Answered: If utility is given by U(x, y) = x2 +…

If utility is given by U(x, y) = x2 + y2 and px = 2, py = 3, I = 50, this person will choose: a. (10, 10). b. (15, 6.67). c. (25, 0). d. (0, 50/3).

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

If utility is given by U(x, y) = x²+ y²and p_x= 2, p_y= 3, I = 50, this person will choose:

a. (10, 10).

b. (15, 6.67).

c. (25, 0).

d. (0, 50/3).

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