The utility of a consumer derives from consuming the two goods X and Y can be assumed to be determined by the utility functionU(X,Y)= 4X°$y°5. If good X costs 10 birr a unit and good Y costs 15 birr a unit and the consumer's income is 120 birr. What combination of X and Y that will maximize utility?
The utility of a consumer derives from consuming the two goods X and Y can be assumed to be determined by the utility functionU(X,Y)= 4X°$y°5. If good X costs 10 birr a unit and good Y costs 15 birr a unit and the consumer's income is 120 birr. What combination of X and Y that will maximize utility?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQ
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