A5 An individual values two goods, X and Y, according to the following utility function-1.14U(X,Y)=33 (0.25 X-+0.75 Y-0.88)The price of X is Pr 3, and the price of Y is Py-3. The individual has 12 dollars.-0.88How much X and Y should this individual buy?(Round answers to the nearest two decimals. For example, 1.666 rounds to 1.67.)X= NombreY Nombre

Given Consumer utility function: U(X,Y)=30.25X-0.88+0.75Y-0.88-1.14 Price of good X (Px)=3 Price…

An individual values two goods, X and Y, according to the following utility function 1.14 U(X,Y)=3 (0.25 X-0.88 +-0.75 -0.88 The price of X is Pr 3, and the price of Y is Py-3. The individual has 12 dollars. How much X and Y should this individual buy? (Round answers to the nearest two decimals. For example, 1.666 rounds to 1.67.) X= Nombre Y= Nombre

An individual values two goods, X and Y, according to the following utility function 1.14 U(X,Y)=3 (0.25 X-0.88 +-0.75 -0.88 The price of X is Pr 3, and the price of Y is Py-3. The individual has 12 dollars. How much X and Y should this individual buy? (Round answers to the nearest two decimals. For example, 1.666 rounds to 1.67.) X= Nombre Y= Nombre

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Supposethat John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?
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