A student has Rs:200 per month to spend on two commodity q₁ and q2. Suppose that the price of q₁ is Rs:10 and that of q2 is Rs:5 then calculate the equilibrium values of q1 and q2. [Given: the Utility function U = q1 q2.

A student has Rs:200 per month to spend on two commodity q₁ and q2. Suppose that the price of q₁ is Rs:10 and that of q2 is Rs:5 then calculate the equilibrium values of q1 and q2. [Given: the Utility function U = q1 q2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A student has Rs:200 per month to spend on two commodity q₁ and q2. Suppose
that the price of q₁ is Rs:10 and that of q2 is Rs:5 then calculate the equilibrium
values of q1 and q2. [Given: the Utility function U = 9₁ 92.

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