Suppose a consumer utility function is given by U(X,Y)=XY+8X the price of good X and Y are 2 birr and 6 birr respectively the consumer has total income of 160 birr to be spent on two goods A) find the utility maximizing quantities of good X and Y B) find MRXSY at equilibrium
Suppose a consumer utility function is given by U(X,Y)=XY+8X the price of good X and Y are 2 birr and 6 birr respectively the consumer has total income of 160 birr to be spent on two goods A) find the utility maximizing quantities of good X and Y B) find MRXSY at equilibrium
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 10SQ
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Suppose a consumer utility function is given by U(X,Y)=XY+8X the price of good X and Y are 2 birr and 6 birr respectively the consumer has total income of 160 birr to be spent on two goods
A) find the utility maximizing quantities of good X and Y
B) find MRXSY at equilibrium
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Author:
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