The Utility Function is U(q1, q2) = q11/6 . q21/3a.) Solve for the amount of good #1 the individual would demand if good #1 and good #2 both have a price of $1 (p1= p2 =1) and the individual has an income of $9 ( Y = 9). b.) If the individual's income increased by 1%, what would be the resulting percentage change in their quantity demanded of good #1?

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Answered: The Utility Function is U(q1, q2) =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Utility Function is U(q₁, q₂) = q₁^1/6 . q₂^1/3

^{a.) Solve for the amount of good #1 the individual would demand if good #1 and good #2 both have a price of $1 (p₁= p₂ =1) and the individual has an income of $9}^{( Y = 9).}

^{b.) If the individual's income increased by 1%, what would be the resulting percentage change in their quantity demanded of good #1?}

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