Suppose that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate the agent’s optimal consumption of x? price of y only price of x only income only price of x, price of y, and income price of x and y only

Suppose that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate the agent’s optimal consumption of x? price of y only price of x only income only price of x, price of y, and income price of x and y only

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 6P

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Question

Suppose that an agent has utility function u(x,y)=x+2y. What information is necessary to calculate the agent’s optimal consumption of x?

price of y only

price of x only

income only

price of x, price of y, and income

price of x and y only

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