Consider an individual who consumes two goods, x and y. Her utility function is U(x, y) = x¹/³y2/3 The prices of the goods are p = Py = 1. She has a gift certificate worth $40 and an income of I= $50. (i) (Unrestricted) Suppose the gift certificate is unrestricted so it can be spent on oit hor or y or both What is her optimal bundlo?

Consider an individual who consumes two goods, x and y. Her utility function is U(x, y) = x¹/³y2/3 The prices of the goods are p = Py = 1. She has a gift certificate worth $40 and an income of I= $50. (i) (Unrestricted) Suppose the gift certificate is unrestricted so it can be spent on oit hor or y or both What is her optimal bundlo?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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