I have a problem with my microeconomic homework. I need help to finish it within this 12 hours after this post.
1.A household lives in two periods (1 and 2) and earns an income of 290$ in period 1 and 240$ in period 2. The interest rate is 20%. The household maximizes its intertemporal utility function = ln 1+ 0.5ln 2. The consumption level in period 1 is 1 and in period 2 2. a) Determine the intertemporal budget constraint . b) Determine the utility -maximizing consumption levels for both periods with the help of the Lagrangian. c) Determine the savings in period 1. d) Determine the savings in period 1 if there is an a dditional inheritance of 45$ in period 2. e) Assume in addition to the inheritance of 45$, the central bank raises the interest rate to 50%. Determine the new utility -maximizing consumption levels for both periods and savings in period 1. 2.
A household has the utility function = 1/32/3 with x as the quantity of good x and y as the quantity of good y. The price of good x is 3 and the price of good y is 3. a) Determine the utility -maximizing demand for good x and y. b) Determine the i ncome -consumption curve . c) Assume the price of good x increases to 6. Determine the new demand for good x and y. d) Explain the income and substitution effe ct on the demand for good y due to the price increase in c).
