Suppose a consumer had a utility function given by: U = XY². If the price of Good X (Px) is $6 and the price of Good Y is $24 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $180 (Round to the nearest two decimal places if necessary.) Answer:

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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Suppose a consumer had a utility function given by: U = XY². If the price
of Good X (Px) is $6 and the price of Good Y is $24 then what is the utility
maximizing quantity of Good Y the consumer will purchase with a budget of
$180
(Round to the nearest two decimal places if necessary.)
Answer:
Transcribed Image Text:Suppose a consumer had a utility function given by: U = XY². If the price of Good X (Px) is $6 and the price of Good Y is $24 then what is the utility maximizing quantity of Good Y the consumer will purchase with a budget of $180 (Round to the nearest two decimal places if necessary.) Answer:
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