Suppose that consumer ((has the following utility funetion: U(X, Y) = In(3X) + 2Y. What would be thedemand function for Y?where Py denotes price of good Y and I denotes income.2PyI1where Py denotes price of good Y and I denotes inconme.2Py1where Py denotes price of good Y and I denotes income.2PYPYPy-1 where P, and P denote prices of goods X and Y and I denotes income.2P xl

Utility function: U = ln(3X) + 2Y ---------- Let's assume Px is the price of good X Py is the price…

Suppose that consumer (has the following utility function: U(X,Y) = In(3X) + 2Y. What would be the demand function for Y? where Py denotes price of good Y and I denotes income. 2Py I where Py denotes price of good Y and I denotes income. Py

Suppose that consumer (has the following utility function: U(X,Y) = In(3X) + 2Y. What would be the demand function for Y? where Py denotes price of good Y and I denotes income. 2Py I where Py denotes price of good Y and I denotes income. Py

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Suppose that consumer ((has the following utility funetion: U(X, Y) = In(3X) + 2Y. What would be the
demand function for Y?
where Py denotes price of good Y and I denotes income.
2Py
I
1
where Py denotes price of good Y and I denotes inconme.
2
Py
1
where Py denotes price of good Y and I denotes income.
2PY
PY
Py
-1 where P, and P denote prices of goods X and Y and I denotes income.
2P xl

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