A consumer's preferences for food (x) and clothing (y) are represented by the utility function ?x,y = xy^0.5. Suppose the consumer's income is m = 12 and the prices are P x = 1 and P y = 2. Calculate the optimal bundle. Calculate the indirect utility function.

A consumer's preferences for food (x) and clothing (y) are represented by the utility function ?x,y = xy^0.5. Suppose the consumer's income is m = 12 and the prices are P x = 1 and P y = 2. Calculate the optimal bundle. Calculate the indirect utility function.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 8QFR

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