An individual is consuming two goods, good x and good y. His utility function is given as Perfect Substitutes: U(x, y) = 2x + 2y Assume that m = 200; p₁ = 1; P₂ = 2; p₁ = 2 P2 1. Calculate for the CV and the EV of the individual (HINT: If perfect substitutes, the consumer will only consumer either good x or good y; thus he will spend all on either good x or good y).

An individual is consuming two goods, good x and good y. His utility function is given as Perfect Substitutes: U(x, y) = 2x + 2y Assume that m = 200; p₁ = 1; P₂ = 2; p₁ = 2 P2 1. Calculate for the CV and the EV of the individual (HINT: If perfect substitutes, the consumer will only consumer either good x or good y; thus he will spend all on either good x or good y).

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 12SQ

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