Anyone here take basic university economics?, income expansion pathway - GoFuckYourself.com

Myst · 02-08-2005, 12:26 AM

Michael derives hsi utility from two goods - cake (C) and donuts (D. His utility is given by U = C*D, with MUc = D and MUd = C. He has himcome I = $120 and price of C, (Pc) = $1, and price of D (Pd) = $1 as well. What is Donalds income expansion path? What are utility maximizing C and D? Holding his himcome and Pd constant at their current values, what is Donald's demand curve for cake?

What playa knows this - its probably pretty simple, I took econ as a filler class

Kimmykim · 02-08-2005, 12:42 AM

Wow, I majored in economics the second time I was in college and I swear I don't recognize the word himcome. And I'm a little fuzzy on what the utility refers to as well...

woj · 02-08-2005, 01:01 AM

Where did you find that question? It doesn't really make sense that U would be C*D, but purely from mathematical point of view U will be max when C=D=60 if that helps you in any way...

02-08-2005, 12:26 AM	#1
Myst Confirmed User Join Date: Feb 2004 Location: Alberta, Canada Posts: 4,707	Anyone here take basic university economics?, income expansion pathway Michael derives hsi utility from two goods - cake (C) and donuts (D. His utility is given by U = C*D, with MUc = D and MUd = C. He has himcome I = $120 and price of C, (Pc) = $1, and price of D (Pd) = $1 as well. What is Donalds income expansion path? What are utility maximizing C and D? Holding his himcome and Pd constant at their current values, what is Donald's demand curve for cake? What playa knows this - its probably pretty simple, I took econ as a filler class __________________ ICQ: 298-523-037

02-08-2005, 01:01 AM	#3
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	Where did you find that question? It doesn't really make sense that U would be CD, but purely from mathematical point of view U will be max when C=D=60 if that helps you in any way... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000* Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

02-08-2005, 12:42 AM	#2
Kimmykim bitchslapping zebras!!!!! Industry Role: Join Date: Jun 2001 Location: In a shack by the beach Posts: 16,015	Wow, I majored in economics the second time I was in college and I swear I don't recognize the word himcome. And I'm a little fuzzy on what the utility refers to as well...