Suppose we have a consumer with utility U(X,Y) = 3X + 2Y. She has income M = $200 and faces prices Px=$4 and Py = $5. Clearly state the Consumer’s Optimization (choice) Problem in words. Sketch the problem (budget set, indifference curves, and optimal solution) Solve for optimal consumption X* and Y*
Suppose we have a consumer with utility U(X,Y) = 3X + 2Y. She has income M = $200 and faces prices Px=$4 and Py = $5. Clearly state the Consumer’s Optimization (choice) Problem in words. Sketch the problem (budget set, indifference curves, and optimal solution) Solve for optimal consumption X* and Y*
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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Suppose we have a consumer with utility U(X,Y) = 3X + 2Y. She has income M = $200 and faces prices Px=$4 and Py = $5.
Clearly state the Consumer’s Optimization (choice) Problem in words.
Sketch the problem (budget set, indifference
Solve for optimal consumption X* and Y*
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