Is Harry spends his weekly income M > 0 on two commodities, food (X) and rental videos (Y) His utility function is U (X,Y)=2-√x+2√Y The price of food is Px > 0 and the price of rental videos is Py> 0. any of the two goods, food or rental videos, an inferior good for Harry? (

Is Harry spends his weekly income M > 0 on two commodities, food (X) and rental videos (Y) His utility function is U (X,Y)=2-√x+2√Y The price of food is Px > 0 and the price of rental videos is Py> 0. any of the two goods, food or rental videos, an inferior good for Harry? (

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Harry spends his weekly income M > 0 on two commodities, food (X) and rental videos (Y).
His utility function is
U (X,Y)=2-√x+2·√Y
The price of food is Px > 0 and the price of rental videos is Py > 0.
Is any of the two goods, food or rental videos, an inferior good for Harry? (

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