Managerial Economics Excel Homework

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Kanakamedala_Chapter_4_Problem_8-1_Start.xlsx
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Problem

Problem 8-1
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. Lucy has just been promoted to a managerial position and given a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for her office. Her utility function for carpets (x) and paintings (y) is given by U=sqrt(XY). Find the values of y when U = 4 and when U = 6 for x-values of 1, 2, 4, and 8.
U1 = 4
U2 = 6
x y1 y2
1
2
4
8
Use Excel to draw an indifference curve for U = 4 and another one for U = 6, where both indifference curves contain 1, 2, 4, and 8 carpets on a graph with carpets on the horizontal axis and paintings on the vertical axis.

Instructions

Project Description: In this problem, you will calculate the number of paintings with known utility and the given set of number of carpets. You will also draw indifference curves for different values of utility.
Steps to Perform:
Step Instructions Points Possible
1 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. Start Excel. 0
2 In cell D9, by using relative and absolute cell references, calculate the number of paintings if U is equal to 4 and the number of carpets is equal to the value in cell C9. Copy the formula from cell D9 down the column to cell D12. 1
3 In cell E9, by using relative and absolute cell references, calculate the number of paintings if U is equal to 6 and the number of carpets is equal to the value in cell C9. Copy the formula from cell E9 down the column to cell E12. 1
4 In cells C16-I16, insert a Scatter Chart for the indifference curves. Inserting a Chart On the Insert tab, in the Charts group, click the arrow next to Insert Scatter (X,Y) or Bubble Chart and choose Scatter with Smooth Lines Chart. Selecting Data Series Then in Select Data Source window, delete any series created automatically. Add new series for an indifference curve for U=4 using cells C9:C12 for the X values and cells D9:D12 for the Y values. Use D8 as the series name. Add new series for an indifference curve for U=6 using cells C9:C12 for the X values and cells E9:E12 for the Y values. Use E8 as the series name. Edit Chart Elements Select design Style 1 for the chart. Go to the Add Chart Elements dropdown list in the Design tab of the Ribbon. Add Indifference Curves for Persian Carpets and Native American Paintings as the chart title. Add No. of Carpets (x) as the title for the horizontal axis and No. of Paintings (y) as the title for the vertical axis. Add the legend and choose the Bottom option. Chart Position Set the chart height and width so the entire chart fits within cells C16-I16. 4
5 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0