Suppose that a typical consumer’s utility function is characterized by the following relation between good X and good Y. The consumer’s consumption decision is influence by the price of the respective goods, which requires him 2 birr for each unit of X and 3 birr for each unit of Y and the resource available to him is 160 birr. A construct the budget constraint of this typical consumer Find the optimal consumption of X and Y
Suppose that a typical consumer’s utility function is characterized by the following relation between good X and good Y. The consumer’s consumption decision is influence by the price of the respective goods, which requires him 2 birr for each unit of X and 3 birr for each unit of Y and the resource available to him is 160 birr. A construct the budget constraint of this typical consumer Find the optimal consumption of X and Y
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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Suppose that a typical consumer’s utility function is characterized by the following relation between good X and good Y. The consumer’s consumption decision is influence by the price of the respective goods, which requires him 2 birr for each unit of X and 3 birr for each unit of Y and the resource available to him is 160 birr.
A construct the budget constraint of this typical consumer
Find the optimal consumption of X and Y
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