QUESTION 10: Suppose you have the following utility function U(X,Y)=min{2X,Y} Again, let's assume you have $80 to spend, and the prices are P = 2 and Py = 4 Given the above prices, income and preferences, what is the utility-maximizing level of x? and y?
QUESTION 10: Suppose you have the following utility function U(X,Y)=min{2X,Y} Again, let's assume you have $80 to spend, and the prices are P = 2 and Py = 4 Given the above prices, income and preferences, what is the utility-maximizing level of x? and y?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 10: Suppose you have the following utility function
U(X,Y)=min{2X,Y}
Again, let's assume you have $80 to spend, and the prices are Px = 2 and Py = 4
Given the above prices, income and preferences, what is the utility-maximizing level of x?
and y?
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