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5. (20 points) Suppose a consumer's preferences can be represented by The utilityr function U(X,Y) = X*Y. Also, suppose the consumer has $300 to spend
5. (20 points) Suppose a consumer's preferences can be represented by The utilityr function U(X,Y) = X*Y. Also, suppose the consumer has $300 to spend and the price of Good X is P3; = $2 and the price of GoodY is PY = $6. If the consumer maximizes their utility subject to their budget constraint, how much of Good X and how much of Good Y will the consumer purchase? Y*=
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
