Question 1 Yoko has the utility function U(x, y) = 2r(y + 3). The price of x is £2 and the price of y is £1. Income is £10. i. How much x does Yoko demand? How much y? ii. If her income doubles and prices stay unchanged, will Yoko's demand for both goods double? Show all your calculations by any method including the Lagrange multiplier if needed.
Question 1 Yoko has the utility function U(x, y) = 2r(y + 3). The price of x is £2 and the price of y is £1. Income is £10. i. How much x does Yoko demand? How much y? ii. If her income doubles and prices stay unchanged, will Yoko's demand for both goods double? Show all your calculations by any method including the Lagrange multiplier if needed.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 3P
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![Question 1
Yoko has the utility function U(x, y) = 2r(y + 3). The price of x is £2 and the price of y is £1.
Income is £10.
i. How much x does Yoko demand? How much y?
ii. If her income doubles and prices stay unchanged, will Yoko's demand for both goods double?
Show all your calculations by any method including the Lagrange multiplier if needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d999dbe-441b-4401-bc06-039f4ca8b108%2Faf5897f1-8d49-42e7-b565-d7274e367f8d%2Fhyg4e2s_processed.png&w=3840&q=75)
Transcribed Image Text:Question 1
Yoko has the utility function U(x, y) = 2r(y + 3). The price of x is £2 and the price of y is £1.
Income is £10.
i. How much x does Yoko demand? How much y?
ii. If her income doubles and prices stay unchanged, will Yoko's demand for both goods double?
Show all your calculations by any method including the Lagrange multiplier if needed.
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