22. Milton consumes two commodities in a perfect market system. The price of x is $5 and the price of y is $1. His utility function is U(x, y) = xy. He is endowed with 40 units of good x and no y (zero units of y). Find his consumption of good y. a. 110 b. 105 c. 50 d. 100 e. None of the above.
22. Milton consumes two commodities in a perfect market system. The price of x is $5 and the price of y is $1. His utility function is U(x, y) = xy. He is endowed with 40 units of good x and no y (zero units of y). Find his consumption of good y. a. 110 b. 105 c. 50 d. 100 e. None of the above.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 11SQ
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Transcribed Image Text:22. Milton consumes two commodities in a perfect market system. The price of x is $5 and the price of y
is $1. His utility function is U(x, y) = xy. He is endowed with 40 units of good x and no y (zero units
of y). Find his consumption of good y.
a. 110
b. 105
C. 50
d.
100
e. None of the above.
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