economics
posted by ali .
Consider a consumer who has an experienced utility function given by . Let denote the market price of good , and assume that it remains fixed throughout the problem.
The company selling the good starts an advertisement campagin that has the following effect on the consumer: he makes decisions as if maximizing a decision utility function given by .
QUESTION. Write down the expression for the difference between the consumer demand and his optimal level of consumption (as a function of ).
Respond to this Question
Similar Questions

Micro Economics
Briefly explain the following: (a)Economic cost and accounting cost. (b)Free market economy and mixed economy. (c)Marginal utility theory and indifference curves analysis. Please note that we don't do students' homework for them. Once … 
economics math
Consider the problem of a rational consumer with an experienced utility function given by 10ln(x)+m and a wealth level W=100. Suppose that the market price for good x is p=$2 per unit. You are asked to analyze the impact on the consumer's … 
economics math
Consider a consumer who has an experienced utility function given by UEU(x,m)=2sqrtx+m. Let q denote the market price of good x, and assume that it remains fixed throughout the problem. The company selling the good x starts an advertisement … 
economics math
Consider a rational consumer with a utility function given by U(x,m)=Aln(2x)+m. The consumer needs to decide how much of good x to buy given the following pricing rule: the first 10 units sell at a price of $2 p/unit, additional units … 
CALCULUS ECONOMICS
Consider the problem of a rational consumer with an experienced utility function given by 8x√+m. Let p=$1 p/unit denote the market price of good x. Suppose that, initially, the firm selling the good matches his purchases as follows: … 
CALCULUS ECONOMICS
Consider the problem of a rational consumer with an experienced utility function given by 8*x^(1/2)+m. Let p=$1 p/unit denote the market price of good x. Suppose that, initially, the firm selling the good matches his purchases as follows: … 
CALCULUS ECONOMICS
Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by (1/2)*(q^(1/2))+m +(G^(1/2)) where G denotes the total level … 
economics
Consider the problem of a rational consumer with an experienced utility function given by 8√x+m. Let p=$1 p/unit denote the market price of good x. Suppose that, initially, the firm selling the good matches his purchases as follows: … 
math, economics
Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by 1/2√q+m+√G, where G denotes the total level of consumption … 
Economics
Consider the problem of a rational consumer with an experienced utility function given by 10√x+m. Let q denote the market price of good x. What is the expression for the consumer surplus if the consumer receives a total cash …