A student spends 270 HUF on books (x) and renting bikes (y). The price of an average book is 16 HUF and renting a bike for 1 hour costs 17 HUF. The preferences of the student are given by her utility function U(x,y) = x^(0,4)y^(0.6). Assuming that the student is rational, for how many hours is she renting a bike if she can only rent the bike for round hours?

A student spends 270 HUF on books (x) and renting bikes (y). The price of an average book is 16 HUF and renting a bike for 1 hour costs 17 HUF. The preferences of the student are given by her utility function U(x,y) = x^(0,4)y^(0.6). Assuming that the student is rational, for how many hours is she renting a bike if she can only rent the bike for round hours?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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