Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Typed and correct answer please. I will rate accordingly. Please do it correct. Most impo
![7. U(x, y) = x0.5 y0.5 , and budget line 400 =
10x + 20y
%3D
a. What is the optimal bundle of x and y? Depict this graphically.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34acabc7-5c87-412c-b3ab-f500cea60481%2Fc585e149-be1c-4f10-aa78-7e448134decb%2Fqqzy79_processed.png&w=3840&q=75)
Transcribed Image Text:7. U(x, y) = x0.5 y0.5 , and budget line 400 =
10x + 20y
%3D
a. What is the optimal bundle of x and y? Depict this graphically.
![0. Suppose the price of good x falls to $6, what is the new optimal bundle?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34acabc7-5c87-412c-b3ab-f500cea60481%2Fc585e149-be1c-4f10-aa78-7e448134decb%2F8fl91jk_processed.png&w=3840&q=75)
Transcribed Image Text:0. Suppose the price of good x falls to $6, what is the new optimal bundle?
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