Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on the total utility and marginal utility graphs. a) A consumer has budgeted $10 for two goods X and Y. Both of these goods have the same utility function shown above. If the price of good X (Px) is equal to $1 and the price of good Y (PV) is $2, what combination of goods will this rational consumer purchase? Good X: unit(s) unit(s) Good Y: b) Suppose that the budgeted amount falls to $5. This consumer would buy: units of Good X and units of Good Y.

Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on the total utility and marginal utility graphs. a) A consumer has budgeted $10 for two goods X and Y. Both of these goods have the same utility function shown above. If the price of good X (Px) is equal to $1 and the price of good Y (PV) is $2, what combination of goods will this rational consumer purchase? Good X: unit(s) unit(s) Good Y: b) Suppose that the budgeted amount falls to $5. This consumer would buy: units of Good X and units of Good Y.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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