NEED GOOD ECON PERSON ASAP

[smellmuth]

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post the questions. I'll answer them.

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i got temp banned last time i did that. oh well, my life is over, i dont even care. heres a question (NOTE MODS THIS IS NOT HOMEWORK NOR WILL THE ANSWERS OBTAINED HEREIN BE PURPORTED AS MY OWN TO ANY ACADEMIC INSTITUTION, THIS QUESTION IS A HYPOTHETICAL SCENARIO DESIGNED TO ILLUSTRATE A CONCEPT):

consumer purchases only food and clothing, her utility function can be expressed as U(F,C) = F*C

derive the consumers demand for food and clothing.

now, i could easily do this if i was given specific budget and prices. they want a general formula for demand, based on this utility function. wtfbbq?

[Kneel B4 Zod]

[ QUOTE ]
[ QUOTE ]
post the questions. I'll answer them.

[/ QUOTE ]

i got temp banned last time i did that. oh well, my life is over, i dont even care. heres a question (NOTE MODS THIS IS NOT HOMEWORK NOR WILL THE ANSWERS OBTAINED HEREIN BE PURPORTED AS MY OWN TO ANY ACADEMIC INSTITUTION, THIS QUESTION IS A HYPOTHETICAL SCENARIO DESIGNED TO ILLUSTRATE A CONCEPT):

consumer purchases only food and clothing, her utility function can be expressed as U(F,C) = F*C

derive the consumers demand for food and clothing.

now, i could easily do this if i was given specific budget and prices. they want a general formula for demand, based on this utility function. wtfbbq?

[/ QUOTE ]

ok, this one is easy.

the specific budget on questions like this is normally around 3x, where x = nominal income. do they give that? even if not, you should be able to estimate it pretty easily by assuming nominal income is something like f/C * per capita free cash flow.

the alternative, but not suggested route, is to estimate prices by inverting the yield curve, until the hypotenuse = F.

[Messiahkid]

[ QUOTE ]
post the questions. I'll answer them.

[/ QUOTE ]

[smellmuth]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
post the questions. I'll answer them.

[/ QUOTE ]

i got temp banned last time i did that. oh well, my life is over, i dont even care. heres a question (NOTE MODS THIS IS NOT HOMEWORK NOR WILL THE ANSWERS OBTAINED HEREIN BE PURPORTED AS MY OWN TO ANY ACADEMIC INSTITUTION, THIS QUESTION IS A HYPOTHETICAL SCENARIO DESIGNED TO ILLUSTRATE A CONCEPT):

consumer purchases only food and clothing, her utility function can be expressed as U(F,C) = F*C

derive the consumers demand for food and clothing.

now, i could easily do this if i was given specific budget and prices. they want a general formula for demand, based on this utility function. wtfbbq?

[/ QUOTE ]

ok, this one is easy.

the specific budget on questions like this is normally around 3x, where x = nominal income. do they give that? even if not, you should be able to estimate it pretty easily by assuming nominal income is something like f/C * per capita free cash flow.

the alternative, but not suggested route, is to estimate prices by inverting the yield curve, until the hypotenuse = F.

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hmm yea you are overthinking this. this was a question on the mid term, it was written exactly like this. the question then goes on to give an income and prices for F and C, and ask for income/substitution effect numbers for changes in price, but since this question is posed before the budget/prices are introduced, they are obviously looking for some general formula relating budget (M) and prices (Pf, Pc) to demand. i.e. if we had Pf = 5 and Pc = 2 and M = 70, we could derive the utility function, set it to zero and find optimal choice with these numbers. But what they want is a general formula into which ANY combo of M, Pf and Pc can be plugged into to find demand.

[RR]

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HOW THE [censored] DO I DERIVE DEMAND???? WTF DOES THAT EVEN MEAN???

LIKE IT SAYS U=XY, DERIVE DEMAND WTF THERES NO NUMBERS

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Max U (take a derivative) and you will have the demand function.

[BradleyT]

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consumer purchases only food and clothing, her utility function can be expressed as U(F,C) = F*C

derive the consumers demand for food and clothing.

[/ QUOTE ]

The answer is insatiable.

[Sephus]

p1F + p2C = m
optimal choice occurs when MRS (-mU1/mU2) = -p1/p2

----

(-C/F) = -p1/p2
p1F + p2C = m

solve the second equation for C and subsitute into the first and you have a function for F given prices and budget.

[econophile]

deriving demand simply means finding a the conumer's optimal choice of a good as a function of the good's price, income, and possibly the price of other goods.

[smellmuth]

[ QUOTE ]
p1F + p2C = m
optimal choice occurs when MRS (-mU1/mU2) = -p1/p2

----

(-C/F) = -p1/p2
p1F + p2C = m

solve the second equation for C and subsitute into the first and you have a function for F given prices and budget.

[/ QUOTE ]

this is exactly what i needed to know. tyvm.

[econophile]

over/under on your exam grade : C+