Given the demand function: Q = 100 - P + 2Pa + 0.2Y^2; where P =10, Pa = 15 and Y = 100.

Estimate the percentage change in demand if Pa rises by 3% and state whether the alternative good
substitutable or complementary? Round your answers to three decimal places. +0.039% and the
alternative good is substitutable -0.045% and the alternative good is complementary +0.084% and
the alternative good is complementary -0.044 and the alternative good is substitutable None of the
other answers is correct.
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ChatGPT
To estimate the percentage change in demand when the price of the alternative good (Pa) rises by
3%, we first need to differentiate the demand function with respect to Pa:

𝑑𝑄𝑑𝑃𝑎=2dPadQ=2

Now, we'll use this derivative to calculate the percentage change in demand:

Percentage change in demand=Δ𝑄𝑄×100Percentage change in demand=QΔQ×100

=(𝑑𝑄𝑑𝑃𝑎×Δ𝑃𝑎𝑄)×100=(QdPadQ×ΔPa)×100

=(2×0.03𝑄)×100=(Q2×0.03)×100

Given: 𝑄=100−𝑃+2𝑃𝑎+0.2𝑌2Q=100−P+2Pa+0.2Y2 𝑃=10P=10 𝑃𝑎=15Pa=15

𝑌=100Y=100

Substituting these values into the demand function, we get:

𝑄=100−10+2(15)+0.2(100)2Q=100−10+2(15)+0.2(100)2
𝑄=100−10+30+2000Q=100−10+30+2000 𝑄=2120Q=2120

Now, calculating the percentage change:

Percentage change in demand=(2×0.032120)×100Percentage change in demand=(

21202×0.03)×100 =(0.062120)×100=(21200.06)×100 ≈0.00283×100≈0.00283×100
≈0.283%≈0.283%

Since the percentage change in demand is positive, the correct answer is: +0.283% and the
alternative good is substitutable.

You
Given the equation: (x^2)(y^3) + 4xy + 8 = 0. The expression for dy/dx is: (-2xy^3 - 4y)/[3(x^2)
(y^2) + 4x] [-3(x^2)y - 4y^2]/(x^3 +8xy) (-y^2)/(1 + xy) None of the other answers is correct. (-
x^2 - 2xy + y^2)/(-x^2 + 2xy + y^2)
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Therefore, the correct expression for the first-order partial derivative of the function with respect to
𝑦y is:

3𝑥6𝑦2+6𝑥𝑦23x6y2+6xy2

So, the correct answer is:

3𝑥6𝑦2+6𝑥𝑦23x6y2+6xy2

You
Given the function: z = y/x^3 + x/y^2. The function obtained by differentiating first with respect to
x and then with respect to y and the function obtained by differentiating first with respect to y and
then with respect to x are, respectively: None of the other answers is correct. 12y/x^5 and 6x/y^4 (-
3/x^4) + (2/y^4) (-2/x^3) - (1/y^2) and (-2/x^3) - (1/y^2) (-3y/x^4) - (2/y^3) and (1/x^3) - (2x/y^3)
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ChatGPT
To find the partial derivatives of 𝑧=𝑦𝑥3+𝑥𝑦2z=x3y+y2x with respect to 𝑥x and 𝑦y, we'll
differentiate the function with respect to each variable separately.

First, let's find ∂𝑧∂𝑥∂x∂z: ∂𝑧∂𝑥=−3𝑦𝑥4+1𝑦2∂x∂z=−3x4y+y21

Now, let's find ∂𝑧∂𝑦∂y∂z: ∂𝑧∂𝑦=1𝑥3−2𝑥𝑦3∂y∂z=x31−2y3x

If we differentiate 𝑧z first with respect to 𝑥x and then with respect to 𝑦y, we get:
∂2𝑧∂𝑦∂𝑥=−31𝑥4−6𝑥𝑦4∂y∂x∂2z=−3x41−6y4x

If we differentiate 𝑧z first with respect to 𝑦y and then with respect to 𝑥x, we get:
∂2𝑧∂𝑥∂𝑦=−31𝑥4−6𝑥𝑦4∂x∂y∂2z=−3x41−6y4x

Therefore, the correct answer is:

(−31𝑥4−6𝑥𝑦4)(−3x41−6y4x)

You
A utility function is given by U = x^3 + 2y^2. The marginal utilities at (2, 2) with respect to x and
with respect to y, and the gradient of the curve at this point are, respectively: 12, 8, -1.5 12, 8, 1.5
16, 4, 4 16, -4, -4 None of the other answers is correct.
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ChatGPT
To find the marginal utilities with respect to 𝑥x and 𝑦y at the point (2,2)(2,2) and the gradient of
the curve at this point, we need to find the partial derivatives of the utility function
𝑈=𝑥3+2𝑦2U=x3+2y2 with respect to 𝑥x and 𝑦y and then evaluate them at the point (2,2)
(2,2).

The partial derivatives are:

∂𝑈∂𝑥=3𝑥2∂x∂U=3x2 ∂𝑈∂𝑦=4𝑦∂y∂U=4y

Now, let's evaluate them at the point (2,2)(2,2):

∂𝑈∂𝑥∣(2,2)=3(2)2=12∂x∂U∣∣(2,2)=3(2)2=12 ∂𝑈∂𝑦∣(2,2)=4(2)=8∂y∂U∣∣(2,2)=4(2)=8

So, the marginal utilities with respect to 𝑥x and 𝑦y at the point (2,2)(2,2) are 12 and 8,
respectively.

Now, to find the gradient of the curve at this point, we calculate the gradient vector:

∇𝑈=(∂𝑈∂𝑥,∂𝑈∂𝑦)∇U=(∂x∂U,∂y∂U)

∇𝑈∣(2,2)=(12,8)∇U∣∣(2,2)=(12,8)

The gradient of the curve at the point (2,2)(2,2) is (12,8)(12,8).

None of the provided options matches these values. The correct values are 12,8,1.512,8,1.5.

You
Given the function: z = (x^2)(y^4) - (x^5) + 3y. Use the small increments formula to estimate the
change when x increases from 1 to 1.1 and y decreases from 0 to -0.5. -3 -2 None of the other
answers is correct. -2.6 -0.6
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To estimate the change in 𝑧z using the small increments formula, we'll first find the partial
derivatives of 𝑧z with respect to 𝑥x and 𝑦y, and then use the formula:

Δ𝑧≈∂𝑧∂𝑥Δ𝑥+∂𝑧∂𝑦Δ𝑦Δz≈∂x∂zΔx+∂y∂zΔy

Given 𝑧=𝑥2𝑦4−𝑥5+3𝑦z=x2y4−x5+3y, let's find the partial derivatives:

∂𝑧∂𝑥=2𝑥𝑦4−5𝑥4∂x∂z=2xy4−5x4 ∂𝑧∂𝑦=4𝑥2𝑦3+3∂y∂z=4x2y3+3

Now, we'll calculate these derivatives at the point (1,0)(1,0):

∂𝑧∂𝑥∣(1,0)=2(1)(0)4−5(1)4=−3∂x∂z∣∣(1,0)=2(1)(0)4−5(1)4=−3
∂𝑧∂𝑦∣(1,0)=4(1)2(0)3+3=3∂y∂z∣∣(1,0)=4(1)2(0)3+3=3
Now, we have Δ𝑥=0.1Δx=0.1 (since 𝑥x increases from 1 to 1.1) and
Δ𝑦=−0.5−0=−0.5Δy=−0.5−0=−0.5 (since 𝑦y decreases from 0 to -0.5)).

So, using the small increments formula:

Δ𝑧≈∂𝑧∂𝑥Δ𝑥+∂𝑧∂𝑦Δ𝑦Δz≈∂x∂zΔx+∂y∂zΔy Δ𝑧≈(−3)(0.1)+(3)(−0.5)Δz≈(−3)(0.1)+(3)
(−0.5) Δ𝑧≈−0.3−1.5Δz≈−0.3−1.5 Δ𝑧≈−1.8Δz≈−1.8

Therefore, the estimated change in 𝑧z is approximately −1.8−1.8. None of the provided options
matches this value exactly. However, the closest option is "-2", so that might be the best choice
given the options provided.

You
The demand functions for two commodities, A and B, are given by Qa = A*(P^-0.5)*(Y^-0.5) and
Qb = B*(P^-1.5)*(Y^1.5). The income elasticity of demand for each good, respectively are. -0.5
and 1.5 0.5 and 1.5 None of the other answers is correct. -0.5 and -1.5 0.5 and -1.5
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Income elasticity of demand measures the responsiveness of the quantity demanded for a good to a
change in income, assuming prices remain constant. It is calculated as the percentage change in
quantity demanded divided by the percentage change in income.

For commodity A, the demand function is 𝑄𝑎=𝐴⋅𝑃−0.5⋅𝑌−0.5Qa=A⋅P−0.5⋅Y−0.5.

To find the income elasticity of demand for commodity A, we differentiate the demand function
with respect to income 𝑌Y:

𝑑𝑄𝑎𝑑𝑌=−0.5⋅𝐴⋅𝑃−0.5⋅𝑌−1.5dYdQa=−0.5⋅A⋅P−0.5⋅Y−1.5

Now, we can express the income elasticity of demand as:

𝐸𝑄𝑎,𝑌=𝑌𝑄𝑎⋅𝑑𝑄𝑎𝑑𝑌EQa,Y=QaY⋅dYdQa

𝐸𝑄𝑎,𝑌=𝑌𝐴⋅𝑃−0.5⋅𝑌−0.5⋅(−0.5⋅𝐴⋅𝑃−0.5⋅𝑌−1.5)EQa,Y=A⋅P−0.5⋅Y−0.5Y
⋅(−0.5⋅A⋅P−0.5⋅Y−1.5)

𝐸𝑄𝑎,𝑌=−0.5⋅𝑌⋅𝑌−1.5EQa,Y=−0.5⋅Y⋅Y−1.5

𝐸𝑄𝑎,𝑌=−0.5⋅𝑌0.5−1.5EQa,Y=−0.5⋅Y0.5−1.5

𝐸𝑄𝑎,𝑌=−0.5⋅𝑌−1EQa,Y=−0.5⋅Y−1
So, the income elasticity of demand for commodity A is −0.5−0.5.

For commodity B, the demand function is 𝑄𝑏=𝐵⋅𝑃−1.5⋅𝑌1.5Qb=B⋅P−1.5⋅Y1.5.

To find the income elasticity of demand for commodity B, we differentiate the demand function
with respect to income 𝑌Y:

𝑑𝑄𝑏𝑑𝑌=1.5⋅𝐵⋅𝑃−1.5⋅𝑌0.5dYdQb=1.5⋅B⋅P−1.5⋅Y0.5

Now, we can express the income elasticity of demand as:

𝐸𝑄𝑏,𝑌=𝑌𝑄𝑏⋅𝑑𝑄𝑏𝑑𝑌EQb,Y=QbY⋅dYdQb

𝐸𝑄𝑏,𝑌=𝑌𝐵⋅𝑃−1.5⋅𝑌1.5⋅(1.5⋅𝐵⋅𝑃−1.5⋅𝑌0.5)EQb,Y=B⋅P−1.5⋅Y1.5Y⋅(1.5⋅B⋅P−1.5⋅Y0.5)

𝐸𝑄𝑏,𝑌=1.5⋅𝑌⋅𝑌0.5EQb,Y=1.5⋅Y⋅Y0.5

𝐸𝑄𝑏,𝑌=1.5⋅𝑌1+0.5EQb,Y=1.5⋅Y1+0.5

𝐸𝑄𝑏,𝑌=1.5⋅𝑌2.5EQb,Y=1.5⋅Y2.5

So, the income elasticity of demand for commodity B is 1.51.5.

Therefore, the correct answer is −0.5−0.5 for commodity A and 1.51.5 for commodity B.

You
Given the production function Q = 2(L^2)K + L^(1/3); and the current levels of K and L are 0 and
1, respectively. Estimate the increase in capital needed to maintain the current level of output given
a 1 unit decrease in labor. Round your answers to three decimal places. +12 units of capital +0.083
units of capital +1.781 units of capital -12 units of capital None of the other answers is correct.
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To estimate the increase in capital needed to maintain the current level of output given a 1 unit
decrease in labor, we'll first find the partial derivative of the production function
𝑄=2𝐿2𝐾+𝐿1/3Q=2L2K+L1/3 with respect to labor 𝐿L.

∂𝑄∂𝐿=4𝐿𝐾−13𝐿−2/3∂L∂Q=4LK−31L−2/3

Given that the current level of labor is 𝐿=1L=1, we can evaluate the partial derivative at this
point:
∂𝑄∂𝐿∣𝐿=1=4𝐾−13∂L∂Q∣∣L=1=4K−31

Now, we want to find how much capital 𝐾K needs to increase in order to offset a 1 unit decrease
in labor while maintaining the current level of output. To do this, we set the change in output to
zero:

∂𝑄∂𝐿Δ𝐿+∂𝑄∂𝐾Δ𝐾=0∂L∂QΔL+∂K∂QΔK=0

Given that Δ𝐿=−1ΔL=−1 (a 1 unit decrease in labor) and Δ𝑄=0ΔQ=0 (to maintain the current
level of output), we can solve for Δ𝐾ΔK:

∂𝑄∂𝐿(−1)+∂𝑄∂𝐾Δ𝐾=0∂L∂Q(−1)+∂K∂QΔK=0

−4𝐾−13Δ𝐾=0−4K−31ΔK=0

Δ𝐾=−4𝐾−13ΔK=−31−4K

Δ𝐾=12𝐾1ΔK=112K

Δ𝐾=12ΔK=12

Therefore, the increase in capital needed to maintain the current level of output given a 1 unit
decrease in labor is +12+12 units of capital. So, the correct answer is: "+12 units of capital".

You
Given the function: (x^2)(y^3) - (x^2)/y = 6. The value of dy/dx at the point (-2, 1) is: -2 None of
the other answers is correct. 0 2.5 5
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To find 𝑑𝑦𝑑𝑥dxdy at the point (−2,1)(−2,1), we'll differentiate the given function implicitly with
respect to 𝑥x.

The given equation is: 𝑥2𝑦3−𝑥2𝑦=6x2y3−yx2=6

Differentiating both sides with respect to 𝑥x, we get:

2𝑥𝑦3+𝑥2⋅3𝑦2𝑑𝑦𝑑𝑥−2𝑥𝑦−𝑥2⋅−1𝑦2𝑑𝑦𝑑𝑥=02xy3+x2⋅3y2dxdy−y2x−x2⋅y2−1dxdy=0

Now, we'll substitute 𝑥=−2x=−2 and 𝑦=1y=1 into this equation, and solve for 𝑑𝑦𝑑𝑥dxdy:
−4+12𝑑𝑦𝑑𝑥+4+4𝑑𝑦𝑑𝑥=0−4+12dxdy+4+4dxdy=0

16𝑑𝑦𝑑𝑥=016dxdy=0

𝑑𝑦𝑑𝑥=016dxdy=160

𝑑𝑦𝑑𝑥=0dxdy=0

So, the value of 𝑑𝑦𝑑𝑥dxdy at the point (−2,1)(−2,1) is 00. Therefore, the correct answer is: 00.