The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(1,2)y^(6). We know that good x costs 20, and good y costs 90 units of money. The consumer's entire budget is 7440 units of money. How much is her optimal consumption of the good x?

The utility function of a consumer regarding two goods x and y is given by U(x,y) = x^(1,2)y^(6). We know that good x costs 20, and good y costs 90 units of money. The consumer's entire budget is 7440 units of money. How much is her optimal consumption of the good x?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 25SQ

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Question

MICROECONOMICS

The utility function of a consumer regarding two goods x and y is given by

U(x,y) = x^(1,2)y^(6).

We know that good x costs 20, and good y costs 90 units of money. The consumer's entire budget is 7440 units of money. How much is her optimal consumption of the good x?

Study of decisions made by households and business firms at an individual level. It includes several laws and theorems related to demand, supply, production, allocation of resources, and prices.

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