Sophia has income $160 and is in the market for goods X and Y. The price of good X is $5 and the price of good Y is $6. For Sophia's preferences, we can use the utility function u(X,Y)=X+2Y. In this case, the optimal basket is (X, Y) = O (32,0) O (34,0) O (0,26.67) O (0.29.97)

Sophia has income $160 and is in the market for goods X and Y. The price of good X is $5 and the price of good Y is $6. For Sophia's preferences, we can use the utility function u(X,Y)=X+2Y. In this case, the optimal basket is (X, Y) = O (32,0) O (34,0) O (0,26.67) O (0.29.97)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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