2. Vibha consumes three goods X, (shirts), X, (food in pounds), and X, (shelter in square feet). Vibha's utility function is given by: U (X,, X,, X,) = 5ln Xt 3ln X, + 2ln X, 19 where In (x) or log. (x) is the natural logarithm. Vibha's weekly income is $100. Let the price of X, = P; = $10, the price of X, = P, = $2, and the price of X, = P; = $4. %3D What is the equation for Vibha’s budget constraint? а. b. |How many shirts, pounds of food, and square feet of shelter, will Vibha consume as a rational consumer?
2. Vibha consumes three goods X, (shirts), X, (food in pounds), and X, (shelter in square feet). Vibha's utility function is given by: U (X,, X,, X,) = 5ln Xt 3ln X, + 2ln X, 19 where In (x) or log. (x) is the natural logarithm. Vibha's weekly income is $100. Let the price of X, = P; = $10, the price of X, = P, = $2, and the price of X, = P; = $4. %3D What is the equation for Vibha’s budget constraint? а. b. |How many shirts, pounds of food, and square feet of shelter, will Vibha consume as a rational consumer?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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