1. John spends PLN 60 per week on two goods: x and y. The price of good x is PLN 2 and the price of good y is PLN 6. The utility function is: U(x, y) = x² + y a) What quantities of products x and y does he purchase each week at equilibrium? b) What will happen if Piotr's income increases by PLN 6 per week? What will be the new demand for x and y?4
1. John spends PLN 60 per week on two goods: x and y. The price of good x is PLN 2 and the price of good y is PLN 6. The utility function is: U(x, y) = x² + y a) What quantities of products x and y does he purchase each week at equilibrium? b) What will happen if Piotr's income increases by PLN 6 per week? What will be the new demand for x and y?4
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 9QP
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Transcribed Image Text:1. John spends PLN 60 per week on two goods: x and y. The price of good x is PLN 2
and the price of good y is PLN 6. The utility function is: U(x, y) = x² + y
a) What quantities of products x and y does he purchase each week at equilibrium?
b) What will happen if Piotr's income increases by PLN 6 per week? What will be the
new demand for x and y?4
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