A consumer has the utility function u(x,y) = xy and the price of both x and y are $4 aunit. If the consumer has an income of $224, what is the optimal amount of good xfor the consumer to purchase?O 28O 48O 110112 Consumer A has a utility function u(x,y) = min{0.5x, 2y) and an income of $250. Ifthe price of x is $10 and the price of y is $5, then the optimal basket (x*y*) isO (10.15, 25.55)O (15.50, 19.0)O (18.44, 13.12)O (22.22, 5.56)

Given Consumer utility function u(x,y)=xy ..... (1) The price of good x is $4 and the…

A consumer has the utility function u(x,y) = xy and the price of both x and y are $4 a unit. If the consumer has an income of $224, what is the optimal amount of good x for the consumer to purchase? O28 O 48 O 110

A consumer has the utility function u(x,y) = xy and the price of both x and y are $4 a unit. If the consumer has an income of $224, what is the optimal amount of good x for the consumer to purchase? O28 O 48 O 110

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A consumer has the utility function u(x,y) = xy and the price of both x and y are $4 a
unit. If the consumer has an income of $224, what is the optimal amount of good x
for the consumer to purchase?
O 28
O 48
O 110
112

Consumer A has a utility function u(x,y) = min{0.5x, 2y) and an income of $250. If
the price of x is $10 and the price of y is $5, then the optimal basket (x*y*) is
O (10.15, 25.55)
O (15.50, 19.0)
O (18.44, 13.12)
O (22.22, 5.56)

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