Consider a consumer with the utility function U (x, y) = x" y where x is the quantity of good X and y is the quantity of good Y and where a and b are positive constants. Let p, be the price of good X, p, be the price of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when the prices of both goods are 10, when M=200 and when a=b=2?

Consider a consumer with the utility function U (x, y) = x" y where x is the quantity of good X and y is the quantity of good Y and where a and b are positive constants. Let p, be the price of good X, p, be the price of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when the prices of both goods are 10, when M=200 and when a=b=2?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 25SQ

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Consider a consumer with the utility function U (x, y) = xª y where x is the quantity of good X and y is the quantity of good Y and where a and b are positive constants. Let p, be the price of good X, P, be the
price of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when the prices of both goods are 10, when M=200 and when a=b=2?

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