The Utility Function is U(q1, q2) = q11/6 . q21/3 a.) Solve for the amount of good #1 the individual would demand if good #1 and good #2 both have a price of $1 (p1= p2 =1) and the individual has an income of $9 ( Y = 9). b.) If the individual's income increased by 1%, what would be the resulting percentage change in their quantity demanded of good #1?
The Utility Function is U(q1, q2) = q11/6 . q21/3 a.) Solve for the amount of good #1 the individual would demand if good #1 and good #2 both have a price of $1 (p1= p2 =1) and the individual has an income of $9 ( Y = 9). b.) If the individual's income increased by 1%, what would be the resulting percentage change in their quantity demanded of good #1?
Chapter5: Income And Substitution Effects
Section: Chapter Questions
Problem 5.6P
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The Utility Function is U(q1, q2) = q11/6 . q21/3
a.) Solve for the amount of good #1 the individual would demand if good #1 and good #2 both have a price of $1 (p1= p2 =1) and the individual has an income of $9 ( Y = 9).
b.) If the individual's income increased by 1%, what would be the resulting percentage change in their quantity demanded of good #1?
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