Question
A consumer has set a budget of $400 for the consumption of good X and Y. The price of Good X is $10, and the
A consumer has set a budget of $400 for the consumption of good X and Y.
The price of Good X is $10, and the price of good Y is $20. The consumer has a Utility function given by U(X,Y) = xy
.
a) Find the optimal solution using a method that does not involves equations and illustrate the solution.
b) Calculate an equation that represents the demand for good X and illustrate in a graph.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
