question 1 consider the market for a good that has 8 buyers each havin
Question 1 Consider the market for a good that has 8 buyers, each having income $200. Let q
denote the amount of the good and the money left after buying the good. Buyers 1,2,3 have the
same utility function -q-q²+m. Buyers 4,5 have the same utility function a4-74-q² + m.
Buyers 6,7,8 have the same utility function us-10g-q²+m. Denote the price of the good by p.
(a) [5 points] Show that regardless of the price of the good, each buyer can always attain a utility
of at least 200.
(b) [7 points] Solving utility maximization problem, for each buyer find the individual demand.
(c) [3 points] Find the numerical value of the market demand when price p = 5.
(d) [3 points] For price p = 5, determine how much money is left with buyer 3 after buying the
(e) [3 points] For price p-5, determine how much money is left with buyer 8 after buying the
*The amount will be in form of wallet points that you can redeem to pay upto 10% of the price for any assignment. **Use of solution provided by us for unfair practice like cheating will result in action from our end which may include permanent termination of the defaulter’s account.Disclaimer:The website contains certain images which are not owned by the company/ website. Such images are used for indicative purposes only and is a third-party content. All credits go to its rightful owner including its copyright owner. It is also clarified that the use of any photograph on the website including the use of any photograph of any educational institute/ university is not intended to suggest any association, relationship, or sponsorship whatsoever between the company and the said educational institute/ university. Any such use is for representative purposes only and all intellectual property rights belong to the respective owners.