8. What is the optimal consumption bundle of the individual, whose utility function and income, along with market prices of two commodities, are given below? U(x₁, x2) = √x1x2 ; I = 100 ; P₁ = 1 ; P₂ = 4 (x₁ = 30, x₂ = 15) (x₁ = 40, x₂ = 15) (x₁ = 50, x₂ = 12.5) (x₁ = 50, x₂ = 20)
8. What is the optimal consumption bundle of the individual, whose utility function and income, along with market prices of two commodities, are given below? U(x₁, x2) = √x1x2 ; I = 100 ; P₁ = 1 ; P₂ = 4 (x₁ = 30, x₂ = 15) (x₁ = 40, x₂ = 15) (x₁ = 50, x₂ = 12.5) (x₁ = 50, x₂ = 20)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![8. What is the optimal consumption bundle of the individual, whose utility function and income,
along with market prices of two commodities, are given below?
√√x1x2 ; 1 =
U (x1, x2) =
(x₁ = 30, x₂ = 15)
(x₁ = 40, x2 = 15)
100; P₁ = 1; P₂ = 4
(x₁ = 50, x2 = 12.5)
(x₁= 50, x2 = 20)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd33cbe7b-2d82-40f7-a36e-e2671fc208b5%2F0640b938-6cb4-482b-86d3-1879652c6898%2Fmj81i7_processed.png&w=3840&q=75)
Transcribed Image Text:8. What is the optimal consumption bundle of the individual, whose utility function and income,
along with market prices of two commodities, are given below?
√√x1x2 ; 1 =
U (x1, x2) =
(x₁ = 30, x₂ = 15)
(x₁ = 40, x2 = 15)
100; P₁ = 1; P₂ = 4
(x₁ = 50, x2 = 12.5)
(x₁= 50, x2 = 20)
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