Suppose a consumer lives in two periods, with his income in period 1 as $100 and his income in period 2 as $150. If the rate of interest in the economy is 12%. Find the equilibrium level of consumption in both the periods(C1",C2*) if his utility function is given as: U= C10.5C20.5. O (138.17, 110.54) O (110.54, 138.17) (125 ,125) O (90.54, 180.84)
Suppose a consumer lives in two periods, with his income in period 1 as $100 and his income in period 2 as $150. If the rate of interest in the economy is 12%. Find the equilibrium level of consumption in both the periods(C1",C2*) if his utility function is given as: U= C10.5C20.5. O (138.17, 110.54) O (110.54, 138.17) (125 ,125) O (90.54, 180.84)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Suppose a consumer lives in two periods, with his income in period 1 as $100 and his income in period 2 as $150. If the rate of interest in the economy is 12%. Find
the equilibrium level of consumption in both the periods(C1*,C2*) if his utility function is given as: U = C10.5C20.5.
O (138.17, 110.54)
(110.54 , 138.17)
O (125 ,125)
(90.54, 180.84)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5860ef23-d2b4-4c8a-b41b-07a2aabf445d%2F05000302-f7c8-419f-afae-6eeaf785d64e%2Fwx8hjt7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a consumer lives in two periods, with his income in period 1 as $100 and his income in period 2 as $150. If the rate of interest in the economy is 12%. Find
the equilibrium level of consumption in both the periods(C1*,C2*) if his utility function is given as: U = C10.5C20.5.
O (138.17, 110.54)
(110.54 , 138.17)
O (125 ,125)
(90.54, 180.84)
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