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Utility Assignment | Homework For You

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December 9th, 2019

 Consumers of petroleum in Owl, ND can be split into three types. One type has a utility function of U1 = A4/5P1/5, where A = all other goods purchased per week and P = amount of petrol consumed per week. Another type has a utility function of U2 = (AP)0.5.

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The last type gets utility from A and P by U3 = 15A + P. There are 50 consumers with the first utility function, 30 with the second function, and 20 with the third function. All consumers have budget constraints in which their income is 100/week to purchase A and P. The price of A is 12. The price of P is 2.Show the quantity of P consumed in this market is 1250. Get Economics homework help today

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