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ralph has a utility function u(x,y) = 0.5x + y and an income of $M. Let the price of x be $4 and the price of y be $10. In this case, the consumer's optimal demand for good x* = M/16 2M M/4

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

ralph has a utility function u(x,y) = 0.5x + y and an
income of $M. Let the price of x be $4 and the
price of y be $10. In this case, the consumer's
optimal demand for good x* =
M/16
2M
M/4

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