Consider a consumer whose preferences are given by the utility function U (x, y) = (x + 1)² (y + 1)where x and y are the quantities he consumes of goods x and y and the prices of good x and good y are p, and p, respectively and his income is m. Assume that p, is twice of p,. The demand function of good x (p,, m) is (а) т Зр, 2m (b) Зр, (c) 3p. 2m (d) 3p, (e) None of the above.

Consider a consumer whose preferences are given by the utility function U (x, y) = (x + 1)² (y + 1)where x and y are the quantities he consumes of goods x and y and the prices of good x and good y are p, and p, respectively and his income is m. Assume that p, is twice of p,. The demand function of good x (p,, m) is (а) т Зр, 2m (b) Зр, (c) 3p. 2m (d) 3p, (e) None of the above.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.8P

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