Suppose that a typical consumer’s utility function is characterized by the following relation between good X and good Y. The consumer’s consumption decision is influence by the price of the respective goods, which requires him 2 birr for each unit of X and 3 birr for each unit of Y and the resource available to him is 160 birr. A construct the budget constraint of this typical consumer Find the optimal consumption of X and Y

Suppose that a typical consumer’s utility function is characterized by the following relation between good X and good Y. The consumer’s consumption decision is influence by the price of the respective goods, which requires him 2 birr for each unit of X and 3 birr for each unit of Y and the resource available to him is 160 birr. A construct the budget constraint of this typical consumer Find the optimal consumption of X and Y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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