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PART II (5 open-ended questions, multiple parts, 70 points total)

How many hockey games (y) are you willing to give up in order to attend one more performance at DPAC (x), when your bundle includes x=6 and y=21? I’m willing to give up the following number of hockey games: [ans1]

Use the prompt below to answer questions 23-26. Suppose that during the colder months in South Bend, you pass the time by attending performances at DPAC (x) and hockey games (y). The discounted student prices for these events are Px=$2 and Py=$3. Assume you spend your entire budget allocated to attending these events. Your tastes and preferences for DPAC performances and hockey games can be described by the following utility function:

Using the terms provided, indicate which categorize the demand for generic-brand house paint, based on the information provided by the estimated demand function?

Use the prompt below to answer question 22. Consider the following demand function and related statistics for generic-brand house paint:

Optional Extra Credit Question: The real-world application article, “Kroger vs. Walmart vs. Aldi: Which is the Cheapest Grocery Store?” argues that Aldi customers maximize utility because this store

Re-solve the optimal bundle if the price of a Cool Lime Starbucks Refresher (L) increases to $3. You may assume no change in your income or the price of a Strawberry Acai Starbucks Refresher (S). Enter the values for L and S. The value for L is [ans1] and the value for S is [ans2].

Suppose the market supply function is . Calculate own-price elasticity of demand at market equilibrium when = 32.42.  When necessary, round your final solutions to two places after the decimal. Own-price elasticity of demand at market equilibrium when Y = 32.4 is [ans1].

If Mackenzie Enterprises can produce a total of 100 units of the two products together, use the Lagrangian Method to find the combination of X and Y that maximizes profit. DO NOT round your solution at any time. The value for X is [ans1] and the value for Y is [ans2].

Consider the indifference map and budget constraints below:   Suppose the representative consumer allocates income towards goods X and Y. Based on this consumer’s budget constraint and indifference map, what is income if the price of good Y is $5? What is the price of good X when the optimal quantity of good X is 5 units?