My utility over goods 1 and 2 is given by: u(x1,x2)=min{x1/a,x2/b} Where x1is the quantity of good 1 I consume and x2 is the quantity of good 2 I consume. Assuming I purchase only goods 1 and 2... If a = 2, b = 5, the price of good 1 is $2/unit, the price of good 2 if $7/unit and my income is $5, how much good 2 will I consume to maximize my utility? (Note: The answer may not be a whole number, so round your answer to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)
My utility over goods 1 and 2 is given by: u(x1,x2)=min{x1/a,x2/b} Where x1is the quantity of good 1 I consume and x2 is the quantity of good 2 I consume. Assuming I purchase only goods 1 and 2... If a = 2, b = 5, the price of good 1 is $2/unit, the price of good 2 if $7/unit and my income is $5, how much good 2 will I consume to maximize my utility? (Note: The answer may not be a whole number, so round your answer to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6. My utility over goods 1 and 2 is given by: u(x1,x2)=min{x1/a,x2/b}
Where x1is the quantity of good 1 I consume and x2 is the quantity of good 2 I consume.
Assuming I purchase only goods 1 and 2...
If a = 2, b = 5, the price of good 1 is $2/unit, the price of good 2 if $7/unit and my income is $5, how much good 2 will I consume to maximize my utility?
(Note: The answer may not be a whole number, so round your answer to the nearest hundredth)
(Note: The numbers may change between questions, so read carefully)
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