Sam's consumption patterns of wine (x) and flowers (y) can be described by the function U=x*y2. We know that he spends HUF 6000 on the two products. If he only buys wine, he can buy a maximum of 12 bottles and the price of flowers is HUF 250. Which type of preference system does Sam's preference belong to? What is the consumer's MRS function? What is the price of wine? How much wine is consumed at the optimum? # + ÷ 4 ♦

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Sam's consumption patterns of wine (x) and flowers (y) can be described by the function U=x*y². We know that he spends HUF 6000 on the two products. If he only buys wine,
he can buy a maximum of 12 bottles and the price of flowers is HUF 250.
Which type of preference system does Sam's preference belong to?
What is the consumer's MRS function?
What is the price of wine?
How much wine is consumed at the optimum?
♦
+
+
4
#
Transcribed Image Text:Sam's consumption patterns of wine (x) and flowers (y) can be described by the function U=x*y². We know that he spends HUF 6000 on the two products. If he only buys wine, he can buy a maximum of 12 bottles and the price of flowers is HUF 250. Which type of preference system does Sam's preference belong to? What is the consumer's MRS function? What is the price of wine? How much wine is consumed at the optimum? ♦ + + 4 #
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