A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of goodx is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy?

Answer: Given, Utility function: U=x0.25y0.75 Income M=£100Price of good xPx=£5Price of good yPy=£10…

A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of goe x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy?

A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of goe x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 8E

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A consumer has a utility function given by U = x0.25 y0.75 „He has an income of £100, the price of good
x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy?

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