Question
Asked Mar 19, 2019
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please help

John earns $120 per week and likes to consume wine and cheese. His utility
function is of the form U(x.y)-x1/2y3 where x denotes the amount of cheese
consumed and y the amount of wine. His marginal utilities are MU
MUy
and
2r1/2
calculate the expenditure
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John earns $120 per week and likes to consume wine and cheese. His utility function is of the form U(x.y)-x1/2y3 where x denotes the amount of cheese consumed and y the amount of wine. His marginal utilities are MU MUy and 2r1/2 calculate the expenditure

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Expert Answer

Step 1

Use equilibrium condition to solve for x and y in terms of prices Px and Py.

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Step 2

Write x in terms of Utility U

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Step 3

Write y in terms o...

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