Suppose that Priya has Cobb-Douglas utility and she spends 1/4 of her income (budget) on good 1, and the remaining 3/4 on good 2. Solve for the quantity of good 1 that, when consumed with 3 units of good 2, she is just as well of as when she consumes 9 units of good 1 and 8 units of good 2. Round your answer to 2 decimal places. Your Answer: Answer

Suppose that Priya has Cobb-Douglas utility and she spends 1/4 of her income (budget) on good 1, and the remaining 3/4 on good 2. Solve for the quantity of good 1 that, when consumed with 3 units of good 2, she is just as well of as when she consumes 9 units of good 1 and 8 units of good 2. Round your answer to 2 decimal places. Your Answer: Answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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