# Tagged Questions

For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.

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### Utility function and preferences?

This might be more of an economical question, but perhaps some of you might've come across it before as math is involved; A person P prefers bundle (x1,x2) over (y1,y2) if (x1*x2) > (y1*y2). What is ...
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### Utility Max Problem

I have a utility function $U(x,y)=\frac{xy}{x+y}$ and a budget of $200=2x+2y, P_x=P_y=2$. But for the first 50 units of product 1 sell for 2 dollars but for "$x>50$" the price of product 1 ...
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### Follow-up on solution to Markov process equation

I asked a question here about solving a system related to an absorbing Markov chain. I now have a variation where there are $m$ types (of student, job seeker, etc) each of which applies to ...
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### Minimizing the cost of production by choosing between two options with different resource demands

Suppose that the ﬁrm has two possible activities to produce output. Activity $A$ uses $a_1$ units of good $1$ and $a_2$ units of good $2$ to produce $1$ unit of output. Activity $B$ uses $b_1$ units ...
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### Need help explaining how the elasticity was derived [closed]

We had a lecture on calculating elasticity in microeconomics and I need help understanding how the answer was derived. I didn't quite get how we came up with the answer. My classmate said to just ...
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### How to find the short run and long run cost functions, given the production function?

The production function of car is given by $f(x_1,x_2,x_3) = \sqrt{x_1}+\sqrt{x_2}+\sqrt{x_3}$ (assume competitive input and output markets). Find the short run cost function (let input 3 be ...
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### Problem understanding an implicit differentiation

Here is a general budget constraint: $p{_1}x{_1}+p_{2}x_{2}=M\Leftrightarrow \frac{p_1}{p_2}x_1+x_2=\frac{M}{p_2}\Leftrightarrow {p_{1}}'x_1+x_2=M{}'$. The main idea is that since prices are given, ...
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### Price and price elasticity problem in Economics

I cannot figure out this problem, if anyone can just point me in the right direction that would be great. The price is $\$20$and the price elasticity changes from$-2$to$-3.$If$\$20$ was the ...
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### Microeconomics: Calculating Tax Revenue and Tax incidence

Australian Government has imposed a tax on Beer. Assume that the tax on Beer is \$20 per unit (a unit is a carton of drinks) Assume the demand and supply functions for cartons of Beers per week are: P=...