 7 0
6 years ago
Rachel spends her income, Y, on Rock Shows (R) and Sunglasses (S) with prices pR and pS. Rachel's preferences are given by the Cobb-Douglas utility function
      U(X,Y) = R.8S.2
a.   Write out the Lagrangian for Rachel's utility-maximization problem.
b.   Use the Lagrangian to derive Rachel's optimal choice, (R*,S*).
c.   For a given utility level, U0, derive Rachel's Expenditure function E(pR,pS,U0).
d.   Use the Expenditure function to derive Rachel's compensated demand for Rock Shows.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
Read 204 times
1 Reply
Replies
Answer verified by a subject expert
forrestforrest
wrote...
#1
Posts: 266
Rep: 3 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 370 words.
1

Related Topics

MrsAngelD Author
wrote...

6 years ago
this is exactly what I needed
sadiewolf
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
einstein
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1320 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 226
  
 1036
  
 180
Your Opinion
How often do you eat-out per week?
Votes: 79
Previous poll results: What's your favorite funny biology word?