Sam's consumption patterns of wine (x) and flowers (y) can be described by the function U=x*y2. We know that he spends HUF 6000 on the two products. If he only buys wine, he can buy a maximum of 12 bottles and the price of flowers is HUF 250. Which type of preference system does Sam's preference belong to? What is the consumer's MRS function? What is the price of wine? How much wine is consumed at the optimum? # + ÷ 4 ♦
Sam's consumption patterns of wine (x) and flowers (y) can be described by the function U=x*y2. We know that he spends HUF 6000 on the two products. If he only buys wine, he can buy a maximum of 12 bottles and the price of flowers is HUF 250. Which type of preference system does Sam's preference belong to? What is the consumer's MRS function? What is the price of wine? How much wine is consumed at the optimum? # + ÷ 4 ♦
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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