Consider two consumers, A and B, who consume two goods, x and y. Assume that the utilityfunction for A is UA Ay and the utility function for B is UB = BYB. Consumer A isendowed with 10 units of x an 10 units of y. Consumer B is endowed with 10 units of x and 40units of y.Consider consumer A alone, what share of their income do they spend on each good?Share on xShare on y=[Choose ]1/22/31/43/4✓ 11/3

A Utility Function is an economic idea to represents an individual's possibilities or pleasure…

Answered: utility

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Economics

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider two consumers, A and B, who consume two goods, x and y. Assume that the utility
function for A is UA Ay and the utility function for B is UB = BYB. Consumer A is
endowed with 10 units of x an 10 units of y. Consumer B is endowed with 10 units of x and 40
units of y.
Consider consumer A alone, what share of their income do they spend on each good?
Share on x
Share on y
=
[Choose ]
1/2
2/3
1/4
3/4
✓ 1
1/3

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