1. Sally consumes two goods X and Y, her utility function is given by the equation U= 60XY2.The current market price for X is 200 birr, while the market price for y is 100birr and her current Income is 10,000birr A. Sketch a set of two Indifferent curves for Sally in her consumption of X and Y B. Write the expression for Sally's budget constraint graph the budget constraint and find the slope C. Determine the X, Y combination that maximize her utility given her budget constraint D. Calculate the Impact on Sally's optimum consumption of X and Y If the price of X increase to 300birr.
1. Sally consumes two goods X and Y, her utility function is given by the equation U= 60XY2.The current market price for X is 200 birr, while the market price for y is 100birr and her current Income is 10,000birr A. Sketch a set of two Indifferent curves for Sally in her consumption of X and Y B. Write the expression for Sally's budget constraint graph the budget constraint and find the slope C. Determine the X, Y combination that maximize her utility given her budget constraint D. Calculate the Impact on Sally's optimum consumption of X and Y If the price of X increase to 300birr.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. Sally consumes two goods X and Y, her utility function is given by the equation U= 60XY2.The current market
A. Sketch a set of two Indifferent
B. Write the expression for Sally's budget constraint graph the budget constraint and find the slope
C. Determine the X, Y combination that maximize her utility given her budget constraint
D. Calculate the Impact on Sally's optimum consumption of X and Y If the price of X increase to 300birr.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 6 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education