Suppose a consumer's utility function is given by U(X,Y) XY. Also, the consumer has $720 to spend. The price of X is Px = $9, and the price of Y is Py = $9. a. How much X and Y should the consumer purchase in order to maximize her utility? b. How much total utility does the consumer receive?

Suppose a consumer's utility function is given by U(X,Y) XY. Also, the consumer has $720 to spend. The price of X is Px = $9, and the price of Y is Py = $9. a. How much X and Y should the consumer purchase in order to maximize her utility? b. How much total utility does the consumer receive?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 9SQP

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Question

Suppose a consumer's utility function is given by
(X,Y)
XY. Also, the consumer has $720 to spend. The
price of X is Px = $9, and the price of Y is Py = $9.
a. How much X and Y should the consumer purchase in order
to maximize her utility?
b. How much total utility does the consumer receive?

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