Problems that are missing information or are unclear

[Taylor Stoltzfus]

Some of the problems in the problem sets are missing information or are unclear. If you find any, please post them here! In your post, include the problem set, the problem number, and what it is about the problem that is erroneous. 

[Jonathan Lopez]

Extra Problem Set 4 

question #11 

Labor Supply problem 

missing  L bar (max time available) = 168

[jesus castro]

extra problem set 4  (#1)

i have spent way to much time on this question,but here we go:

Charlie’s utility function is xAxB. The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40. If the price of apples increased to $5 and the price of bananas stayed constant, the substitution effect on Charlie’s apple consumption would reduce his consumption by (choose the closest answer) 

so what i got for point A (20,10)

demand for xa=m/2pa

and xb=m/2p2

xb may be irrelevant by how the question only asks for a change in apples

point b:  plug in 20 and 10 into the util function of u (XaXb)=200 utils

finding our ibc

- since we know this is a cobb douglas equation by how it does have dmrs(its on my notes and im lazy to write it right now) 

-so we use our previous demands from point A  and we multiply them 

-xa=m/2pa

-xb=m/2p2

when we multiply the demands we get (m-squared/2pa  times 2pb) 

so its (m squared/40=200utils) 

then we multiply 40 by both sides to get m squared=1600(i multiplied by 14 like an idiot, dont do this, multiply by 40)now its 8000 utils,( radical both sides to get our ibc of 89.44)

wow, i just realized what i did wrong and i dont feel like wasting what i put up sooo:

might as well help some fellow gauchos.

using the apple demand, xa=m/2pa(dont forget the new price of 5)

we get 89.44/10=9, but 11 is the closest...it is C.