Question
a)A consumer's utility is U = Q 1 *Q 2 where each Qs are quantities of goods 1 & 2.Good 1 costs $2 while Good
a)A consumer's utility is U = Q1*Q2 where each Qs are quantities of goods 1 & 2.Good 1 costs $2 while Good 2 costs $3.Income is $30.What is the optimal consumption bundle?
b)How does this change if the price of Good 2 increases to $5?
c)How would a change in a consumer's preference structure impact these results?Describe this theoretically, there is no math to solve here.
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
