4.4 a. Mr. Odde Ball enjoys commodities Xand Y according to the utility function U(X, Y) =...

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4.4

a. Mr. Odde Ball enjoys commodities Xand Y according to the utility function U(X, Y) = VX 2 + P.

Maximize Mr. Ball's utility if Px = $3, PY = $4, and he has $50 to spend.

Hint: It may be easier here to maximize U 2

rather than U. Why won't this alter your results?

b. Graph Mr. Ball's indifference curve and its point of tangency with his budget constraint.

What does the graph say about Mr. Ball's behavior? Have you found a true maximum?

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9780030335938

8th Edition

Authors: Walter Nicholson

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Question Posted: Nov 14, 2024 01:00 AM

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4.4 a. Mr. Odde Ball enjoys commodities Xand Y according to the utility function U(X, Y) =...

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Microeconomic Theory Basic Principles And Extensions

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