Assume that bob has a Cobb Douglas utility function U (F,H) = A F^0.7 H^0.3 over Food F and Housing H. How much does Bob spend on Housing and Food when the price of Housing is 10$ and income is 200 ?
Assume that bob has a Cobb Douglas utility function U (F,H) = A F^0.7 H^0.3 over Food F and Housing H. How much does Bob spend on Housing and Food when the price of Housing is 10$ and income is 200 ?
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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Assume that bob has a Cobb Douglas utility function U (F,H) = A F^0.7 H^0.3 over Food F and Housing H. How much does Bob spend on Housing and Food when the
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