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Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good Y is $6 per unit. Therefore, the consumer can afford the bundles shown in the table below (without any wasted income). What is this consumer's utility maximizing bundle? Affordable bundles X (units) Y (units) TU TU 0 20 0 300 16 50 260 12 95 210 8 150 4 1 2 3 4 5 0 135 170 80 200 0 1 unit of X and 16 units of Y 2 unit of X and 12 units of Y 3 unit of X and 8 units of Y 4 unit of X and 4 units of Y

Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good Y is $6 per unit. Therefore, the consumer can afford the bundles shown in the table below (without any wasted income). What is this consumer's utility maximizing bundle? Affordable bundles X (units) Y (units) TU TU 0 20 0 300 16 50 260 12 95 210 8 150 4 1 2 3 4 5 0 135 170 80 200 0 1 unit of X and 16 units of Y 2 unit of X and 12 units of Y 3 unit of X and 8 units of Y 4 unit of X and 4 units of Y

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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4 Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good Y is $6 per unit. Therefore, the consumer can afford the bundles shown in the table below (without any wasted income). What is this consumer's utility maximizing bundle? Affordable bundles X (units) Y (units) TU 0 20 0 50 95 135 170 80 200 0 1 2 3 4 5 16 12 8 4 0 TU 300 260 210 150 1 unit of X and 16 units of Y 2 unit of X and 12 units of Y 3 unit of X and 8 units of Y 4 unit of X and 4 units of Y
Transcribed Image Text:4 Suppose a consumer has an income of $120, the price of good X is $24 per unit and the price of good Y is $6 per unit. Therefore, the consumer can afford the bundles shown in the table below (without any wasted income). What is this consumer's utility maximizing bundle? Affordable bundles X (units) Y (units) TU 0 20 0 50 95 135 170 80 200 0 1 2 3 4 5 16 12 8 4 0 TU 300 260 210 150 1 unit of X and 16 units of Y 2 unit of X and 12 units of Y 3 unit of X and 8 units of Y 4 unit of X and 4 units of Y
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